The paper "The Low-Cost Azul Airlines" is a good example of an assignment on business. Azul Blue is a local Brazilian airline that came into being in 2008 by the efforts of its current CEO, David Neeleman. Azul airline is benevolence to the middle class of Brazil who never thought of traveling by air before. By giving cheap rates and quality service, plus free transport from and to the airport, Azul is a name in itself. (Brady, 2010) It first began as Embraer aircraft, which provided uncomfortable chairs and more legroom in the middle, going through the service board; today it offers five different types of snacks from which customers can select on their own.
It also offers individual monitors for the entertainment, gives competitive rates in the industry, and also the inclusive network that includes nonstop flights, inner cities, and also a novel relationship program all for Azul. (Jones, 2010) Since three years of its creation in 2008, it has brought an optimistic change in the commercial aviation system of Brazil. Today, with approximately 10% stake, Azul Airline is considered as the third biggest airline in Brazil.
Its growth has been reflected in its unambiguous business vision, with the continued increase of its network of destination, fleet, market share, and operated routes. Azul is does growing and progressing at a very fast rate. (Sellers, 2010) From the period of 2010 to 2011, it made extraordinary success, won world records and also received best rates in the Brazilian airline industry From 2010 to 2011, the Azul Crew membership drastically increased from 3500 to 4500. The number of customers traveling by Azul Airlines increased more than doubled from 6 million in 2010 to 15million in 2011.
The number of daily flights increased from two hundred in 2010 to three hundred and fifty in 2011. Azul began to cover more destinations in 2011 than it did in 2010; it used to cover only twenty-eight destinations in 2010 but begin to cover forty-two in 2011. The market share boosted from 7.48% in 2010 to almost 10% in 2011. (Azul Official Website) Azul’ s role is to rouse the current air traffic and also improve the Brazilian economy by a simple equation that is easy to comprehend but difficult to implement: provide high-quality service at low prices.
Today, the company has received national as well as international acknowledgment. The company was awarded the “ Best Airline in Brazil” award by the Tourism and Travel and also by Flight Revue magazine. It also received “ One of the Hottest Brands” by the Advertising Age of New York. Skytrax World Airline Awards also gave“ the Best Airline low-cost Latin America” to Azul Airlines. Some questions still prevail in minds of commentators such as: The low-cost, best quality equation is not easy to provide.
With growing competitors entering into a price war, how does Neeleman plans to continue with this policy? How will he cover the costs and continue to increase profits for the country? Does the airline follow national or international rules? If it follows international guidelines, how will it pursue its objectives in a developing country like Brazil? As corruption is an imminent part of Brazil, how does the company plan to cope with it? Neeleman only holds 15% of the company but has voting rights so that he can’ t be kicked out of the organization.
When things will get tough for the company as it will reach a maturity stage, what will Neeleman do to keep up with the board? The CEO lives in the United States, and the airline only operates locally in Brazil. With growing concerns about safety and security, how will the company be manageable?