Tag: Brazil (Page 14 of 15)

Gol Says Brazil’s Foreign Qwnership Ban Is Outdated

November 14, 2018 / WIL BALDWIN

NEW YORK, Nov 14 (Reuters) – Decades-old regulations barring foreigners from owning Brazil’s airlines are outdated and “might make no sense anymore,” the top executive of Brazil’s largest airline, Gol Linhas Aereas Inteligentes SA, said on Wednesday.

Foreigners are limited by law to a 20 percent stake in any Brazilian airline’s voting stock. But while Brazil may be entering an economic liberalization phase – far-right President-elect Jair Bolsonaro has vowed to cut spending and privatize state companies – Gol Chief Executive Officer Paulo Kakinoff said it is unclear whether the new administration will seek to loosen the existing regulations.

“Our company has always been in favor of bringing to our country all the conditions to have access to foreign capital without any kind of restriction,” Kakinoff told Reuters in an interview. “This should be one of the positive effects of having some change in the current legislation.”

Outgoing President Michel Temer has said he is in favor of allowing full foreign ownership. In 2017, he said he would enact this change through executive action, only to change his mind and submit a bill to Congress, where the plan has stalled.

Kakinoff added that Gol is not currently in talks with Delta Air Lines Inc, which owns a 9.5 percent stake in Gol preferred shares, or any other entity, about taking a bigger stake in the Brazilian carrier.

In October, Gol said it planned to acquire full control of its listed loyalty program, a subsidiary called Smiles Fidelidade SA.

Gol’s stock surged in response, while Smiles’ plummeted almost 40 percent in one day.

Gol Chief Financial Officer Richard Lark said the airline needed to incorporate Smiles to avoid “competitive disadvantages,” especially with its largest local rival, Latam Airlines Group SA, which earlier this year decided to gobble up its loyalty program company, called Multiplus SA.

A key difference in the transactions, however, is that Latam offered cash to investors, while Gol is offering only its own preferred stock, with the exchange ratio yet to be defined.

Some minority shareholders have criticized the transaction, saying they will lose voter rights if their Smiles shares are exchanged for Gol shares, a charge the airline disputes.

“Although the company owns preferred shares in the operational company, decisions about the airline and the loyalty program will continue to be taken at the board of Gol. It won’t be a shell company,” Lark said.

Reporting by Marcelo Rochabrun; Editing by Dan Grebler

Image from www.voegol.com

Azul and Copa Airlines Announce Codeshare Agreement

November 8, 2018 / WIL BALDWIN

Customers can conveniently connect to Azul’s unrivaled domestic network when flying
Copa into and out of Brazil; in addition to the codeshare agreement, Azul and Copa also
announce today the launch of their frequent flyer cooperation agreement.

São Paulo, November 8, 2018 – Azul Brazilian Airlines and Copa Airlines have announced today a broad cooperation agreement that will connect the two largest route networks in Latin and South America. As part of this agreement, customers can conveniently connect to Azul’s unrivaled domestic network when flying Copa into and out of Brazil. This agreement means that Copa customers can now potentially access all of Azul’s 101
domestic destinations in Brazil, including 52 destinations not served by any other airline. In the near future, Azul will also place its code on Copa flights into and out of its Panama city hub, allowing Azul’s domestic customers to take advantage of the broadest network in Latin America. The benefits and convenience of a codeshare ticket include those of thru check-in and thru-baggage.

In addition to the codeshare agreement, Azul and Copa also announce today the launch of their frequent flyer cooperation agreement. Starting in December, members’ of TudoAzul, Azul’s loyalty program, and ConnectMiles, Copa’s loyalty program can now easily earn frequent flyer points when flying either airline.

“Copa Airlines is always looking for partnerships to offer the best travel experience and enhance our route network for our customers. This new partnership with Azul reinforces the company’s presence in Brazil as well as expands our connectivity domestically in this important country”, said Dennis Cary, Commercial and Planning Senior Vice President, Copa Airlines.

