Azul secures multi-million-dollar financing for 10 E195-E2 jets

Brazilian low-cost airline Azul Linhas Aéreas has secured a substantial $331 million financing deal from the National Bank for Economic and Social Development (BNDES), facilitating the addition of ten new Embraer E195-E2 jets to its fleet. The financing is a significant step for Azul, reinforcing its position in the market while promoting national economic growth.

In an announcement on August 3, 2024, BNDES revealed the landmark agreement with Azul. Valued at over $331 million (approximately R$ 1.9 billion), the deal marks the largest direct aircraft financing operation between the bank and a Brazilian airline. The move underscores the confidence in Azul’s business model and its future growth potential, highlighting the strategic collaboration between Azul, Embraer, and BNDES.

“The financing of Embraer’s new aircraft for Azul demonstrates a vote of confidence in our business and our future, generating jobs and income throughout the country. This also demonstrates the strength of three large genuinely national institutions: Azul, Embraer, and BNDES working together on behalf of Brazil,” said John Rodgerson, Azul’s Chief Executive Officer.

In the meantime, BNDES President Aloizio Mercadante highlighted the strategic alignment of the acquisition with the Brazilian government’s objectives to bolster the national economy, enhance tax revenues, and increase income levels. Mercadante pointed out that the deal not only supports the aviation sector but also contributes to Brazil’s broader economic goals, reinforcing the government’s commitment to fostering national industries.

Earlier, in April 2024, Azul had announced plans to receive 13 new E195-E2 jets by year-end. Since welcoming its first 136-seat E195-E2 in September 2019, the Sao Paulo-based carrier has expanded to a diverse fleet of 176 aircraft, maintaining an average age of 7.9 years. According to Planespotters.com registry, Azul‘s current fleet includes 40 ATR 42/72s, 57 Airbus A321 family aircraft, 11 A330 wide-body planes, 43 Embraer ERJ-195 narrow-body jets, and 23 E195-E2s.

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The fleet expansion is part of Azul’s broader strategy to modernize its fleet and improve operational efficiency. The new E195-E2 jets, renowned for their fuel efficiency and advanced technology, are expected to enhance Azul’s service offerings and help the Brazilian air carrier reduce its carbon footprint.The post Azul secures multi-million-dollar financing for 10 E195-E2 jets appeared first on AeroTime.

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