Tag: Brasilia (Page 1 of 2)

Embraer Carries Out First Aircraft Financing Transaction With SkyWest Airlines

January 25, 2021 / WIL BALDWIN

Embraer (NYSE: ERJ) carried out its first aircraft non-payment insurance (ANPI) transaction financing the delivery of four Embraer E175 jets to SkyWest, Inc. (NASDAQ: SKYW). The transaction, completed in December 2020, was supported by the Aircraft Finance Insurance Consortium (AFIC), designed by Marsh and was underwritten by AXIS Insurance and Sompo International. The lender for the transaction is the Brazilian Development Bank (BNDES).

This transaction is a major achievement for the aircraft finance industry being the first AFIC-supported transaction for regional jets, the first AFIC-supported financing for an airline based in the United States, and the first AFIC-supported financing for commercial aircraft funded by an export credit agency (ECA).

AFIC´s insurance product provides additional flexibility in financing Embraer aircraft and could be used with ECA, bank, and capital markets funding, enhancing the possible financing structures available for Embraer customers. The AFIC product improves the credit quality of aircraft finance transactions through the use of a robust non-payment insurance policy underwritten by investment grade-rated insurance companies. It further reduces overall costs of financing while offering many other benefits to Embraer customers such as flexibility of terms and faster implementation.

Embraer’s relationship with SkyWest dates back to 1986, when SkyWest began operating the EMB 120 Brasilia turboprop. Since 2013, SkyWest has purchased more than 180 E175 jets.

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 1,600 deliveries, redefining the traditional concept of regional aircraft.

The First Brazilian Gripen Flies in Brazil

September 27, 2020 / WIL BALDWIN

The first Brazilian Gripen E, designated by Brazilian Air Force (FAB) as F-39 Gripen, concluded its first flight in Brazil. The aircraft flew from the airport in Navegantes to Embraer’s facility in Gavião Peixoto. The official presentation of the aircraft is scheduled to take place during the Aviator’s Day and the Brazilian Air Force Day ceremony in Brasilia, celebrated on the 23rd of October.

The President and CEO of Embraer Defense & Security, Jackson Schneider, highlighted the scope of this partnership: “Embraer will play a leading role in the execution of the Gripen programme in Brazil and will be responsible for systems development, integration, flight testing, final assembly, and delivery of the aircraft in support of Brazilian Air Force operations. In terms of technology transfer, the Gripen programme is a great opportunity to increase our knowledge in the development and manufacturing of advanced combat aircraft.”

The Brazilian Minister of Defence, Fernando Azevedo e Silva also highlighted the importance of sharing experiences arising from cooperation between Brazil and Sweden: “Gripen increases the operational capacity of the Brazilian Air Force and promotes a partnership that fosters research and industrial development in both countries,” the Minister of Defence declared.

For the Air Force Commander, Lt. Brig. Antonio Carlos Moretti Bermudez, the arrival of the first F-39 Gripen aircraft is a major milestone for the project: “It is an immense satisfaction for the Brazilian Air Force to see this aircraft flying on national territory. The F-39 Gripen, the new Brazilian Air Force multi-mission aircraft, will be the backbone of Fighter Aviation and it reaffirms the FAB’s commitment to maintaining the country’s sovereignty and to defend the twenty-two million square kilometres under its responsibility”, Lt. Brig. Antonio Carlos Moretti Bermudez points out.

The flight test programme will be expanded to include the Gripen Flight Test Center at Embraer in Gavião Peixoto, which will be fully integrated with the test programme already running at full phase at Saab in Linköping since 2017. Activities in Brazil will include testing of flight control system, environmental control system as well as tests in the aircraft in tropical climate conditions. In addition to the testing that is common for the Gripen E Programme, unique features of the Brazilian aircraft, such as weapons integration as well as the Link BR2 communication system – which provides encrypted data and voice communication between the aircraft – will be tested in Brazil.

The production aircraft will be delivered to the Brazilian Air Force, at Wing 2 in Anápolis (Goiás State), by the end of 2021.

