Brazil's antitrust watchdog (Conselho Administrativo de Defesa Econômica - CADE) has formally approved a joint-venture between Azul Linhas Aéreas Brasileiras and Brazil's national postal service, Empresa Brasileira de Correios e Telégrafos (ECT).

In its ruling issued on Wednesday, February 13, CADE upheld an earlier decision handed down by its supreme organ, the Superintendent General's Office, in December which had concluded the tie-up would not result in any competitive or economic concerns despite objections lodged by LATAM Airlines Group and Avianca Brasil. The former had claimed that the partnership would distort the mail and cargo market, since ECT would use Azul exclusively for its air freight needs.

However, in the review that led to the unanimous approval of the project by CADE, counsel Maurício Oscar Bandeira Maia reiterated the SGO's original conclusion.

"Any competitive concerns have been removed because the revenue from freight transport is not large enough to affect the passenger air transport market. Therefore, I conclude that the information brought before me does not alter in any way the study done by the SGO," he pointed out.

Under the terms of the partnership, in which Azul owns 50.01% and ECT the remaining 49.99%, the joint-venture will offer an integrated logistics platform across road and air. Azul will provide its two B737-400(F)s to the service.