“The low-cost model will not work in Brazil,” says Azul’s CEO.

“The low-cost model will not work in Brazil,” says Azul’s CEO.

Low cost model (low cost) The airlines, created in the USA and used in many countries, will not operate in Brazil, according to Azul CEO Linhas Aéreas. The statement was made by John Rodgerson, an executive who has been at Azul since its founding, nearly 15 years ago, and was previously at JetBlue, along with David Neeleman.

Both companies started in the model Low costwhere the focus is on cost reduction which includes fleet simplification, service harmonization, focus on online service and network focus targeting point-to-point routes.

It is worth remembering that the model Low cost It is not closed and its creator, Herb Kelleher of Southwest Airlines, never specified the exact parameters for its adoption, so it is constantly evolving and adapting. There is also the form Very low cost It is more heavy on cost cutting, and always offers minimal customer service, with many add-ons to download.

On the other hand, there is a term low fare, These are lower prices for passengers, arising from the two models Low cost. However, if the company works on this concept Low costdoes not necessarily mean that they offer lower prices.

In Brazil, GOL was, in fact, the first Low cost With strong inspiration from the Southwest model at the beginning, it has developed into its own business model, consistent with Brazilian reality. Another one worth mentioning is Webjet, with its initial focus on the entire online selling process to reduce costs.

In fact, today, no Brazilian airline comes close to that level Low cost American and European markets, both in terms of service level and consistently low prices. This was one of the questions posed by the newspaper the world Presented to the CEO of Azul.

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For John Rodgerson, the main reason is Brazil’s so-called cost, a combination of high fuel, a weak currency and excessive regulation that, he says, the country focuses 90% of the lawsuits against the world’s airlines, even though it is responsible for it. For 3% of global flights.

“If a low-cost company comes here and Santos Dumont closes its doors, it is responsible for all the costs (passenger accommodation costs and legal costs). I don’t think the low-cost model will work in Brazil at the moment.” John says.

For the executive, the biggest proof that this model is not applicable in the country is that with the expiration of the free check-in baggage allowance and the company being allowed to have 100% foreign capital, no new company, even before and after the pandemic, with different scenarios has emerged in the country. .

John ends by saying that this hurts the poorest people in Brazil: “The party that loses is Brazil, it is the third tier, because the average fare should be more expensive.”

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