Azul Brazillian Airlines’ Demand-Stimulating Business Model

In 2006, American business magnate and founder of JetBlue, David Neeleman, decided to launch his latest project, a low-cost airline that promised to change Brazil’s airline industry for the better, by expanding service and introducing new, affordable air service to regions of the country that had never experienced this kind of connectivity before. Unlike many former low-cost airlines, which had previously thrived by operating classic business models in which they streamlined operational costs to the point that they could offer tickets that came at a steep discount to those offered by legacy airlines, Neeleman had a bold vision and a novel business model for the young Brazilian airline.

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