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Azul pledges to cap the cost of flights in Brazil during the World Cup.

New York (AirGuide - Inside Air Travel) - Thu, Jan 9, 2014

Azul has pledged to cap the cost of flights during the World Cup this year, adding to pressure on competitors who have been upbraided by the government for raising ticket prices. The Brazilian domestic carrier said, none of the routes that Azul flies during the tournament will cost more than BRR999 reais (USD$420), said Azul founder David Neeleman, who started Brazil's third-biggest airline after stepping down as CEO of JetBlue in 2008. The policy will cost Azul some BRR20 million reais in foregone revenue, Neeleman told journalists in Sao Paulo. He said the World Cup would also have a net negative impact on the carrier's bottom line due to a drop off in business travel. Civil aviation regulator ANAC welcomed Azul's move to cap fares and said it hoped other airlines would follow suit. Azul's decision comes after officials threatened price controls on the country's hotels and airlines, including larger rivals Gol and TAM. Those rivals have been cutting routes, handing back aircraft and firing flight staff over the past two years in an attempt to restore profit despite high fuel prices and a tough exchange rate. The World Cup has loomed as a chance to restore their profit margins. But Brazil's aviation industry is under harsh scrutiny as one of the biggest potential embarrassments at the World Cup. A dozen host cities are scattered around the vast country, which will force some 600,000 foreign and 3 million Brazilian fans through a series of overloaded airports during June and July.


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Comment:Azul pledges to cap the cost of flights in Brazil during the World Cup.
Publication:Airguide Online
Geographic Code:3BRAZ
Date:Jan 9, 2014
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