JV between Azul, Correios scores regulatory approval

Brazil’s top regulatory authority, Administrative Council for Economic (Cade) has approved, without restrictions, the creation of an integrated logistics joint venture (JV) between Brazil-based Azul Cargo Express and Correios. According to Cade, the operation does not increase the likelihood of cornering the air cargo market, due to both companies’ small market share in the regional cargo segment.

The joint venture, first announced in December 2017, will leverage Azul’s passenger network to replace much of the road-feeder transportation currently required for domestic mail transport in Brazil, which poses a number of security and transit-duration issues.

Around the same time the JV was announced, Azul began leasing two 737 freighters. Initially, the freighters are being deployed to serve the general cargo market, but will later play a role in the Correios JV.