SAO PAULO (Reuters) – Brazil airline Azul SA said on Monday that it is in discussions to join a planned partnership with United Airlines, Avianca Holdings and Copa Holdings for flights between the United States and Latin America.
The three airlines announced their plan to coordinate routes in November 2018, but have yet to receive regulatory approval to go ahead. United owned 8.2% of Azul’s preferred shares last month, according to the Brazilian airline’s website.
(Reporting by Marcelo Rochabrun)
E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos
SAO JOSE DOS CAMPOS, Brazil (Reuters) – Embraer <ERJ> hopes to see more orders for its newest passenger plane by the end of the year, an executive said on Thursday, as Boeing <BA> readies to take over the Brazilian planemaker’s commercial jets division in what could mark the next phase of its rivalry with Airbus <EADSY>.
Manufacture of the E195-E2, as Embraer’s plane is known, will soon be controlled by Boeing, which needs regulatory approval to close on the deal to buy 80% of Embraer’s commercial jets division for $4.2 billion.
Embraer on Thursday delivered its first E195-E2 plane, which will seat about 140, to Brazil’s No. 3 airline Azul <AZUL> at its headquarters in Sao Paulo state. Embraer executives said the delivery should spur more orders, helping to fend off fresh competition from Airbus.
“I expect we will close more transactions, I’m hopeful … before the end of the year,” John Slattery, head of Embraer’s commercial plane division, told Reuters. “I’m not seeing a big wave of people that need to delay, or wish to delay because of the Boeing transaction.”
The new plane comes as the landscape for jets with under 150 seats is changing drastically. Airbus bought control of the Bombardier division competing directly with Embraer in 2018, followed by Boeing’s deal to take over Embraer’s commercial plane division.
The result would expand the global duopoly for jumbo jets into a smaller category, as Boeing and Airbus work to lure orders across a broader lineup of commercial aircraft.
Azul was founded by U.S. airline executive David Neeleman, who also founded JetBlue Airways <JBLU>, which was a launch customer and key customer for Embraer’s last generation of jets.
“We can have 18 more seats with this plane, with a travel cost that is 15% less,” Neeleman said of the improvements in the new generation. “If you have something that is 15% cheaper, you just want that thing, you don’t want anything else.”
STIFF COMPETITION
Embraer is banking on the fuel efficiency of this new generation, to the point it has marketed its E195-E2 to customers as the “profit hunter,” painting the jet with livery resembling a shark in the plane’s nose.
But for now, Embraer has struggled to compete directly with Airbus. Carriers and plane lessors had placed 551 orders for the Airbus A220 family as of June, but Embraer had racked up only 168 for its new family of E2 jets, down from 200 in 2014.
Part of Embraer’s struggles stem from its smaller E175-E2 plane, which has been a hard sell to U.S. regional airlines due to labor contract restrictions. Embraer dropped 100 of those planes from its order book after resistance from pilots made it unclear if buyer Skywest <SKYW> would be able to fly them.
“We didn’t design an aircraft just for the U.S. market,” Slattery said, adding that he hopes his company will secure an order from a customer somewhere else in the world this year. Currently they have none, although Slattery said Skywest remains committed, if pilots allow it.
JetBlue also dealt a blow to Embraer last year when it decided to replace its old Embraer fleet with Airbus A220s, a decade after Neeleman left the company.
JetBlue cited the advantages of A220’s longer range, as well as a broader package with Airbus including larger planes — the kind of arrangement that Boeing could offer with Embraer’s jets in its portfolio.
(Reporting my Marcelo Rochabrun in Sao Jose dos Campos, Brazil; Additional reporting by Allison Lampert in Montreal; Editing by Alistair Bell and Marguerita Choy)
Three weekly flights starting December 16 – the only nonstop from South Florida to Belo Horizonte
SAO PAULO, Aug. 26, 2019 /PRNewswire/ — The city of Belo Horizonte, the state of Minas Gerias and its surrounding cities are now more connected than ever from South Florida. Azul, the largest airline in Brazil in terms of daily departures and destinations served announced today nonstop service from Fort Lauderdale, Florida to Belo Horizonte in Brazil. Tickets are on sale across all Azul sales channels for the three weekly flights beginning December 16, 2019.
