The airline, to be based in Sao Paulo, plans to commence operations in early 2009 and, ultimately, will serve most major markets throughout Brazil with as many as 76 brand-new Embraer aircraft by 2013.
Mr. Neeleman, together with Frederico Curado, CEO of the Brazilian planemaker Embraer, announced today that the company has placed an aircraft order comprising firm orders for 36 Embraer E-195 jets, with options for another 20 and purchase rights for a further 20. The firm orders are valued at $1.4 billion. The order, if all options and purchase rights are exercised, is valued at $3 billion.
"Following our successful launch of the E190 with JetBlue, we are pleased to have been selected yet again by David for his new airline in Brazil," said Mr. Curado. "We are particularly proud to have someone with David's track record operating our E-jets here in Brazil."
The jets will seat 118 passengers in a two-by-two seating configuration and feature more legroom throughout the aircraft than any competing product in Brazil. Furthermore, LiveTV satellite television will be fitted at every comfortable, ultra-leather upholstered seat -- another important first for a Brazilian airline.
Brazil has the second largest economy in the Americas -- and 10th in the world -- but only about 5 percent of Brazilians currently fly. Airfares are on average 50 percent higher than in the United States on flights of like distance. As a result, there is a tremendous opportunity to stimulate airline demand with lower prices.
"The E-195 is the perfect airplane for the Brazilian market," said Mr. Neeleman. "With 30 percent fewer seats than the Boeing and Airbus aircraft flown by other Brazilian carriers, the E-195 offers competitive unit costs but much lower trip costs. Because we can make money with fewer passengers than our competitors, we can provide nonstop service profitably where they can't, as well as offer superior frequency.
"Our target market is the 150 million passengers who travel annually by long distance bus as well as those who, for lack of a convenient alternative, don't travel at all," said Mr. Neeleman. "We respect TAM and GOL as well-run companies with deep pockets. We believe, however, that the Brazilian market is ready for a third major airline and that there is sufficient untapped potential to support all of us."
Mr. Neeleman today also unveiled the airline's website, www.voceescolhe.com.br ('Your Choice'), where Brazilian consumers can help design the airline by voicing their opinions, likes and dislikes. The airline hopes to engage travelers in an ongoing dialogue beginning with choosing the company's name. The person who first submits the winning entry will earn free travel privileges for themselves and a named companion.
This news release was distributed by PrimeNewswire, www.primenewswire.com
SOURCE: David Neeleman
For David Neeleman Gareth Edmondson-Jones (347) 327-6613 gejink@gmail.com
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