“This codeshare agreement also allows us to offer more flight options to major cities in the Brazilian southeastern and northeastern regions to which we currently do not fly and which, through our Hub of the Americas, will be connected with Panama and the rest of the American continent bringing more opportunities and economic development to these cities”, added Cary.

Operational excellence is embedded deep within the DNA of both Copa and Azul. “In addition to the broad portfolio of destinations, this codeshare brings together two of the most on-time airline in the world. Copa is the most on-time airline in Latin America while Azul is the most punctual in Brazil. This ensures the best possible experience for our connecting customers”, highlights Shah.

Once the agreement is approved by the regulatory authorities, Customers of both airlines will be able to enjoy all these benefits.

Story from voeazul.com

American Airlines Buys Additional Embraer E175 Jets

November 5, 2018 / WIL BALDWIN

São José dos Campos, Brazil, November 5, 2018 – Embraer and American Airlines Inc. signed a firm order for 15 E175 jets in a 76-seat configuration. The contract has a value of USD 705 million, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog. Deliveries will take place in 2020.

Combined with the airline’s previous orders for the E175, this new contract results in a total of 104 E175 jets for American Airlines since 2013. The most recent order took place in May 2018 for 15 aircraft.

American Airlines selected Envoy, a wholly owned subsidiary of American Airlines Group, to operate the 15 aircraft, which will be configured with a total of 76 seats, being 12 in First Class and 64 in Main Cabin, including Main Cabin Extra seats.

“This new order from American Airlines continues to show the value that airlines place on our best-selling E175 aircraft,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “We are fully committed to providing fleet solutions that have a positive bottom line impact, and our E175 leads the charge with over 80 percent market share in the North American market.”

Including this new contract, Embraer has sold more than 435 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.

Embraer is the world’s leading manufacturer of commercial jets up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,400 deliveries, redefining the traditional concept of regional aircraft.

image and story from www.embraer.com

New Brazil President Bolsonaro OK With Embraer-Boeing Deal

October 29, 2018 / WIL BALDWIN

RIO DE JANEIRO, Oct 29 (Reuters) – Brazilian President-elect Jair Bolsonaro has a positive view of a proposed commercial aviation partnership between Boeing Co and local aircraft maker Embraer SA, Bolsonaro’s choice for defense minister told Reuters on Monday.

Former General Augusto Heleno said the deal could be cleared by the current administration of President Michel Temer, although Bolsonaro’s team would like to see details of the proposed joint venture.

“It’s not that the government is leaving and so it cannot take any action,” Heleno said, referring to the outgoing Temer administration. “If we had a conversation and we reached a conclusion, ‘Look, everything’s good, this is worth it,’ we don’t have to keep waiting,” Heleno said.

Embraer reached a preliminary agreement in July to sell 80 percent of its commercial jet division to Boeing in a venture valued at $4.75 billion. The deal has not closed yet, in part because Brazil’s government holds a “golden share” that grants it veto power over strategic business decisions at Embraer.

Last week, the current defense minister, Joaquim Silva e Luna, told Reuters that Brazil’s next president would be presented with the details of the deal.

(Reporting by Rodrigo Viga Gaier and Ricardo Brito Writing by Marcelo Rochabrun; Editing by Steve Orlofsky)

Image from www.embraer.com

Embraer Delivers 15 Commercial, 24 Executive Jets In Q3

October 19, 2018 / WIL BALDWIN

Embraer has released the following press announcement on its website:

São José dos Campos, Brazil, October 19th, 2018 – During the third quarter of 2018 (3Q18), Embraer (NYSE: ERJ; BM&FBOVESPA: EMBR3) delivered 15 jets to the commercial aviation market and 24 business jets, being 17 light jets and 7 large jets. On September 30, Embraer’s firm order backlog totaled USD13.6 billion.

