Tag: Sao (Page 3 of 3)

Azul Says Rivals Blocked Carrier From Profitable Route

May 9, 2019 / WIL BALDWIN

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)

Brazil Airline Azul’s Profits Drop 20% on Higher Expenses

May 9, 2019 / WIL BALDWIN

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.

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)

Avianca Brazil Gives Up 18 Planes, Cancels 1,045 Flights

April 22, 2019 / WIL BALDWIN

RIO DE JANEIRO (AP) — Avianca Brasil canceled more than 1,045 domestic flights this week because it has to return 18 aircraft to leasing agencies.

Brazil’s National Aviation Agency said the planes needed to be returned Monday to avoid affecting Holy Week holiday passengers. Customers can either get refunds for canceled flights or rebook through partner airlines.

Avianca Brasil declined to say how many planes it has left. But the G1 news portal reports that the airline has just seven planes still in its fleet.

On April 1, the airline canceled several international routes from Sao Paulo to New York, Miami and Santiago, Chile.

Avianca Brasil filed for bankruptcy in December after failing to pay leases on its aircraft. The airline, formerly known as Ocean Air, has licensed the name Avianca since 2010 from Colombian carrier Avianca Holdings SA. They are separate companies with the same owners: brothers German and Jose Efromovich. The latter is being investigated for allegedly failing to pay airport fees in Salvador airport in northeastern Brazil.

A company representative from Avianca’s headquarters in Colombia stressed that the Brazilian company is independent from Avianca Holdings group, both operationally and financially. The company said in a statement that flights operated by Avianca Holdings SA from hubs in Bogota and Lima, Peru, to destinations in Brazil will not be affected by the Avianca Brasil cancellations.

Airbus A320 Neo of Avianca at GRU Airport – Guarulhos International Airport, Sao Paulo, Brazil – 2017

Embraer Praetor 600 Business Jet Outperforms on Certification

April 19, 2019 / WIL BALDWIN

São Paulo, Brazil, April 18, 2019 – Embraer announces that the company’s new Praetor 600 super-midsize business jet was granted its Type Certificate by Brazil’s Civil Aviation Authority (ANAC—Agência Nacional de Aviação Civil), having been announced in October 2018 at NBAA-BACE and becoming the only super-midsize business jet to be certified since 2014.

The Praetor 600 is the best performing super-midsize jet ever developed, surpassing all its main design goals and becoming capable of flying beyond 4,000 nautical miles in long-range cruise speed or beyond 3,700 nautical miles at Mach .80 from runways shorter than 4,500ft, complemented by an outstanding payload capability.

“Our engineering and program teams have outperformed again by passionately designing, developing and certifying the class-leading Praetor 600 business jet, exceeding specifications and expectations, and ahead of schedule,” said Paulo César Souza e Silva, Embraer CEO. “This advanced aircraft reflects not only our journey of innovation, it is also a preview of the future of this great company.”

“The most disruptive and technologically advanced super-midsize business jet has arrived. The Praetor 600 will fascinate our customers with the highest performance, technology and comfort in its class and raise the customer experience to an unprecedented level,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “I want to thank and congratulate the Embraer family for bringing to market an aircraft that will create true value for customers and shareholders alike.”

The Praetor 600 is now the farthest-flying super-midsize jet, able to make nonstop flights between London and New York, São Paulo and Miami, Dubai and London. With four passengers and NBAA IFR Reserves, the Praetor 600 has an intercontinental range of 4,018 nautical miles (7,441 km). Take Off Field Length for such a mission is only 4,436 ft (1,352 m). At M0.80, range is 3,719 nm (6,887 km) with four passengers and NBBA IFR Reserves.

The Praetor 600 is the first super-midsize jet with full fly-by-wire technology, which powers the Active Turbulence Reduction that not only makes every flight the smoothest but also the most efficient possible.

