Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) is set to proceed with an outstanding order with Embraer (EMB, São José dos Campos Professor Urbano Ernesto Stumpf) for up to fifty E195-E2s after threatening earlier this week to either defer or cancel the order.
The Brazilian domestic operator's president, Antonoaldo Neves, had warned that an amendment to the country's upcoming Regional Aviation Development Program involving the scrapping of the 60-seat limit in favour of subsidizing 50% of passengers on flights to Brazil's underserved towns would lead to it scrapping its Embraer order in favour of larger aircraft from either Airbus (AIB, Toulouse Blagnac) or Boeing (BOE, Washington National).
However, on Tuesday, the amendment's sponsor, Senator Fernando de Souza Flexa Ribeiro, and government ministers reached a deal restoring the 60-seat cap, Reuters reported.
According to its latest version, the BRL1billion (USD443million) program will subsidize carriers serving airports that handle up to one million passengers per annum while limited to 60 seats per flight. Subsidies will be used to offset fuel costs.
Azul is the country's most prolific operator of Embraer aircraft in addition to offering the most comprehensive domestic network.
Other operators such as TAM Linhas Aéreas (São Paulo Congonhas) and GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) have also alluded to plans to acquire Embraer aircraft so as to partake in the programme. TAM CEO Marco Antonio Bologna said earlier this week that his airline will make a decision on the aircraft type to be acquired in March 2015.
