The US Bankruptcy Court for the Southern District of New York has approved Azul Linhas Aéreas Brasileiras’ USD1.6 billion debtor-in-possession financing as part of its Chapter 11 reorganisation process. In a statement, the Brazilian carrier said the approval marks a critical step forward in its ability to continue operating and to advance its “accelerated transformation plan”. Additionally, Azul filed an agreement with AerCap, which represents the majority of the airline’s lease liabilities. The deal provides contractual benefits of approximately USD1 billion, with a hearing set for August 13.