Belo Horizonte will be the fourth city served nonstop in Brazil from Fort Lauderdale. This makes Azul the largest Brazilian airline to serve South Florida in terms of destinations served. In addition to these nonstop destinations, Azul customers can conveniently connect to our 94 daily departures to 38 nonstop destinations from Belo Horizonte. Not only customers in South Florida, but all along the East coast from Boston to Raleigh, customers can connect in Fort Lauderdale to Brazil via our interline and codeshare partners in the US.
Fort Lauderdale is the second U.S. destination being served from Belo Horizonteafter Orlando. With the addition of this new flight, the State of Minas Gerais will have six weekly frequencies to the United States onboard our Airbus A330 aircraft, which accommodates up to 298 passengers.
“This announcement further strenghtens our position as Florida’s leading carrier serving Brazil. Together with our interline and codeshare partners, Azul offers unparalleled service from the entire United States, to more than 100 destinations in Brazil. We are sure our customers in the US will enjoy the award winning A330 widebody service, voted several times as the best Business class, and the best Economy class in South America” says Abhi Shah, Azul’s Chief Revenue Officer.
Service from Fort Lauderdale to Belo Horizonte will be operated by A330 widebody aircraft that feature the award winning Azul Business, Azul Economy Extra and Azul Economy. Each seat features inidivual in-seat IFE along with our award winning customer service.
Embraer delivers 26 Commercial and 25 Executive Jets in 2Q19
São José dos Campos, Brazil, July 30, 2019 – Embraer (NYSE: ERJ) delivered a total of 51 jets in the second quarter of 2019 (2Q19), of which 26 were commercial aircraft and 25 were executive jets (19 light and 6 large). As of June 30th, the firm order backlog totaled USD 16.9 billion compared to USD 16.0 billion at the end of 1Q19. Embraer’s 2Q19 backlog increase is largely due to continued market demand, mainly for the new family of Praetor jets in Executive Aviation. See details below:
In the second quarter, Embraer received the Type Certificate for the E195-E2 from three regulatory authorities: ANAC, the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil); the FAA (U.S. Federal Aviation Administration) and EASA (European Aviation Safety Agency). The E195-E2 is the largest of the three members of the E-Jets E2 family of Embraer commercial airplanes.
In the beginning of the 2Q19, Embraer signed a firm order for 10 E195-E2 jets with Air Peace, Nigeria’s largest airline. The contract includes purchase rights for a further 20 E195-E2s. With all purchase rights being exercised, the contract has a value of USD 2.12 billion.
During the 53rd International Paris Air Show, Embraer announced several sales contracts as follows. All values are based on Embraer’s current list prices.
United Airlines signed a contract for up to 39 E175s, comprising 20 firm aircraft and 19 options. The order has a value of USD 1.9 billion with all options being exercised. Binter, of Spain, confirmed the purchase rights for two additional E195-E2s from the original contract signed in 2018. The two new E195-E2s have a value of USD 141.8 million.
Embraer also announced KLM Cityhopper’s intention to purchase up to 35 E195-E2 jets, consisting of 15 firm orders with purchase rights for a further 20 aircraft of the same model. This intention to purchase, which still requires a Purchase Agreement, has a value of USD 2.48 billion.
Embraer announced during the Paris Air Show that it signed a contract with Japan’s Fuji Dream Airlines (FDA) for a firm order of two E175 jets. The order has a value of USD 97.2 million and was already included in Embraer’s 1Q19 backlog as “undisclosed.”
In the executive aviation segment, Embraer received the Type Certificate for the new Praetor 600 super-midsize business jet by the three main world regulatory agencies: ANAC, the FAA, and EASA. The first Praetor 600 was delivered in June to an undisclosed European customer.
