@inproceedings{Bruno2019Appliedb,
title = {Empirical analysis of network construction determinants of Azul Airlines},
author = {Bruno Felipe Oliveira and Alessandro Vin\'{i}cius Marques Oliveira},
url = {https://www.sige.ita.br/edicoes-anteriores/2019/st/ST_08_1.pdf},
year = {2019},
date = {2019-01-01},
booktitle = {Simp\'{o}sio de Aplica\c{c}\~{o}es Operacionais em \'{A}reas de Defesa 2019 (SIGE2019)},
abstract = {This paper examines the airline network construction of Azul, a Brazilian low-cost carrier, investigating which and how factors affect Azul’s entry decision on domestic routes; and also analyze how Azul’s merger with the regional airline Trip has affected its network planning decisions. To do so, a Probit econometric model of airline entry is used. Results show that Azul’s business model is based on connecting new destinations, not served yet by rivals, to one of its hubs, and consistently avoiding dominant airlines at both route and airport levels. Regarding the effects of the merger, results suggest that Azul has shifted away from its original model based on JetBlue’s towards a more regional-oriented model, increasingly entering shorter routes and regional airports.},
keywords = {Applied Statistics, entry, merger},
pubstate = {published},
tppubtype = {inproceedings}
}
This paper examines the airline network construction of Azul, a Brazilian low-cost carrier, investigating which and how factors affect Azul’s entry decision on domestic routes; and also analyze how Azul’s merger with the regional airline Trip has affected its network planning decisions. To do so, a Probit econometric model of airline entry is used. Results show that Azul’s business model is based on connecting new destinations, not served yet by rivals, to one of its hubs, and consistently avoiding dominant airlines at both route and airport levels. Regarding the effects of the merger, results suggest that Azul has shifted away from its original model based on JetBlue’s towards a more regional-oriented model, increasingly entering shorter routes and regional airports.
