Brazilian airline Azul has taken delivery of its first Airbus A321 converted freighter. The design for modifying used passenger jets to carry cargo containers was approved by the country’s National Civil Aviation Agency (NCAA), the Airbus affiliate that rebuilt the aircraft announced Thursday.

The carrier’s cargo division will receive a second A321 passenger-to-freighter aircraft in December, said Elbe Flugzeugwerke GmbH (EFW). Several news outlets previously said the planes will join the active fleet in the first quarter. Azul is leasing the aircraft from EFW customer AerCap.

Azul Cargo Express is likely to be the first operator of the A321 freighter in Brazil. It currently operates two aging Boeing 737-400 converted freighters and five light-duty Embraer E195 freighters, which have had seats removed to carry parcels in the cabin. The planes have smoke and fire detection systems, along with a fire suppression system, but have not been fully modified with a large cargo door and other features, as have the A321s, to carry heavy containers.

The cargo division also utilizes Azul’s passenger network to move express parcels and cargo shipments around the country and overseas. The airline, which has 320 retail cargo stores in Brazil and a handful of other countries, says it controls 35% of the domestic air cargo market. One of its primary customers is Amazon.

Startup airline Levu Air Cargo in May received an existing A321 converted freighter on lease from SmartLynx Airlines, but Brazil’s aviation authority didn’t issue the supplemental certificate for the conversion design by U.S.-based 321 Precision Conversions until early September. Flight tracking sites show that Levu has not begun commercial operations. It is unclear why that is, but one possibility is that the company hasn’t received certification from the NCAA to begin commercial air operations.

“The arrival of a new aircraft … means that we are getting closer to offering the best opportunities and much more capacity to serve our current and new customers. These are modern aircraft, with more space, reliability, and the autonomy for international flights. With the two freighters, we will promote a logistical transformation in the country and we are ready to deliver even more agility to Brazilians,” said Izabel Reis, director of Azul Cargo Express.

EFW, a joint venture between Airbus and Singapore-based ST Engineering, has redelivered more than 55 A321 cargo jets since the start of the conversion program in 2020, according to company figures. Its conversion programs are now validated by major aviation authorities from all main continents, enabling airlines around the world to acquire and operate A321 and A330 converted freighters. EFW said it intends to market the A321 freighter across South America. Carriers with EFW A321s include Qantas, Lufthansa Cargo, SmartLynx, Japan Airlines and Miami-based Global Crossing Airlines.

The A321 cargo jets have a maximum payload capacity of more than 30 tons and offer 14 main-deck pallet positions. The planes also are designed to take small containers in the belly hold, but not all airlines choose to use the space in that way for technical reasons. Compared to Azul’s current fleet of 737-400s, the new freighters provide a 39% increase in weight capacity, 50% more volumetric space, a 27% improvement in fuel burned per metric ton transported and the ability to operate them at a higher daily tempo.

In November, Azul opened a new cargo terminal at Vitoria Airport with airside access. The company said the expansion would enable it to handle 432,000 packages per month at the location, up from 393,000 per month. Last year, it also expanded cargo facilities at Congonhas Airport in S?o Paulo and Viracopos.

Azul has said in securities filings this year that it is discussing a possible merger with Gol, Brazil’s second-largest airline by passenger traffic. Gol filed for U.S. bankruptcy protection early this year. Gol also has a new freighter division consisting of six Boeing 737-800 converted freighters, also leased through AerCap, that it operates for South American online retailer Mercado Livre.

Another new entrant to the Brazil air cargo market is Modern Logistics.

Embraer this month received approval from the U.S. Federal Aviation Administration for the engineering design to convert the E190 into a full freighter. Brazil granted a supplemental certificate for the E195 freighter in July.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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