Last updated: 03:54 PM ET, Thu July 02 2015

United Airlines and Azul Brazilian Airlines Form Partnership

Airlines & Airports | United Airlines | Donald Wood | June 26, 2015

United Airlines and Azul Brazilian Airlines Form Partnership

United Airlines made a major move for the future when it announced Friday that the company had reached a new strategic partnership Azul Brazilian Airlines.

In the agreement, United will acquire an approximate five-percent stake in Azul, Brazil's third-largest airline. Through one of United’s subsidiaries, the company will invest $100 million for its stake in Azul and will have one seat on the Brazilian airlines’ board of directors.

According to United, the two airlines are partnering for a range of customer benefits including expanded connection opportunities on routes between the United States and Brazil, joint loyalty-program participation and the codesharing of flights, pending government approval.

United's vice chairman and chief revenue officer Jim Compton released a statement about the partnership between the two airlines:

“Brazil is an important market in United's global route network and this partnership with Azul further strengthens our ties to the region. Together we will offer our mutual customers more choice and convenience when traveling to and from destinations across Brazil.”

United is joining forces with a Brazilian company that is already well established in the country. Azul serves more destinations in Brazil than any other carrier, and the partnership will offer customers more flight choices and connections for travel between the U.S. and Brazil.

With Azul boasting more than 50 daily flights from Sao Paulo's Guarulhos International Airport, the agreement with United will also provide an improved transfer process at the popular airport for customers and their baggage.

Another major upgrade from the partnership will be the expansion of each company’s frequent flyer loyalty programs. MileagePlus and TudoAzul members will now be able to earn benefits and redeem miles on both United and Azul.

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