Embraer Defense & Security and ELTA Systems Ltd (ELTA), a subsidiary of Israel Aerospace Industries (IAI), signed at the 53rd International Paris Air Show a Strategic Cooperation Agreement to introduce the P600 AEW (Airborne Early Warning). In this cooperation, Embraer is to provide the air platform, ground support, communications systems and aircraft integration while ELTA is to provide the AEW radar, SIGINT (Signals Intelligence) and other electronic systems and system integration.
Embraer Services & Support announced at the Paris Air Show a contract with Azul Linhas Áereas Brasileiras, S.A. for a long-term Flight Hour Pool Program agreement for the carrier’s brand new fleet of Embraer E195-E2 jets. The Company also announced pool maintenance and parts agreements with Helvetic Airways, from Switzerland, and Aurigny Air Services, from the Guernsey Island. During the MRO Americas event, in early April, Embraer also announced support contracts with Air Botswana, Binter, from Spain, and Mauritania Airlines.
World’s number one regional aircraft lessor and world’s number one regional aviation manufacturer sign landmark deal worth over US$ 2 billion
Strategic move from NAC to shape the future with the most eco-responsible and efficient regional aircraft
Paris-Le Bourget, 18 June, 2019 – Regional aircraft leasing specialist NAC and ATR, the world’s number one regional aircraft manufacturer, have today signed a Letter of Intent for 35 firm ATR -600s, with options for a further 35 and purchase rights for another 35. The deal represents a seal of long-term confidence from the number one regional aircraft lessor whose desire to focus on the most efficient and sustainable technology has led them to invest in the ATR 72-600. NAC’s recognition of the quality of the ATR programme also highlights the enduring retained asset value of the -600 series and its value proposition in the market.
Deliveries of the initial 35 aircraft will begin in 2020 and run up to 2025; the delivery schedule is optimised to ensure that market demand is best satisfied over the five-year period. This new deal cements a very successful and longstanding collaboration between NAC and ATR. Since 2010, over 100 speculative ATR aircraft orders were turned into deliveries to NAC.
NAC Chairman Martin Moller said: “To plan for a successful future, it is vital for us to invest in the very best technology, so that we can offer flexible and efficient solutions to our clients. The ATR72-600, with a significant fuel burn advantage drives lower costs and emissions making it the optimal choice for many of our clients. Aviation is moving towards a sustainable future and with this 100+ aircraft deal, we are making a strategic decision to ensure that airlines can lease and operate the most modern and eco-responsible regional aircraft available in the market.”
Stefano Bortoli, Chief Executive Officer of ATR commented: “We congratulate NAC on their forward-looking vision. It is a smart business move from NAC and one very much in line with the trends in regional aviation to connect communities and develop businesses across the globe in the most responsible and cost efficient way. To receive this order from the leading lessor in our segment, validates the value creation and quality of our product and its sustainable credentials and shows the efficiency of turboprop technology going forward. This deal clearly shows where the trend in regional aircraft is going.”
About Nordic Aviation Capital:
NAC is the industry’s leading regional aircraft lessor serving over 76 airline customers in 51 countries. The company provides aircraft to well-established carriers such as British Airways, Air Canada, LOT, Azul, Lufthansa, Garuda, Flybe, Aeroméxico and airBaltic as well as major regional carriers including Air Nostrum and Widerøe. NAC’s current fleet of almost 500 aircraft includes ATR 42, ATR 72, Bombardier Dash 8, CRJ900, CRJ1000, A220, E170, E175, E190 and E195.
About ATR:
ATR is the world number one regional aircraft manufacturer with its ATR 42 and 72 aircraft the best-selling aircraft in the less than 90-seat market segment. In 2018 the company had a turnover of US$1.8 billion. The unifying vision of the company’s 1,400 employees is to help everyone, no matter where they are in the world, to connect and develop in a responsible manner. Thanks to the efficiency of turboprop technology and the benefits of the company’s focus on continuous innovation, ATRs open more than 100 new routes every year, burn 40% less fuel and emit 40% less CO2 than regional jets. For all of these reasons, ATRs have been chosen by some 200 companies in 100 countries around the world. ATR is a joint-venture between Airbus and Leonardo.
