December 20, 2017 / 9:24 PM / a year ago

Brazil airline Azul to set up cargo company with postal service

BRASILIA, Dec 20 (Reuters) - Brazil’s third-biggest airline, Azul Linhas Aéreas, signed an agreement on Wednesday to create a private integrated logistics company to transport cargo in a joint venture with the state-owned Brazilian postal service Correios.

Azul said in a securities filing that it will have a controlling 50.01 percent ownership stake. The new company is expected to start operating in the first half of 2018 and will handle 100,000 tonnes of cargo per year, Azul said.

The president of Correios, Guilherme Campos, said the venture could cut the cost of postal transport by between 35 and 40 percent from 560 million reais a year ($170 million) at present.

Campos said the company could eventually expand abroad.

$1 = 3.2972 reais Reporting by Anthony Boadle; Editing by Tom Brown

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