The Brazilian competition watchdog (Conselho Administrativo de Defesa Econômica - CADE) has approved a joint venture between Azul Linhas Aéreas Brasileiras (AD, Sao Paulo Viracopos) and Correios, the national postal operator.

The approval came around a year after the parties signed an initial Memorandum of Understanding (MoU) in December 2017. They subsequently applied for CADE's approval in early September 2018.

"The report from the General Superintendence approves, without restriction, the creation of a private integrated logistics solutions company. The proceeding is still subject to a possible third-party appeal or request for review by CADE's Tribunal, which can be made within 15 days as from such publication, pursuant to the applicable law," the carrier said in a stock market filing.

Azul has recently added its first full freighter B737-400(F) and is planning to add a second unit of the type by the end of the year. Chief Revenue Officer Abhi Shah told ch-aviation earlier this year that the carrier was planning to grow its own cargo operations in parallel to the joint venture with Correios.