The first A330neo of the Americas has been delivered to Azul Linhas Aéreas on lease from Avolon, becoming the first airline from the Americas to fly the A330-900. The aircraft is the first of 15 A330neo ordered by Avolon.
The A330neo, Airbus’ new generation A330 aircraft, will be used by the airline to expand its international route network between Brazil and Europe and the United States. Fitted with a three-class cabin layout accommodating 34 business class, 96 economy Xtra, and 168 economy class seats, the A330neo offers passengers greater comfort along with the newest and the most advanced in-flight experience while the airline will benefit from the aircraft’s unrivalled operating economics.
“We are very proud to be the first A330neo operator in the Americas. This new aircraft will play a key role in the expansion of our international markets supporting our strategy of having a modern and fuel-efficient fleet”, celebrates John Rodgerson, Azul’s CEO.
“With its many new features and an Airspace cabin, the A330neo can only add to Azul’s many travel awards said Christian Scherer, Airbus Chief Commercial Officer. “Innovation packed, superior passenger comfort and 25% fuel efficiency all rolled in to one – that’s the A330neo.”
The A330neo is the true new-generation aircraft building on the most popular wide body A330’s features and leveraging on A350 XWB technology. Powered by the latest Rolls-Royce Trent 7000 engines, the A330neo provides an unprecedented level of efficiency – with 25% lower fuel burn per seat than previous generation competitors. Equipped with the Airbus Airspace cabin, the A330neo offers a unique passenger experience with more personal space and the latest generation in-flight entertainment system and connectivity.
Founded in 2008, Azul is a Brazilian carrier that serves 108 destinations across South America, the United States and Portugal.
Airbus has sold 1,200 aircraft, has a backlog of nearly 600 and nearly 700 in operation throughout Latin America and the Caribbean, representing a 56 percent market share of the in-service fleet. Since 1994, Airbus has secured nearly 70 percent of net orders in the region.
SAO PAULO, May 9 (Reuters) – Brazilian airline Azul SA’s chief executive said on Thursday that its two larger competitors had barred the carrier from providing a competing air shuttle service on the highly profitable Sao Paulo to Rio de Janeiro route.
“Essentially what they did was they had a shutdown plan to keep us out,” CEO John Rodgerson told Reuters in an interview, referring to competitors Gol Linhas Aereas Inteligentes and LATAM Airlines Group.
The comments come weeks after Azul engineered a plan to break into the Sao Paulo-Rio de Janeiro route, by far the most transited in South America, but it fell apart after Gol and LATAM intervened.
The three airlines have been disputing the airport rights set to be left behind by their struggling competitor Avianca Brasil, which was scheduled to auction the routes this week as part of a bankruptcy process.
Azul, Brazil’s No. 3 airline, initially reached a deal with Avianca Brasil, but a few weeks later Gol and LATAM reached a different deal with Avianca Brasil’s key creditors, which was ultimately approved and sidelined Azul.
Both plans hinged on a successful Avianca Brasil bankruptcy auction, but the event was recently suspended indefinitely, meaning that even Gol and LATAM may not be able to get the airport rights they had agreed to buy.
“I don’t think they ever had the intention of closing on the deal,” Rodgerson said of Gol and LATAM’s agreement with Avianca Brasil.
Gol and LATAM have previously denied any anti-competitive stance.
Brazil’s antitrust regulator CADE said in April that it was concerned about a potential takeover by Brazil’s two major airlines, and that it preferred to see Azul or a new airline take over Avianca Brasil’s airport rights.
The rift also led Azul to leave Brazil’s airline industry group, known as ABEAR, late last month.
“I think the way they acted was inappropriate and not in the best interest of the industry,” Rodgerson said. “I don’t think we share the same values.”
Rodgerson gave the interview as part of Azul’s first quarter results announcement, in which higher operational costs weighed significantly, sending profits down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.
While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company, as well as the expiration of a payroll tax incentive.
“It’s kind of the new norm,” Rodgerson said.
Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.