The Embraer DNA Design interior eloquently explores every dimension of the only super-midsize to feature a six-foot-tall, flat-floor cabin, stone flooring and a vacuum service lavatory, all in the same certified aircraft. The class-exclusive Active Turbulence Reduction and 5,800-foot cabin altitude, complemented by a whisper silent cabin, have set the highest standards in customer experience in the super-midsize category. In addition to the full-service galley and a wardrobe, eight fully reclining club seats may be berthed into four beds, and the baggage space is the largest in the class.

Advanced technology throughout the cabin is also a trait of the Embraer DNA Design, beginning with the industry-exclusive Upper Tech Panel that displays flight information and offers cabin management features also available on personal devices through Honeywell Ovation Select. High-capacity, ultra high-speed connectivity for all aboard is available through Viasat’s Ka-band, with speeds of up to 16Mbps and unlimited streaming, another industry-exclusive in super-midsize jets.

The Praetor 600 features Collins Aerospace’s newest edition of the acclaimed Pro Line Fusion flight deck. Capabilities such as the industry-first vertical weather display, air-traffic-control-like situational awareness with ADSB-IN, predictive wind shear radar capability, as well as Embraer Enhanced Vision System (E2VS) with a Head-up Display (HUD) and an Enhanced Video System (EVS), an Inertial Reference System (IRS) and a Synthetic Vision Guidance System (SVGS) are some of the highlights on the Praetor 600 flight deck.

SPECIFICATIONS	CERTIFIED AIRCRAFT	DESIGN GOALS
Range 4 pax @ LRC⁽¹⁾	4,018 nm / 7,441 km	3,900 nm / 7,223 km
Range 4 pax @ M0.80⁽²⁾	3,719 nm / 6,888 km	3,605 nm / 6,676 km
Takeoff distance @ 4 pax / full fuel⁽³⁾	4,436 ft / 1,352 m	4,458 ft / 1,359 M
Takeoff distance @ MTOW⁽⁴⁾	4,717 ft / 1,438 m	4,800 ft / 1,463 m
Unfactored landing distance⁽⁵⁾	2,165 ft / 660 m	2,270 ft / 692 m
Maximum operating altitude	45,000 ft / 13,716 m	45,000 ft / 13,716 m
Maximum payload⁽⁶⁾	4,001 lb / 1,815 kg	4,001 lb / 1,815 kg
(1) NBAA IFR reserves; 200 nm alternate; 4 pax @ 200 lbs each; baseline aircraft; LRC (Long Range Cruise)
(2) NBAA IFR reserves; 200 nm alternate; 4 pax @ 200 lbs each; baseline aircraft; M0.80
(3) SL; ISA ; full fuel; 4 pax @ 200 lbs each; NBAA IFR reserves; 200 nm alternate; baseline aircraft;
(4) SL; ISA; MTOW
(5) SL; ISA ; 4 pax @ 200 lbs each; NBAA IFR reserves; 200 nm alternate; baseline aircraft
(6) Baseline aircraft

Brazil’s Gol Will Not Cancel Boeing 737 MAX Order

April 2, 2019 / WIL BALDWIN

FILE PHOTO: An aircraft of Gol Linhas Aereas Inteligentes SA departs from Congonhas airport in Sao Paulo, Brazil September 11, 2017. REUTERS/Paulo Whitaker

SAO PAULO (Reuters) – Brazil’s largest airline, Gol Linhas Aereas Inteligentes, will not cancel its orders of Boeing Co’s 737 MAX plane, the model which was involved in two fatal crashes, newspaper Valor Economico reported Gol’s chief executive as saying on Tuesday.

“We will not cancel our orders,” CEO Paulo Kakinoff said. “The 737 MAX is probably the best airplane ever made.”

Gol is going through a significant fleet transformation and has bet heavily on the Boeing 737 MAX, with over 100 planes scheduled to be delivered in the next few years.

