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Hainan's HNA Group buys 23.7pc of Brazil's Azul Airlines for US$450 million
BRAZIL's Azul Airlines (Azul) has announced that China's HNA Group (HNA) has acquired a 23.7 per cent for US$450 million, setting Azul's value at $1.9 billion, according to Citi Research in Hong Kong.
This puts Azul's valuation just slightly below the implied US$2 billion valuation on United Airlinesˇ acquisition of five per cent of Azul earlier this year, said Michael Beer vice president Citi Research Asia Pacific Transportation/Infra/Logistics.
HNA will appoint new directors to Azul's board, even though the carrier is acquiring a non-voting stake in the carrier. Azul and HNA will start code-sharing agreements, while HNA implies that it would eventually launch flights to Brazil.
Hainan Airlines and Tianjin Airlines, two HNA members, are both Embraer customers - as is Azul. Azul-HNA Group could re-fleet of TAP de Portugal with Embraer aircraft, considering that Azul successfully bid for a minority active stake of TAP earlier this year.
Along with LATAM Airlines and GOL, Azul enjoys solid partnerships with big international carriers. Among the large Brazilian airlines, Avianca Brasil now stands alone in not having any equity participation from a big international airline.
"Looking at Latin America-based aviation as a whole, this announcement also closely follows last week's Delta Airlines' tender offer for 32 per cent of Aeromexico," said Mr Beer.
This puts Azul's valuation just slightly below the implied US$2 billion valuation on United Airlinesˇ acquisition of five per cent of Azul earlier this year, said Michael Beer vice president Citi Research Asia Pacific Transportation/Infra/Logistics.
HNA will appoint new directors to Azul's board, even though the carrier is acquiring a non-voting stake in the carrier. Azul and HNA will start code-sharing agreements, while HNA implies that it would eventually launch flights to Brazil.
Hainan Airlines and Tianjin Airlines, two HNA members, are both Embraer customers - as is Azul. Azul-HNA Group could re-fleet of TAP de Portugal with Embraer aircraft, considering that Azul successfully bid for a minority active stake of TAP earlier this year.
Along with LATAM Airlines and GOL, Azul enjoys solid partnerships with big international carriers. Among the large Brazilian airlines, Avianca Brasil now stands alone in not having any equity participation from a big international airline.
"Looking at Latin America-based aviation as a whole, this announcement also closely follows last week's Delta Airlines' tender offer for 32 per cent of Aeromexico," said Mr Beer.
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