Azul and its Brazilian competitors have faced higher costs in recent quarters due to the continued depreciation of the local currency, the real. While passengers buy their tickets in reais, many of the airline’s expenses, such as fuel, are denominated in the stronger U.S. dollar.
($1 = 3.9393 reais)
(Reporting by Marcelo Rochabrun; editing by Bernadette Baum and Bill Trott)
SAO PAULO, May 9 (Reuters) – Higher operational costs weighed on Brazil’s No. 3 airline, Azul SA, sending profits in the first quarter down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.
While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company.
Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.
Azul and its Brazilian competitors have faced higher costs in recent quarters due to the continued depreciation of the local currency, the real. While passengers buy their tickets in reais, many of the airline’s expenses, such as fuel, are denominated in the stronger U.S. dollar.
Earlier this year, Azul signed a tentative deal that ultimately fell through to take over a set of coveted domestic routes that were to be auctioned off by its rival Avianca Brasil, which is going through a bankruptcy protection process.
The routes were then set to go to its two larger competitors, Gol Linhas Aereas Inteligentes and LATAM Airlines Group, dealing a blow to Azul as it had hoped to break into the lucrative Sao Paulo-Rio de Janeiro route.
That route is currently dominated by Gol and LATAM and is considered to be among the most profitable in the country.
At the last minute, a judge indefinitely suspended Avianca’s auction which was due earlier this week.
($1 = 3.9273 reais) (Reporting by Marcelo Rochabrun; Editing by Bernadette Baum)
Toulouse, 23 April 2019 – Silver Airways yesterday launched its regularly scheduled flights aboard its new ATR -600 series aircraft. The first flight departed Fort Lauderdale-Hollywood International Airport at 10:40 a.m. and arrived at Key West International Airport at 11:55 am (EST).
Silver Airways, America’s leading independent regional airline, is reinventing the regional flying sector by being the first U.S. carrier to operate the technologically advanced, customer friendly ATR -600 series aircraft. Silver Airways has taken delivery of three new ATR 42-600 aircraft from NAC. The aircraft is specifically designed for short-haul markets, but with the same look, feel and customer amenities of larger jetliners. Yesterday marked the first time revenue passengers have flown on an ATR 42-600 operated by a U.S carrier.
The new aircraft are allowing Silver to expand its service in the South Eastern United States, the Bahamas and the Caribbean. By initially introducing the mission-specific ATR 42-600 aircraft, with seating for 46, Silver now has the unique ability to offer quicker direct flights to even more short and medium-haul leisure and business destinations in both domestic and nearby international markets.
“This is truly a great day for Silver Airways, ATR, Nordic Aviation Capital and our customers that would not have been possible without the hundreds of dedicated men and women of Silver Airways and Seaborne Airlines who have worked tirelessly over the past year to arrive at this historic moment,” said Silver Airways and Seaborne Airlines CEO Steve Rossum. “The new ATR 42-600 series aircraft will be transformational for Silver Airways and is ideal for our short-haul domestic and nearby international operations. The state-of-the art aircraft allows for a safe, highly reliable and efficient fleet operation and a superior overall experience for our guests.”
“We are proud to see the ATR -600 aircraft take flight in the U.S. and to introduce the most modern standards of passenger experience and regional aircraft with our valued partner Silver Airways,” said ATR Chief Executive Officer Stefano Bortoli. “We are grateful to our friends at Silver for being our U.S. launch customer; leading what we expect to be a new wave of eco-responsible and passenger-friendly regional travel and the return of the ATRs in the U.S.”
“Nordic Aviation Capital is proud of its relationship with Silver Airways, and we are particularly pleased to be part of their great success story,” said Martin Moller, Chairman of Nordic Aviation Capital. “The introduction of the ATR -600 series represents an essential milestone for them. We are congratulating Silver Airways on their service expansion and look forward to continuing our outstanding relationship with them for many years to come.”
Silver Airways has taken delivery of three of up to 50 new ATR 42-600 series aircraft, including an initial order for 20 ATR -600 aircraft split among the 46-seat ATR 42s and the 70-seat ATR 72s. As the world’s leading regional flying aircraft, the new ATRs will provide Silver’s passengers unparalleled experience and reliability and pilots the industry’s most advanced cockpit.
