  This paper describes an econometric model of the Brazilian domestic carrier
Azul Airlines' network construction. We employed a discrete-choice framework of
airline route entry to examine the effects of the merger of another regional
carrier, Trip Airlines, with Azul in 2012, especially on its entry decisions.
We contrasted the estimated entry determinants before and after the merger with
the benchmarks of the US carriers JetBlue Airways and Southwest Airlines
obtained from the literature, and proposed a methodology for comparing
different airline entry patterns by utilizing the kappa statistic for
interrater agreement. Our empirical results indicate a statistically
significant agreement between raters of Azul and JetBlue, but not Southwest,
and only for entries on previously existing routes during the pre-merger
period. The results suggest that post-merger, Azul has adopted a more
idiosyncratic entry pattern, focusing on the regional flights segment to
conquer many monopoly positions across the country, and strengthening its
profitability without compromising its distinguished expansion pace in the
industry.