LATAM Airlines to Fire ‘at Least’ 2,700 Workers in Brazil

August 2, 2020 / WIL BALDWIN

BRASILIA (Reuters) – LATAM Airlines will fire “at least” 2,700 workers in Brazil, including pilots, its Brazilian arm said on Saturday, as the bankrupt carrier struggles to cut costs and cope with an industry collapse due to the COVID-19 pandemic.

In a statement, LATAM Brasil said it opened a voluntary redundancy process on Friday which will run through Aug. 4, after which a further minimum 2,700 jobs will be cut.

The announcement followed the breakdown in talks with the SNA union over workers’ pay, the statement said. O Globo and O Estado de S. Paulo newspapers had reported the redundancies earlier on Saturday. LATAM said it pays its pilots and crew more than its rivals in Brazil, and the pandemic has forced it to “match industry practices.”

The layoffs are the latest in efforts to downsize Latin America’s largest airline. Before the novel coronavirus outbreak, the airline had 43,000 workers worldwide, with most of them in Brazil and Chile.

LATAM is seeking to restructure $18 billion in debt. When it filed for U.S. bankruptcy protection in May, it was the world’s largest airline to date to seek an emergency reorganization due to the pandemic.

(Reporting by Jamie McGeever and Marcelo Rochabrun; Editing by Paul Simao)

American Airlines Announces Additional Schedule Changes in Response to COVID-19

March 15, 2020 / WIL BALDWIN

American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is in response to decreased demand and changes to U.S. government travel restrictions due to coronavirus (COVID-19). The airline will:

Reduce international capacity by 75% year over year — from March 16 to May 6
Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT)
Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled

In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.

International Route Changes

By region, the new schedule changes include the following:

Asia, effective March 16

American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT

Australia and New Zealand, effective March 16

Suspending service from Los Angeles (LAX) to Auckland (AKL) effective March 16, which was slated to end seasonal flying on March 28
Suspending service from LAX to Sydney (SYD) effective March 16

Europe, phased suspension

American will continue to operate one flight daily from DFW to LHR and MIA to LHR
Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew
LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16
Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand

South America, effective March 16

Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO)
Suspending service from DFW, JFK and MIA to São Paulo (GRU)
Suspending service from DFW and MIA to:
- Chile: Santiago (SCL)
- Colombia: Bogota (BOG)
- Ecuador: Guayaquil (GYE) and Quito (UIO)
- Peru: Lima (LIM)
Suspending service from MIA to:
- Brazil: Brasilia (BSB) and Manaus (MAO)
- Colombia: Barranquilla (BAQ), Cartagena (CTG), Cali (CLO), Medellin (MDE) and Pereira (PEI)

These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement — otherwise known as requesting a slot waiver — to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.

Brazil’s Gol Shares Jump on American Codeshare Agreement

February 4, 2020 / WIL BALDWIN

SAO PAULO, Feb 4 (Reuters) – Shares in Brazil’s Gol rose as much as 5.5% on Tuesday after the budget airline said it had signed a codeshare agreement with American Airlines.

“When this is approved by Brazilian and U.S. authorities, Gol’s new codeshare will allow its customers to connect to more than 30 destinations in the USA,” Gol said in a statement, adding that American will now offer more U.S.-South American flights than anyone else.

The flights will operate from Gol’s hubs in São Paulo, Rio de Janeiro, Brasilia and Fortaleza, and will be added to current regular flights to Miami and Orlando.

Investors cheered the news, pushing Gol’s shares up as much as 5.5% to 36.25 reais, making it one of the biggest gainers on the Ibovespa. At midday in Sao Paulo trading, Gol shares were up 4.6% and the benchmark index was up 1.5%.

“The partnership will increase the quantity and quality of its flights, offering the more daily flights between South America and the United States than any other partner,” analysts at Guide Investimento said in a client note on Tuesday.

The agreement will make it easier for customers to purchase flights for both airlines using a single reservation. It will also integrate check-in, boarding and baggage checking throughout the trip, and include the air miles program.

(Reporting by Paula Laier Writing by Jamie McGeever Editing by Jonathan Oatis)

Embraer and SkyWest Sign Contract for 20 E175 Jets

January 30, 2020 / WIL BALDWIN

São José dos Campos, Brazil, January 30, 2020 – Embraer and SkyWest, Inc. (NASDAQ: SKYW) signed a firm order for 20 E175 jets in a 76-seat configuration. The order has a value of USD 972 million, based on 2019 list prices, and is already included in Embraer’s 2019 fourth-quarter backlog. Deliveries are expected to begin in the second half of 2020.

