Embraer Sells 11 More E-Jets to Azul

Embraer and Azul Linhas Aereas Brasileiras signed a contract today for the purchase of 11 EMBRAER 195 jets. The transaction increases the airline's total orders for Embraer E-Jets to 52 aircraft. The value of this latest acquisition, at list price, is USD 497.2 million. Deliveries are scheduled to begin in 2013. In addition to the 23 E195s it already flies in 118-seat single class configuration, Azul also operates ten 106-seat E190s. Both airplanes are the backbone of Azul's fleet, which started operations in 2008 and in a couple of years expanded to achieve the respectable mark of 12 million transported passengers. With this new order, Azul will be the operator of the largest fleet of E-Jets in South America. All of the aircraft are equipped with individual in-flight entertainment system. "The follow-on order from Azul is another example of the E195 success in the low-cost carrier business model," said Paulo Cesar de Souza e Silva, Embraer President of Commercial Aviation. "I'm particularly pleased to have a Brazilian customer showcasing the versatility of the E195 here in our home country." Azul CEO David Neeleman explained the need for increasing the size of the airline's fleet: "This order underlines our belief that the E190 and E195 are the right aircraft for Azul's growing network within Brazil. This additional capacity will support profitable growth, as well as our core mission of providing safe, comfortable and affordable air transportation in the country." The proven success of the E195 with low cost carriers is attributed to its outstanding dispatch reliability and high utilization. Today, each E190 and E195 in the Azul fleet is scheduled an average of 13 block hours per day, the highest of any E-Jets operator. The E195 and E190 are also in service with other low cost carriers, including Flybe, in the United Kingdom, JetBlue, in the USA, nasair, in Saudi Arabia, and Virgin Australia.
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Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Oct 27, 2011