Azul and Correios to form joint venture logistics company

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December 21, 2017: Azul Linhas Areas Brasileiras and Brazil's postal service, Correios have signed a memorandum of understanding (MoU) to create a new private integrated logistics solutions company, which is expected to contribute significantly to the Brazil's growth.

According to reports, Azul will hold 50.01 percent ownership stake in the new entity, and Correios will have rest 49.99 percent stake. The new entity will offer integrated logistics services for cargo transportation and is expecting to evolve as the best logistics platform for e-commerce in the country.

With the existing demand already served by Azul and Correios, the new entity will handle about 100 thousand tonnes of cargo every year. As a result, both companies will have cost savings, operating efficiency and revenue gains, thereby improving the service offer to the consumer.

"Azul is the only company with a broad aviation network, connecting the country with over 100 destinations. Correios has presence across 5,570 Brazilian cities, with the biggest distribution capillarity from its network. Having a company exploring this synergy, more Brazilians will have access to integrated services, allowing them to be even more active in the development of our country", said Gilberto Kassab, minister of science, technology and communication of Brazil.

"We witnessed a unique opportunity to make Brazil more efficient in logistics service, with clearer benefits to consumers. The beginning of this company will benefit Brazilians with Correios' current logistics costs reduction and dividends distribution, further improving the efficiency of our operation", said Guilherme Campos, CEO of Correios.

"It's a great opportunity to expand our cargo transportation and increase operating efficiency. We are the only company providing this level of service, as we are serving most of the cities in the country. Additionally, we have a strong presence in Viracopos airport, which is already the cargo hub in Brazil. Further, we have one of the highest on-time performances in the industry, which is essential for this service,' said John Rodgerson, CEO of Azul Linhas Areas Brasileiras.

Meanwhile, the MoU would be submitted to the Brazilian authorities and appropriate government bodies for approval. Only after their consent, the new company will be established and its activities are expected to begin in the first half of 2018.

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