Regarding the commercial aviation market, Embraer forecasted in its Market Outlook a demand for 10,550 new aircraft with up to 150 seats worldwide over the next 20 years,. The in-service fleet is set to increase to 16,000 aircraft, up from the 9,000 aircraft currently in operation. Market growth will drive 65% of this demand, while the remaining 35% of the projected demand will be to replace ageing aircraft.

Embraer and Helvetic Airways signed a contract for a firm order of 12 E190-E2 jets during 3Q18. The agreement was announced at the Farnborough Airshow in July as a Letter of Intent. The contract also includes purchase rights for another 12 E190-E2 aircraft, with the possibility of conversion to the E195-E2 model, raising the order potential for up to 24 aircraft. Deliveries should occur between the end of 2019 and 2021. Also in Farnborough, United Airlines made a firm order for 25 E175 jets in a 70-seat configuration. Deliveries will begin in the second quarter of 2019.

In 3Q18, Embraer also signed a contract with an undisclosed customer for up to five E195-E2s, being three firm orders and two purchase rights. This agreement was previously announced as a Letter of Intent (LoI) during the Farnborough Airshow. In addition, the Company continues to work on finalizing its recent LoI signed at the Farnborough Airshow for 100 E175 aircraft for Republic Airways, with the expectation that a significant portion of these jets should enter the Company’s backlog by the end of 2018.

A total of 134 jets were removed from Embraer’s backlog in 3Q18. The majority of these planes belong to an order placed by Skywest for 100 E175-E2s, and were removed largely due to IFRS accounting changes. Given current timing uncertainty of the scope clause changes in the U.S. market to allow the heavier E175-E2 to be flown by regional airlines under capacity purchase agreements (CPAs) for mainline airlines, Embraer has proactively adopted best practices to align with the latest IFRS principles and remove the order from backlog given its conditionality terms. Skywest remains committed with the E175-E2 order and its terms are unchanged. The other 34 jets that were removed from the Company’s backlog in 3Q18 are related to cancellations, including an order for 24 E190 jets that were cancelled by JetBlue following its recent fleet renewal decision.

In the business jets segment, Embraer first exhibited the Phenom 100EV, Phenom 300E and Legacy 650E aircraft with full interior at Labace, the largest Latin American executive aviation fair which took place in São Paulo in August. Embraer also delivered its first Phenom 300E in Asia Pacific.

Embraer Services & Support signed relevant agreements in Europe and Africa during the quarter. LOT Polish Airlines, the national carrier of Poland and leading airline in Central Europe, signed an extension of its pool agreement to support LOT’s fleet of 34 Embraer E-Jets. Kenya Airways also joined a service program whereby Embraer will take over the planning and replenishment of a sizeable portion of Kenya Airways’ spare parts stock covering the 15 Embraer E190 aircraft operated by the airline. Sahara Africa Aviation also signed a multi-year Pool Program Agreement for spare parts and support covering more than 500 components for their two recently acquired Embraer ERJ 145 jets.

Story and image from http://www.embraer.com

Boeing, Embraer To Build KC-390 Military Cargo Jet

October 1, 2018 / WIL BALDWIN

RIO DE JANEIRO, Oct 1 (Reuters) – U.S. planemaker Boeing and Brazil’s Embraer are in talks to set up an assembly line to build KC-390 military cargo jets in the United States, Brazilian newspaper Valor Economico reported on Monday.

In July, the two planemakers announced a deal to give Boeing an 80 percent stake in Embraer’s commercial aircraft arm, marking the biggest realignment in the global aerospace market in decades.

At the time, the companies also announced a deeper sales and services partnership on the new KC-390 military cargo jet through a separate defense venture that they said was likely to eventually receive a joint investment.

According to the report on Monday, which did not detail how the paper obtained the information, the two companies intend to create a defense-related joint venture to install the factory, which would be the second to produce the plane.