Silver intends to take delivery and begin operating five more ATR 42-600s in 2019, and subject to regulatory approval, the airline is planning to take delivery of at least three ATR 72-600s this year. All of the initial 20 aircraft are expected to be in service by 2020.
About Silver Airways Silver Airways operates the most routes within Florida and between Florida and the Bahamas from its hubs in Fort Lauderdale, Orlando and Tampa, and also flies between Boston and Bar Harbor, Maine. Silver is the official airline of the Minor League Baseball team Daytona Tortugas and the Pensacola Blue Wahoos. In addition, Silver owns and cooperatively operates Seaborne Airlines with flights in Puerto Rico, the Virgin Islands and the Caribbean. Silver is a codeshare partner with United, JetBlue and Avianca, and has interline agreements with American, Delta, Air Canada, Alaska Airlines, All Nippon Airways, Bahamasair, Hahn Air, Azul and Emirates. Members of United’s MileagePlus® and JetBlue’s TrueBlue loyalty programs can also earn frequent flyer awards for travel throughout Silver’s network. Silver operates a fleet of highly-reliable Saab 340 aircraft and is also currently renewing and expanding its fleet with up to 50 new eco-friendly ATR -600s. Silver is honored to be the North American launch customer for the all new ATR -600 offering best-in-class quiet cabins, premium leather seats with more legroom, and spacious overhead bins that accommodate full-size, carry-on roller bags. Silver is owned by affiliates of Philadelphia-based investment firm Versa Capital Management, LLC. To learn more about Silver’s refined passenger experience, visit www.silverairways.com/destinations/atr42.
About ATR:
European turboprop manufacturer ATR is the world leader in the regional aviation market. ATR designs, manufactures and delivers aircraft, with its fleet encompassing some 200 airlines in nearly 100 countries. The ATR 42 and the ATR 72 are the best-selling aircraft in the below 90-seat category. With continuous improvement as a driving force, ATR produces cutting edge, comfortable and versatile turboprops that help airlines expand their horizons by creating more than 100 new routes every year. Compared with other turboprops, ATRs offer an advantage of 40% on fuel burn, 20% on trip cost and 10% on seat cost, whilst offering the lowest noise emissions. ATR is an equal partnership between leading aerospace firms Airbus and Leonardo and benefits from a large global customer support network allowing it to deliver innovative services and solutions to its clients and operators all over the world. For more information, please visit http://www.atr-aircraft.com. Follow us on Twitter – #ATRLeads
SAO
PAULO, March 11 (Reuters) – Brazilian airline Azul SA said on Monday it
intends to pay $105 million for certain assets held by Avianca Brasil,
which was headed to court to face aircraft lessors as it seeks to keep
operating planes despite mounting late payments.
Azul
said the non-binding purchase agreement would involve 70 pairs of
slots, which grant airlines the rights to operate regular flights
between airports.
Azul
already operates two Airbus A320 planes that were previously used by
Avianca Brasil until they were repossessed in December due to
outstanding payments. Under the agreement announced on Monday, Azul said
it could end up operating up to 30 Airbus planes currently in use by
its rival.
Azul
did not disclose how it would be able to take over the leases and the
airline did not immediately respond to a request for comment.
Avianca
Brasil filed for bankruptcy protection in December in an attempt to
stall aircraft lessors who had sued to repossess its fleet, two months
after the carrier started missing payments on many of its aircraft.
The
Avianca Brasil hearing scheduled for Monday in an appeals court will
deal with a request from aircraft lessors, including Aircastle, that
planes be repossessed as soon as possible, after a bankruptcy judge
extended the airline’s control over the aircraft until at least April.
Since filing for bankruptcy, Avianca Brasil has secured a $75 million loan from hedge fund Elliot Management.
(Reporting by Marcelo Rochabrun and Ana Mano Editing by Chizu Nomiyama and Bill Trott)
Azul Linhas Aereas Embraer 195 at Curitiba Airport, Brazil