“Embraer and SkyWest enjoy a partnership marked by a longstanding history of service to the mainline carriers, and we relish the opportunity to break new ground,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “Today, we are excited to announce that these 20 new aircraft will be the first E-Jets operated by SkyWest within the American Airlines network.”

“We’re pleased to continue advancing our position in the industry with this latest order of new Embraer aircraft,” said Chip Childs, President and Chief Executive Officer of SkyWest, Inc. “We appreciate the long-standing partnership with Embraer and look forward to operating this outstanding aircraft for all four of our mainline partners.”

Embraer’s relationship with SkyWest dates back to 1986, when SkyWest began operating the EMB 120 Brasilia turboprop. With this additional order for the E175, SkyWest has purchased more than 180 aircraft of this model since 2013 alone.

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.

Brazil Antitrust Regulator Gives Nod to Boeing-Embraer Deal

January 27, 2020 / WIL BALDWIN

The Boeing logo is displayed on a screen, at the NYSE in New York

BRASILIA (Reuters) – Brazilian antitrust regulator Cade on Monday approved Boeing Co’s <BA> purchase of Embraer SA’s <ERJ> commercial aviation division without restrictions, according to a statement on the agency’s website.

Cade’s top administrative council could still call for a reconsideration of the case, putting the matter to a vote.

The companies welcomed the move on Monday, with Boeing saying it remained confident of getting approval from the European Commission, the last hurdle to the transaction.

The European Union has set an April 30 deadline to decide on the deal.

Boeing has offered to pay $4.2 billion for 80% of Embraer’s commercial jet division, which builds passenger jets in the 70- to 150-seat segment.

That puts it in direct competition with next-generation jets designed by Bombardier Inc <BBD-B.TO> and acquired by Europe’s Airbus SE <EADSY>, which rebranded them the A220 program.

(Reporting by Ricardo Brito; additional reporting by Kanishka Singh; Writing by Jake Spring; Editing by Sandra Maler, Marguerita Choy and Aditya Soni)

E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos

Brazil Association Takes Fight Against Embraer-Boeing Deal to Europe

December 5, 2019 / WIL BALDWIN

BRUSSELS, Dec 5 (Reuters) – An association representing minority investors in Brazil is lobbying European antitrust regulators to spike a deal between planemakers Embraer SA and Boeing Co, calling it a killer acquisition.

Aurelio Valporto, the head of minority investor association Abradin, said the European Commission should block Boeing’s proposed $4.2 billion purchase of 80% Embraer’s commercial passenger jet division or demand hefty concessions.

“What will be left from Embraer won’t survive, and even if it was possible to survive, Embraer wouldn’t be able to produce any aircraft with 50 passengers or more,” Valporto said in an interview late on Wednesday, arguing that Embraer and Boeing planes compete in the marketplace.

Embraer’s commercial jet division focuses on the 70 to 150-seat segment, competing directly with the CSeries jets designed by Bombardier Inc, a division that was bought by Europe’s Airbus SE.

Boeing aims to take control of Embraer’s commercial jet business, its most profitable, to compete directly with Airbus in the market for planes with fewer than 150 seats.

Embraer said in a statement on Thursday that the deal will “serve the interests of shareholders by enabling Embraer to expand markets and increase sales.” The deal was backed by around 97% of Embraer’s shareholders earlier this year.

Valporto complained about the deal to the European Commission two months ago, saying it hurt competition in the Brazilian aerospace industry, and on Wednesday took his grievance to antitrust officials in Brasilia.

The deal has already been approved by regulators in the United States, China and Japan. If it closes, Embraer will receive dividends from its remaining 20% stake in the commercial jet business, but will have to rely more heavily on its business jets and defense divisions to turn a profit. Those two divisions have posted losses in recent quarters.

The European Commission, which launched a full-scale investigation into the deal in October, declined to comment.

Boeing said it and Embraer had been engaged with the European Commission and other global regulatory authorities since late last year.