Such a partnership would give Boeing a newly designed, U.S.-built tactical transport plane to sell directly against rival Lockheed Martin’s workhorse Hercules C130.

The companies did not immediately respond to requests for comment. The move would allow the planemakers to grow their collaboration in the defense realm, after Boeing’s original takeover bid snagged on Brazilian concerns about it gaining control of national defense programs. (Reporting by Alexandra Alper Editing by Susan Thomas)

Image from www.embraer.com

David Neeleman Planning New US Budget Airline

June 18, 2018 / WIL BALDWIN

(Reuters) – WestJet Airlines Ltd and JetBlue Airways Corp founder David
Neeleman is planning to launch a new budget airline in the United States,
with $100 million in startup capital, according to a report from the Airline
Weekly.

The airline, tentatively called Moxy, has secured orders for 60 Bombardier
CS300 aircraft, the publication said, citing people familiar with the matter.
(https://bit.ly/2HYULKP)

The report also said that former Air Canada Chief Executive Officer Robert
Milton and former International Lease Finance Corp CEO Henri Courpron are
among early investors along with Neeleman himself.

Bombardier declined to comment on the report, while Neeleman was not
immediately available for comment.

(Reporting by Karan Nagarkatti in Bengaluru; Editing by Shounak Dasgupta)

Boeing, Brazil’s Embraer close to tie-up

April 20, 2018 / WIL BALDWIN

FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company’s headquarters in Sao Jose dos Campos, Brazil, February 28, 2018. REUTERS/Roosevelt Cassio/File Photo

SAO PAULO (Reuters) – Talks aimed at a tie-up between planemakers Boeing Co (BA.N) and Embraer SA (EMBR3.SA) that also involve Brazil’s government are at an advanced stage, O Estado de S. Paulo newspaper reported on Friday, citing unnamed sources.

The Boeing and Embraer partnership would create a new company in which the U.S. planemaker would have an 80.01 percent stake and the Brazilian firm 19.99 percent, the paper said, adding this was a model supported by the Brazilian government.

Boeing, Embraer and Brazil’s Defense Ministry did not have an immediate comment on the report.

The two jet manufacturers said in December they were discussing “a potential combination,” but the Brazilian government, which holds veto power over strategic moves at Embraer, needs to approve the deal.

The paper said one of the points still under discussion was the appointment of a government representative to the board of the new company. Boeing is against this, O Estado said, but the Brazilian government is strongly in support of the move.

The joint venture will only include Embraer’s commercial jet operation, and exclude its defense and executive jet businesses, O Estado said. Boeing’s initial expectation was to include all three Embraer business units in the tie-up, the paper said.

(Reporting by Ana Mano; Editing by Bernadette Baum)

Embraer Delivers 25 Jets in 1Q18

April 16, 2018 / WIL BALDWIN

SAO JOSE DOS CAMPOS, Brazil, April 16, 2018 /PRNewswire/ — During the first quarter of 2018 (1Q18), Embraer (NYSE: ERJ; BM&FBOVESPA: EMBR3) delivered 14 jets to the commercial aviation market across the U.S., Europe and Asia Pacific. In the business aviation market, 11 aircraft were delivered in the same period, being eight light jets and three large jets.

See the details below:


Deliveries by Segment	1Q18

*Commercial Aviation*	14
EMBRAER 175 (E175)	11
EMBRAER 190 (E190)	3

*Executive Aviation*	11
Phenom 100	3
Phenom 300	5
Light Jets	8
Legacy 450	2
Legacy 500	1
Large Jets	3

TOTAL	25

With respect to the Company’s consolidated firm order backlog value in USD, Embraer will be releasing the value of its consolidated 1Q18 backlog together with the 1Q18 earnings results on April 27, 2018, as it is now part of the Financial Statements according to the new IFRS 15 requirements.

