Azul must raise $210 million for the seven Embraers set for delivery next year, according to Azul President Pedro Janot, who said the financing involves at least five banks.

Less than a year old, having launched last December, the carrier expects to end the year with 14 106-seat ERJ 190s and 118-seat ERJ 195s, after ordering 40 total and optioning 36. Azul, said Janot, expects to add seven aircraft next year with an ultimate goal of a 57-aircraft fleet by the end of 2013. Its current route network will jump to 18 points next year and 26 by 2013, according to the airline.

Despite the world recessionary troubles, Janot expects Azul to be profitable this year with the two million passengers expected by year’s end. In 2010, projections are for 3.44 million passengers and 8.69 million by 2013. In September, the carrier’s load factor was 81%, number three in the market compared to a 45% load factor when it launched.

Janot said that plans for an Initial Public Offering are on hold until 2011. He highlighted what he called a huge potential market that has grown four times the GDP and is expected t double in five "We won third place with 12 aircraft compared to WebJet’s 16,” said Janot, who added the position rank is less important than the “being best in the trade.”

The company is focusing on its five-year plan which does not include international service. However, Janot, speaking before the British Chamber of Commerce and Industry in Sao Paolo, did not preclude the possibility once its five-year plan is completed. He said the ERJ 190 was perfect for such routes.

He also criticized the current fare war between TAM and GOL for market share. “Our challenge,” he said is in the duopoly. The two began fighting and have lowered rates to unprecedented levels.”
However, fares are rising in order to achieve profitability.

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