The airline has so far received seven aircraft, which it grounded after an Ethiopian Airlines plane crashed in March, the second accident involving that plane model in a span of five months.

Kakinoff added that he thinks it is possible that the 737 MAX planes will fly again by July. That decision is in the hands of regulators around the world.

Gol has flown Boeing planes exclusively since its founding and is the U.S. planemaker’s largest client in Latin America.

(Reporting by Marcelo Rochabrun; Editing by Lisa Shumaker and Susan Thomas)

Embraer Announces CEO Succession

March 20, 2019 / WIL BALDWIN

Paulo Cesar de Souza e Silva concludes his tenure at the end of April and will support the transition process of the company as Senior Advisor of the Board of Directors.

São Paulo, Brazil, March 18, 2019 – Embraer, following shareholder approval of the transaction with Boeing, announces that the current President and CEO of the company, Paulo Cesar de Souza e Silva, concludes a successful professional cycle with the company on April 22, 2019 which is the end of his current two year elected term.

“Paulo Cesar idealized the partnership with Boeing and led the negotiation process of the transaction that will bring Embraer and Brazil to a much more competitive and prominent level in the global aviation industry,” said Alexandre Silva, Chairman of the Board.

For 22 years at Embraer, Paulo Cesar came from the financial market to structure the company’s sales financing area. For six years he was President and CEO of Commercial Aviation and in 2013 launched the E2 Program, the medium-sized commercial jets considered today to be the most efficient in the market.

In 2016, Paulo Cesar became President and CEO of the Embraer Group, with a mission to make the company more efficient, competitive and better prepared to face structural changes in the global aviation market.

His administration established three key initiatives focused on value creation and the sustainability of the company. The first was the transaction with Boeing. The second was the creation of the Passion for Excellence program, a structural transformation project focused on reducing costs and increasing operational efficiency, generating significant annual recurring savings. The third was the creation of EmbraerX, responsible for disruptive innovation and the development of opportunities for the future, such as eVTOL (electric vertical take-off and landing vehicle), a project that will revolutionize urban transport in partnership with Uber.

“Without the support of the Board and Embraer’s 18,000 employees and colleagues, none of our achievements would have been possible”, noted Paulo Cesar. “We are challenged to remain at the forefront of engineering and operations. In Executive Aviation and Defense, and with the KC 390 joint venture with Boeing, we will expand our international competitiveness and everything indicates that we will have another 50 years of success ahead.” And he added: “I am sure that the new leadership of the company will find fertile ground ahead to expand and consolidate Embraer.”

Paulo Cesar was invited to be a Senior Advisor to the Board, with the task of facilitating the integration of the future President and CEO and advising the Board on the monitoring of assets and resources segregation, an integral part of the process of concluding the partnership with Boeing. As it was reported, 96.8% of Embraer’s shareholders approved an agreement with the North American company last February, which should be concluded after obtaining all approvals of the Regulatory and Competitive Agencies in Brazil and abroad.

Embraer also informs that the future President and CEO, to be elected for the next term, will be recruited externally and announced on or before the Ordinary General Assembly on April 22nd.

About Embraer

Embraer is a global company headquartered in Brazil with businesses in commercial and executive aviation, defense & security. The company designs, develops, manufactures and markets aircraft and systems, providing customer support and services. Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. About every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.

Embraer is the leading manufacturer of commercial jets up to 150 seats. The company maintains industrial units, offices, service and parts distribution centers, among other activities, across the Americas, Africa, Asia and Europe.

Boeing CFO Greg Smith (left), Boeing CEO Dennis Muilenburg (center), and Embraer CEO Paulo Cesar Silva

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

Embraer Says Key Vote on Boeing Tie-up May Proceed

February 26, 2019 / WIL BALDWIN

SAO PAULO (Reuters) – Brazilian planemaker Embraer said on Tuesday a key shareholder meeting to vote on the sale of 80 percent of its commercial aviation business to Boeing Co could proceed as scheduled on Tuesday, after it got an injunction overturned.

