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Hainan Airlines to make USD $450 million strategic investment in Azul for 23.7% stake

NEW YORK–(BUSINESS WIRE)–Hainan Airlines (“Hainan”) and Azul Brazilian Airlines (“Azul”) today announced a new strategic partnership. Hainan Airlines will acquire a 23.7% stake in Azul, Brazil’s third largest airline, aiming to benefit from substantial passenger traffic between China and Brazil, which are strong global trade partners. Hainan will assume the role of single largest shareholder of Azul, and will appoint new members to the board of directors.

Through the partnership, the companies will cooperate in the development of code sharing, new route development, and expand the loyalty participation programs.

This global partnership joins together two of the largest players in two of the fastest-growing aviation markets in the world. Azul is the largest airline in Brazil by number of cities served, offering more than 900 daily flights to more than 100 destinations. With a fleet of 145 aircraft Azul operates approximately one-third of the daily departures of the Brazilian aviation market. Hainan is part of the fourth largest airline group in terms of fleet size in the People’s Republic of China and operates a fleet of 561 aircrafts. It operates scheduled domestic and international service on more than 630 routes from locations throughout the People’s Republic of China and internationally.

Bravia Capital, a leading global transportation and infrastructure investment and advisory firm, and UBS Investment Bank served as financial advisor to the buyer. Seabury Securities LLC, Seabury Group’s investment banking unit, served as financial advisor to Azul.

About Azul Brazilian Airlines
Azul, the largest airline in Brazil by number of cities served, offers more than 900 daily flights to 101 destinations. With a fleet of 140 aircraft and more than 10,000 crewmembers, the company currently has a 32% share of departures of the Brazilian aviation market. Among other awards, Azul was named best low cost carrier in South America for the fifth consecutive time by Skytrax in 2015 and best low cost carrier in the world by CAPA in 2012. The airline also had best on-time performance in Brazil in 2014 and was recognized by FlightStats as having the best on-time performance in South America in 2012. For more information visit www.voeazul.com.br

About Bravia Capital
Bravia Capital is a Hong Kong based investment firm with a primary focus on transportation and logistics investments worldwide. Please find out more at www.braviacapital.com.

About Seabury Group
Seabury Group LLC (“Seabury”) is a global advisory firm with professionals on five continents in more than 15 countries serving Aviation, Aerospace & Defense, Financial Services, Government Services, Logistics, Maritime, Transportation, and related industries. Since 1995, Seabury has partnered with more than 300 clients in more than 50 countries on more than 1,200 engagements to solve complex challenges requiring consulting, investment banking, restructuring, and information technology solutions. Seabury also owns and operates a number of specialty finance companies providing innovative cross-border financing and electronic trading solutions. In addition, Seabury delivers enterprise solutions to airlines and aerospace companies through its software companies. www.seaburygroup.com.

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