The quarter’s main highlight was the triple certification for the E190-E2, the first member of the E-Jets E2 family of commercial aircraft, from the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil – ANAC), the FAA (Federal Aviation Administration) and EASA (European Aviation Safety Agency). It is the first time that an aircraft program with the level of complexity of the E2 receives a type certificate from three major worldwide certification authorities simultaneously. Before the certification, Embraer announced some final flight tests results confirming the E2 as the most efficient single-aisle aircraft on the market. In fuel consumption, the E190-E2 proved to be 1.3% better than originally expected, a 17.3% improvement compared to the current- generation E190.

The E190-E2 also becomes the most environmentally friendly aircraft in its class, with the lowest levels of external noise and emissions. Flight test results also confirmed the E190-E2 to be better than its original specification in takeoff performance. The aircraft’s range from airports with hot-and-high conditions, such as Denver and Mexico City, increases by 600 nm compared to current-generation aircraft. Its range from airports with short runways, such as London City, also increases by more than 1,000 nm allowing the aircraft to reach destinations like Moscow and cities in the north of Africa.

The E190-E2 will also have the longest maintenance intervals among single-aisle aircraft with 10,000 flight hours for basic checks and no calendar limit for typical utilization. This means an additional 15 days of aircraft utilization over ten years compared to current generation E-Jets. Another key gain is with pilot transition training time. Pilots of current-generation E-Jets will need only 2.5 days of training and no full flight simulator to be qualified to fly an E2.

Embraer Defense & Security announced, at the Singapore Airshow, the signing of a Letter of Intent with aviation services company SkyTech for up to six new KC-390 multi-mission transport aircraft. The aircraft are earmarked for multiple defense projects and both companies have also agreed on a potential strategic collaboration to jointly explore new business opportunities in training and services.

During 1Q18, Embraer delivered the first new Phenom 300E business jet after receiving certification from the U.S. Federal Aviation Administration (FAA), the European Aviation Safety Agency (EASA), and the Brazilian Civil Aviation Agency (ANAC – Agência Nacional de Aviação Civil). The new light jet model was launched—and debuted—at the 2017 National Business Aviation Association’s Business Aviation Conference and Exhibition (NBAA-BACE), in October 2017.

Boeing proposes up to 90% stake in new Embraer

February 6, 2018 / WIL BALDWIN

BRASILIA (Reuters) – Boeing Co has presented a plan to Brazil’s government that would give it an 80 to 90 percent stake in a new venture encompassing Embraer SA’s commercial jet business, a Brazilian newspaper reported on Tuesday.

The plan Boeing presented to the government on Thursday would let it take over Embraer’s commercial operations via the creation of a new company, with defence operations remaining under the Brazilian planemaker’s control in order to meet government demands, Valor Economico reported, without citing a source.

Reuters previously reported on Friday that Boeing was seeking approval in Brasilia for a plan creating a new joint company excluding defence operations.

Valor reported that under the proposal Boeing would pay Embraer in cash when the commercial assets are transferred to the new company, with most of the proceeds then distributed to shareholders as dividends.

Boeing’s tie-up with Embraer, the world’s third-largest planemaker, would give it a leading share of the 70- to 130-seat market, meaning stiffer competition for Bombardier Inc and Airbus SE’s joint CSeries programme.

Embraer would retain the defence business that generates almost nothing in earnings before interest, taxes, depreciation and amortisation. Shareholders would also have 10 to 20 percent of the commercial activities transferred to the new company and be entitled to dividends.

The deal would maintain the government’s so-called golden share in Embraer, a former state enterprise, giving it veto power over certain strategic decisions, including Boeing’s current push for a tie-up.

The plan – if supported by the government and Embraer – could be presented to shareholders for approval as soon as the second quarter, the newspaper said. Further meetings between Boeing and the government will not occur until after the Carnival holiday, which ends next week, it reported.

Boeing and Embraer did not immediately respond to requests for comment.

(Reported by Jake Spring; Edited by Kirsten Donovan)

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