A federal judge had suspended the meeting on Friday at the request of a union representing some Embraer workers which had lobbied against the deal, partly on concerns Boeing would slash jobs if the tie-up was approved.

Shares in Embraer surged 3 percent in early Sao Paulo trading on news the meeting would take place.

Last-minute legal twists are common in Brazil, and Embraer had already overturned several injunctions that temporarily blocked the deal.

Under the proposed terms, Boeing will pay $4.2 billion to control Embraer’s most profitable division, its commercial aviation business.

The deal will provide a cash influx that the Brazilian planemaker has defended as crucial to its survival as increased competition between Boeing and Airbus squeezes out smaller rivals.

“The potential operation with Boeing will save Embraer,” lawyers for the Brazilian planemaker said in July in a court filing as it battled an earlier challenge to the deal.

But critics say the arrangement will leave Embraer weaker and financially dependent on its two remaining divisions, executive jets and defense, both of which have posted losses in recent quarters.

Foreign shareholders, who own a tiny slice of the company, overwhelmingly voted to approve the deal.

Brazil’s securities regulator late on Monday denied a separate request filed by minority shareholders to suspend the shareholder meeting.

Embraer’s union has vowed to protest the meeting, which will be held at the planemaker’s headquarters in the city of Sao Jose dos Campos. The union’s plans prompted Embraer to seek legal restrictions of its own.

A judge sided with Embraer last week, allowing Brazil’s military police to safeguard the planemaker’s premises while the meeting takes place.

The deal has already been approved by Brazil’s government, which holds veto power over important business decisions at Embraer, which was a state company until its privatization in the 1990s.

(Reporting by Marcelo Rochabrun in Sao Paulo; Additional reporting by Gram Slattery in Rio de Janeiro; Editing by Jason Neely, Keith Weir and Bernadette Baum)

Pratt & Whitney Delivers GT PW1900G Engines for Embraer

February 18, 2019 / WIL BALDWIN

EAST HARTFORD, Conn., Feb. 18, 2019 /PRNewswire/ — Pratt & Whitney, a division of United Technologies Corp. (UTX), and Embraer celebrated delivery of the GTF™ PW1900G production engines for the E195-E2 aircraft at Embraer’s E2 final assembly line in São José dos Campos, São Paulo, Brazil. The E195-E2 is expected to enter into service in the second half of 2019 with Azul Brazilian Airlines.

“We are excited to receive the GTF production engines for the initial serial production of the E195-E2, as we know firsthand the advantages that these engines provide to our customers and the environment,” said Fernando Antonio Oliveira, Embraer’s E2 Program Director.

Embraer’s E190-E2 aircraft, which is also powered by the Pratt & Whitney PW1900G engine, entered service in April 2018 with Widerøe, followed by Air Astana in December 2018.

“Delivering the first production engines for the E195-E2 is an important milestone for the program,” said Graham Webb, vice president of Commercial Engine Programs at Pratt & Whitney. “We look forward to continuing to work together to support Embraer’s second GTF-powered E2 aircraft model.”

In addition to being selected as the exclusive propulsion system for the E2 commercial aircraft, Pratt & Whitney’s APS2600E auxiliary power unit (APU) is the sole-sourced APU for the E2 family. The APS2600E APU gives airlines greater flexibility, by increasing the altitude ceiling for ETOPS and other operations, and providing a significant increase in electrical power delivery to meet the needs of today’s airlines.

The E195-E2 aircraft has more than 24% reduction in fuel burn per seat than the previous-generation E195, with NOx emissions 50% below the ICAO CAEP/6 regulation and 19dB to 20dB of ICAO Chapter 4 cumulative noise margin.

About Pratt & Whitney

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft and helicopter engines, and auxiliary power units. United Technologies Corp., based in Farmington, Connecticut, provides high-technology systems and services to the building and aerospace industries. To learn more about UTC, visit its website at www.utc.com, or follow the company on Twitter: @UTC.

