Brazilian Airline Azul Opens Skies to USA

David Neeleman founder of JetBlue & West Jet at it again, taking new risks to connect USA to Brazil ahead of World Cup & 2016 Olympics.
5:03 | 05/08/14

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Transcript for Brazilian Airline Azul Opens Skies to USA
But first he launched jetBlue and many took his model to Brazil creating puzzle now ahead of the World Cup in the 2016 Olympics. He's bringing the new airline back to America he's David -- and he's with us now with -- nice to see David thanks to record and -- on C can't get an -- -- now I don't know if it's crazy it's. It's a sickness I guess is -- a -- because a lot of American travelers. Might think so considering the way that travel has become today yeah it's. You know it's obviously very difficult but you know fuel prices. Really change the game and aviation and -- any forced airlines to do things differently and nice I read an article where delta said 20% of all its revenues are coming from other than -- so they charge for everything trying to make of that difference -- feel. It is those billions and baggage fees multi billion dollars coming out of that and of course we see these videos all the time they go viral on the Internet of how baggage handlers. Are not being nice write your luggage after you paid a hundred bucks for it it's it's getting. Demolished so. What are what are you doing with his -- and and reassure anybody who's gonna I think right now that -- -- doesn't play that game well. Yeah as he said he started jetBlue and had a great experience here in New York doing that and I was born in Brazil. So I was wanted to go back to Brazil is something different my dad was a missionary down there and and they went back as a journalist for United Press International. So -- down saw the market down there and I thought wow you know you you really jetBlue type airline in Brazil really -- service and low fares. And -- today we have 900 flights today 205 cities. We fly almost a 100000 people -- -- in Brazil we doubled the size of the travel market. We see fifty million people a year traveled to Brazil now hundred million in huge growing middle class there he's going middle class -- so we thought what the heck let's flight let's by the United States. What the heck I can't happen if it isn't. Basically -- time because of course going from the US to Brazil is going to be hot route -- Olympics time you didn't quite get the flights are ready -- time. Enough for the real World Cup now -- will be flying out by the end of the year. And we're gonna first of -- Florida and -- his love Florida and so we're gonna -- probably Fort Lauderdale and and Orlando. And then. Little bit after that we're going to be fine fine to New York so. It's it's it's exciting time for us it really helps our -- our cargo business are packaged business effort of our business. And really adds a lot of dimensions to our business and and makes this you know a lot more relevant. How do you deal that that the thing everybody loved about -- Liu and loves about jetBlue is first of all you get the free fit right every seat has a television on it right. How do you deal with those things -- as you'll -- -- baggage is well. You know you may like this but in -- it's against a lot of charge for baggage fees sapa. If so consumers love and yet they love that. Really working on changing that -- -- well you. -- -- -- you know would be -- ago revenue but we're doing fine and that date certain the people get I think it's 28 kilos per person for freight. That's that's just a lot so that's the way we do business in Brazil and you know it creates a challenge but it's okay because the opportunities -- much bigger. But as far -- we free food obviously and we have television I'm bored resilience on television as much as Americans do. And so we have seventy channels television so that's one of the -- are we've grown so much is because we've got a much better line than our competitors and and people prefer to -- -- and and so it's it's been a fantastic prime. -- one of the things in the US market all the big airlines have -- we can't do this we can't stay competitive. -- lest we consolidate which is why you've seen delta and continental and united. And northwest all teaming up to treat these super airlines which jetBlue has managed to stay out out. How do you stay competitive. -- It's hard because. You know the ability to have you know the economies of scale and how can activity and -- -- American Airlines was completely bankrupt. And they were able to clean up all their -- -- enough you know. Get all -- labor contracts are structured -- pension problems and created basically fourteen billion dollars worth of value from nothing. Just by restructuring everything and -- -- with US Airways. And now their dominant force I mean they're they're going to be you know rival delta and -- united. He's -- as well so. Yes small airlines like jetBlue like Alaska Airlines yes spirits carved out and it shouldn't be charging for everything including overhead and and and yours and your seat. Yeah everything they charge of every faith they've created a lot of value -- in their their market caps over over four billion dollars. You know higher than -- lose and so you know there you have to figure -- new ways to do things and. And my -- is old doesn't figure out how to do it that way. But really we really appreciate your savings you shouldn't -- as though you've come to Brazil and I think you love the experience and you build the finest down -- present 2050. Look out for result absolutely all right David -- thanks so much we appreciate your -- -- America.

This transcript has been automatically generated and may not be 100% accurate.

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