“We continue to co-operate with the European Commission and CADE as they assess our transaction and look forward to a positive resolution,” a spokesman for the company said.

The EU has voiced concerns the deal would remove Embraer, the world’s third-largest commercial aircraft maker, from the industry, an indication that it may demand significant concessions from Boeing.

The EU regulator halted its investigation last month while waiting for Boeing to submit data on the deal.

(Reporting by Foo Yun Chee in Brussels Additional reporting by Marcelo Rochabrun in Sao Paulo Editing by Kirsten Donovan and Matthew Lewis)

Chinese Antitrust Regulator Approves Boeing-Embraer Deal

November 21, 2019 / WIL BALDWIN

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BRASILIA (Reuters) – A Chinese antitrust regulator has approved Boeing Co’s <BA> deal to buy a controlling stake in the commercial jet division of Brazilian planemaker Embraer <ERJ>, according to a statement on the regulator’s website.

The Boeing-Embraer deal appears on a list dated Nov. 19 of transactions “approved unconditionally” that is posted to the website of the Chinese State Administration for Market Regulation’s anti-monopoly department.

The document gives no further details, only saying that the case was adjudicated 10 days earlier on Nov. 9.

Boeing, the world’s largest planemaker, has been seeking to finalize its purchase of 80% of Embraer’s commercial jet division in a bid to compete with Europe’s Airbus <AIR.PA> in the market for planes with fewer than 150 seats.

China’s approval comes as EU regulators have delayed a decision until both companies provide additional documents, which Embraer has said it is trying to do as soon as possible.

The companies originally said they expected to close the deal this year.

(Reporting by Jake Spring; Editing by Bill Berkrot)

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United, Avianca and Copa’s South American Deal Delayed as They Mull Fourth Partner

October 28, 2019 / WIL BALDWIN

BRASILIA, Oct 28 (Reuters) – A proposed joint venture between United Airlines, Colombia’s Avianca Holdings and Panama’s Copa Holdings has been delayed due to the potential inclusion of a fourth partner, as well as problems at Avianca, the CEOs of two of the companies said.

United Airlines said last week it wants to include Brazil’s Azul SA, in which it already has a stake, in the planned tie-up with Copa and Avianca, the latest play by a U.S. carrier for a region expected to have significant air-travel growth in coming decades.

The three airlines had said in November 2018 they would file for U.S. antitrust approval “in the near term” in order to coordinate routes between South America and the United States, a bold move to expand their market share in the region. At the time, the carriers said they aimed to implement the agreements in 2020.

But almost a year after United, Copa and Avianca announced the preliminary joint venture plan, they have yet to file any paperwork with the U.S. Department of Transportation, seeking antitrust immunity. Now, the regulatory process may begin as late as next year, they said.

Copa Chief Executive Officer Pedro Heilbron said the group expects to file in early 2020, while Avianca CEO Anko van der Werff, said it would file between late 2019 and early 2020. Both spoke to Reuters in separate interviews on Monday on the sidelines of the ALTA Airline Leaders’ Forum in Brasilia.

Both said there was a delay on the original timeline.

United did not comment on a delay but said it planned to complete the application later this year or early next year. Azul had no comment other than saying it was “always looking for opportunities with its partners.”

The potential inclusion of Azul, which may be in the early stages of negotiations, has been one reason for the timetable slipping.

“Quite frankly, really completely open and honest, we haven’t had many discussions,” van der Werff said. “I personally haven’t had even one real, serious discussion at the CEO level about when to include and what to include.”

Both executives said they want Azul to be part of the joint venture – Brazil is by far the largest aviation market in the region – but its inclusion makes negotiations more difficult.

“It almost doubles the level of complexity,” Heilbron said.

Avianca has also gone through corporate turmoil. In May, United Airlines ousted the chairman and controlling shareholder at Avianca, revamping leadership.

“We should have filed with regulators this year but everything got delayed because of what has happened at Avianca,” Heilbron added.

(Reporting by Marcelo Rochabrun in Brasilia Additional reporting by Tracy Rucinski in Chicago Editing by Matthew Lewis and Sandra Maler)

International Route Changes

Asia, effective March 16

Australia and New Zealand, effective March 16

Europe, phased suspension

South America, effective March 16

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