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Monday, March 31, 2008

Neeleman Launches New Brazilian LCC

Embraer signed a contract with the newest Brazilian airline, commanded by the businessman David Neeleman, who holds Brazilian as well as U.S. citizenship having been born in Sao Paolo, for the sale of 36 ERJ 195 jets. The agreement also includes options for another 20 aircraft and purchase rights for 20 more. The total value of the order, at list price, is $1.4 billion, and could reach $3 billion if all of the options and rights of purchase are confirmed. Neeleman’s last start up – JetBlue – pioneered the use of Embraer aircraft in non-regional operations. Related Story
The new company registered a request for an Airline Company Certificate of Approval (Certificado de Homologacao de Empresa de Transporte Aereo - CHETA) with the National Civil Aviation Agency (Agencia Nacional de Aviacao Civil - ANAC) this month and will soon launch a marketing campaign to publicize its name and brand. The first jet will be delivered by Embraer yet this year.
"The ERJ 195 is the perfect airplane for the Brazilian market," stressed David Neeleman, president of the new company. "With 30 percent fewer seats than the aircraft favored by the competition, the ERJ 195 offers competitive unit costs and much lower trip costs. Because we can make money with fewer passengers per flight, we can provide nonstop service in more markets than exists today."
The ERJ 195 will be configured in a single-class layout, accommodating 118 passengers in a cabin with six feet and seven inches (two meters) headroom and two leather seats on each side of the aisle. A state-of-the-art in-flight entertainment system, with Live TV and individual screens, will be available and each passenger may select the programming of their preference. With its range of 2,200 nautical miles (4,077 km), the jet will be able to fly nonstop routes between any two major Brazilian cities.
The largest and newest aircraft of the four-member E-Jets family, the ERJ 195 entered revenue service in September 2006. On December 31, 2007, the ERJ 170/190 E-Jets had logged 764 firm orders and 786 options from more than 40 customers in 25 countries on five continents and had surpassed 1.2 million flight hours.