In a firm move for Brazil’s aviation sector, the National Bank for Economic and Social Development (BNDES) has given the green light to finance ten Embraer E195-E2 commercial jets for Azul Linhas Aéreas.
This substantial investment, valued at approximately R$1.9 billion, provides a significant boost for Azul’s air transport capacity. It furthers the Brazilian government’s commitment to fostering growth in the domestic aerospace industry.
A Continued Partnership with BNDES
This financing agreement represents the largest direct aircraft acquisition operation between BNDES and Azul Linhas Aéreas to date.
It builds upon a foundation of previous collaborations, including the financing of seven aircraft in 2009 (worth R$360 million) and six aircraft in 2010 (valued at R$330 million).
The scale of this latest deal highlights the growing confidence in Brazil’s aviation sector and the strategic importance of supporting domestic manufacturers.
BNDES President Aloizio Mercadante emphasized the crucial role that development banks and export credit agencies play in countries with advanced aeronautical industries.
In Brazil, BNDES fulfills this vital function, providing essential support to national manufacturers. Mercadante stated, “Azul’s acquisition of Embraer aircraft strengthens the national economy, generating tax collection here, in addition to creating qualified jobs and income in Brazil.”
This also aligns with President Lula’s government’s development policy objectives.
Embraer Comments
Antonio Carlos Garcia, Executive Vice President of Finance and Investor Relations at Embraer, highlighted the historic partnership between Embraer, BNDES, and Azul.
He noted that this collaboration has been instrumental in driving the growth of Brazil’s air transport industry.
Garcia also praised the E-Jets E2, describing them as “the most efficient single-aisle aircraft today, designed and produced in Brazil.” He emphasized their potential to enhance connectivity on domestic routes effectively.
Azul’s Vision for Growth
Azul’s CEO, John Rodgerson, expressed gratitude for BNDES’s ongoing support of the aviation sector’s development and growth.
He viewed the financing as a clear vote of confidence in Azul’s business model and future prospects. Rodgerson emphasized how this deal would generate jobs and income throughout Brazil.
He pointed to the strength of three major national institutions working together for the country’s benefit.
José Luís Gordon, Director of Productive Development, Innovation and Foreign Trade at BNDES, underscored how the Bank’s direct support for Azul reinforces the national industry.
He stated, “This project reinforces BNDES’ commitment to the Brazilian aerospace industry and national airlines. They are part of a fundamental sector for the Brazilian economy.”
This sentiment echoes the broader strategic vision of leveraging domestic capabilities to drive economic growth and innovation.
Azul Linhas Aéreas: A Key Player in Brazilian Aviation
Azul Linhas Aéreas has emerged as a significant force in Brazil’s aviation landscape. Founded in 2008, the airline has rapidly expanded its operations, becoming the country’s third-largest carrier.
The airline maintains a focus on serving underserved markets and introducing innovative service concepts. Since its inception, Azul has played a crucial role in enhancing air connectivity across Brazil.
The acquisition of ten new Embraer E195-E2 jets represents a major step in Azul’s fleet modernization and expansion strategy.
These state-of-the-art aircraft offer improved fuel efficiency, reduced emissions, and enhanced passenger comfort.
By choosing Embraer aircraft, Azul further supports the domestic aerospace industry. It also gains access to cutting-edge technology tailored for the unique demands of Brazil’s aviation market. This decision reinforces the airline’s focus as a key driver of economic development in the regions it serves.
Conclusion
This deal not only strengthens Brazil’s position in the global aviation market but also creates a ripple effect of economic benefits, from job creation to technological advancement.
As Brazil continues to invest in its aerospace capabilities, partnerships like this will be crucial in ensuring the country’s competitiveness on the world stage and in fostering sustainable economic growth at home.
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