Reuters reports that Amazon is in talks with Brazilian passenger airline Azul for e-commerce deliveries, quoting two "sources with knowledge of the matter" and calling it the "latest sign of the retailer’s big plans in Latin America’s largest economy".
Reuters added: "It also shows that the US e-commerce company is serious about overcoming the nation’s notorious logistical challenges, including shoddy roads, security problems and a national territory greater than the continental US."
Representatives for Azul declined to comment. Amazon told Reuters it did not comment on “rumors or speculation.”
Azul, the largest airline in Brazil by number of cities served, offers 766 daily flights to 104 destinations, with an operating fleet of 122 aircraft.
Only last week, Azul announced that it is to lease two Boeing 737-400 freighters to support the rapid growth of its cargo business unit, Azul Cargo Express.
Both aircraft are expected to be delivered during the second half of this year. Details of the lessor are not available.
In December 2017, Brazil's postal service Correios and Azul announced that they were joining forces to create a logistics platform to serve the Latin American nation's e-commerce sector, allowing "the expansion of logistics services and products to locations not yet attended”.
Activities are expected to begin in the first half of 2018, after the approvals from government authorities.
In late March this year, Azul said that it plans to expand its network by up to 35 new cities "in the coming years in various regions of Brazil, as well as to select international destinations".
Azul's shareholders include Hainan Airlines wth 22.6% and United Airlines Inc (Calfinco), with 3.9%.
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