This press release contains forward-looking statements concerning future business opportunities. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in levels of demand in the aerospace industry, in levels of air travel, and in the number of aircraft to be built; challenges in the design, development, production support, performance and realization of the anticipated benefits of advanced technologies (including our expected returns under customer contracts); as well as other risks and uncertainties, including but not limited to those detailed from time to time in United Technologies Corp.’s Securities and Exchange Commission filings.

Embraer and Azul Firm Up Order for Additional E195-E2 jets

December 19, 2018 / WIL BALDWIN

São José dos Campos, Brazil, December 19th, 2018 – Embraer and Azul Linhas Aéreas Brasileiras S.A. have signed a contract for a firm order for a previously announced 21 E195-E2 jets. This agreement was revealed as a Letter of Intent (LoI) at the Farnborough Airshow, in July. This contract has a value of USD 1.4 billion, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog.

This contract is in addition to the 30 E195-E2 jets ordered by the airline in 2015, raising Azul’s total order to 51 Embraer E2 aircraft. Azul is the launch operator of the E195-E2 and will receive the first aircraft in 2019.

Embraer is the world’s leading manufacturer of commercial jets with 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 almost 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.

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

Embraer and Boeing Approved Terms of Strategic Aerospace Partnership

December 17, 2018 / WIL BALDWIN

SAO PAULO and CHICAGO, Dec. 17, 2018 /PRNewswire/ — Embraer [B3: EMBR3, NYSE: ERJ] and Boeing [NYSE: BA] have approved to the terms of a strategic partnership that would position both companies to accelerate growth in global aerospace markets.

The approved terms define the joint venture comprising the commercial aircraft and services operations of Embraer, in which Boeing will hold an 80 percent ownership stake and Embraer will hold the remaining 20 percent. The transaction remains subject to approval by the Government of Brazil, after which Embraer and Boeing intend to execute definitive transaction documents. The closing of the transaction will then be subject to shareholder and regulatory approvals and customary closing conditions.

Under the terms of the proposed partnership, Boeing will acquire an 80 percent ownership stake in the joint venture for $4.2 billion. The partnership is expected to be neutral to Boeing’s earnings per share in 2020 and accretive thereafter. Estimated annual pre-tax cost synergies of approximately $150 million are anticipated by the third year of operations.

Once the transaction has closed, the commercial aviation joint venture will be led by Brazil-based management, including a president and chief executive officer. Boeing will have operational and management control of the new company, which will report directly to Dennis Muilenburg, Boeing chairman, president and chief executive officer. Embraer will retain consent rights for certain strategic decisions, such as transfer of operations from Brazil.

“Boeing and Embraer know each other well through more than two decades of collaboration, and the respect we have for each other and the value we see in this partnership has only increased since we announced our joint efforts earlier this year,” said Dennis Muilenburg, Boeing chairman, president and chief executive officer.

“We are confident that this partnership will deliver great value to Brazil and the Brazilian aerospace industry as a whole. This alliance will strengthen both companies in the global market and is aligned with our long-term sustainable growth strategy,” said Paulo Cesar de Souza e Silva, Embraer president and chief executive officer.

The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

The transaction is subject to approval by the Government of Brazil, ratification by the Embraer Board of Directors and its further authorization to execute the definitive transaction documents. Once the parties have executed the definitive transaction agreements, the strategic partnership will then be subject to shareholder and regulatory approvals, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.

Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed terms of the transaction, the ability of the parties to satisfy the conditions to executing or closing the transaction and the timing thereof, and the benefits and synergies of the proposed transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and neither party undertakes an obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, the ability of the parties to reach final agreement on a transaction, consummate such a transaction and realize anticipated synergies, and other important factors disclosed previously and from time to time in the filings of The Boeing Company and/or Embraer with the Securities and Exchange Commission.

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

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