Neeleman's "jetBlue" Brazil...Its official...
03-27-2008, 07:16 PM
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Neeleman's "jetBlue" Brazil...Its official...
DAVID NEELEMAN ANNOUNCES PLANS FOR NEW DOMESTIC AIRLINE IN BRAZIL; PLACES AIRCRAFT ORDER VALUED AT UP TO $3 BILLION
New Carrier Aims to Set New Quality Standard and Stimulate Travel Demand in Brazil
NEW YORK, NY (March 27, 2008) – JetBlue founder and Chairman David Neeleman has announced plans to start-up his fourth airline, a domestic carrier in Brazil, pending local Government approvals. Mr. Neeleman, who was born in Brazil, has raised $150 million to finance the as-yet-unnamed carrier.
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 Fred Curado, CEO of 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.
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.
“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 Curado. “We are particularly proud to have someone with David’s track record operating our E-jets here in Brazil.”
Neeleman was equally enthusiastic about the aircraft. “The E-195 is the perfect airplane for the Brazilian market. With 30% fewer seats than the Boeing and Airbus aircraft favored by the competition, the E-195 offers competitive unit costs but 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.”
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 similar distance. As a result, there is a tremendous opportunity to stimulate airline demand with lower prices.
“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."
Rather than announcing the name of the airline, Neeleman unveiled a website: www.voceescolhe.com.br wherein Brazilian consumers can help design the airline by voicing their opinions, likes and dislikes. Neeleman hopes to engage the Brazilian consumer in an ongoing dialogue with the airline, beginning with choosing the company’s name. Beginning today through April 14, consumers are invited to join in a nationwide contest to name the airline by suggesting up to five alternative names. The first person who submits the name that is ultimately chosen will earn lifetime free travel privileges on the airline for themselves and a named companion. In addition, the first 1,000 people who also submit the winning name will receive two free round trip air tickets anywhere the new airline flies. Further rules and restrictions may be found on the website.
Simultaneous with the beginning of today’s press conference, the new airline also introduced itself via an email to over 4,500 travel agents throughout Brazil. “We wanted our future distribution partners to hear from us first.” said David Neeleman. “In addition to inviting them to participate in our naming competition, we look forward to developing a strong, mutually beneficial relationship with the travel agent community.”
Having founded several highly successful airline ventures, including JetBlue, Neeleman is particularly upbeat about the prospects for his new venture. “This is the right place at the right time. As a Brazilian, I’m excited to be back in Brazil developing the Brazilian airline market with a Brazilian made aircraft.” Based on his record to date, Mr. Neeleman appears to have found a winning formula and Brazilians should expect an airline focused on safety, high quality and low costs, which will produce exceptional value to its shareholders, its employees and its customers.
For further information, please contact:
Gareth Edmondson-Jones
Mobile: 1-347 327-6613
In Brazil:
Egom Assessoria de Imprensa
Marcela Matos / Silvana Pereira
Phones: (55-11) 3873 3058/ 3865 0838
Mobile: (55-11) 8274-123
E-mail: [email protected]
New Carrier Aims to Set New Quality Standard and Stimulate Travel Demand in Brazil
NEW YORK, NY (March 27, 2008) – JetBlue founder and Chairman David Neeleman has announced plans to start-up his fourth airline, a domestic carrier in Brazil, pending local Government approvals. Mr. Neeleman, who was born in Brazil, has raised $150 million to finance the as-yet-unnamed carrier.
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 Fred Curado, CEO of 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.
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.
“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 Curado. “We are particularly proud to have someone with David’s track record operating our E-jets here in Brazil.”
Neeleman was equally enthusiastic about the aircraft. “The E-195 is the perfect airplane for the Brazilian market. With 30% fewer seats than the Boeing and Airbus aircraft favored by the competition, the E-195 offers competitive unit costs but 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.”
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 similar distance. As a result, there is a tremendous opportunity to stimulate airline demand with lower prices.
“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."
Rather than announcing the name of the airline, Neeleman unveiled a website: www.voceescolhe.com.br wherein Brazilian consumers can help design the airline by voicing their opinions, likes and dislikes. Neeleman hopes to engage the Brazilian consumer in an ongoing dialogue with the airline, beginning with choosing the company’s name. Beginning today through April 14, consumers are invited to join in a nationwide contest to name the airline by suggesting up to five alternative names. The first person who submits the name that is ultimately chosen will earn lifetime free travel privileges on the airline for themselves and a named companion. In addition, the first 1,000 people who also submit the winning name will receive two free round trip air tickets anywhere the new airline flies. Further rules and restrictions may be found on the website.
Simultaneous with the beginning of today’s press conference, the new airline also introduced itself via an email to over 4,500 travel agents throughout Brazil. “We wanted our future distribution partners to hear from us first.” said David Neeleman. “In addition to inviting them to participate in our naming competition, we look forward to developing a strong, mutually beneficial relationship with the travel agent community.”
Having founded several highly successful airline ventures, including JetBlue, Neeleman is particularly upbeat about the prospects for his new venture. “This is the right place at the right time. As a Brazilian, I’m excited to be back in Brazil developing the Brazilian airline market with a Brazilian made aircraft.” Based on his record to date, Mr. Neeleman appears to have found a winning formula and Brazilians should expect an airline focused on safety, high quality and low costs, which will produce exceptional value to its shareholders, its employees and its customers.
For further information, please contact:
Gareth Edmondson-Jones
Mobile: 1-347 327-6613
In Brazil:
Egom Assessoria de Imprensa
Marcela Matos / Silvana Pereira
Phones: (55-11) 3873 3058/ 3865 0838
Mobile: (55-11) 8274-123
E-mail: [email protected]
03-28-2008, 06:40 AM
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