Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) looks for options to reduce the number of first-generation Embraer jets in its fleet and replace them with Airbus A320neos as well as E195-E2s.
The airline is reportedly trying to reduce the number of the oldest regional jets in its fleet for which it pays disproportionately high leases as it secured those aircraft in the beginning of its operations, having no financial history. It currently has the best cash position and the lowest leverage ratio among the major Latin American carriers, CEO John Rodgerson said during a recent investor call.
The older Embraers will be replaced with both A320neos and EMB-195 E2s, of which Azul has ordered a total of forty-one, including thirty directly from the manufacturer, eight from AerCap and three from Aircastle.
By 2020, the airline wants to retire all first-generation Embraers leased-in during the early years of the airline, it said during the call, in order to better utilise its limited pool of pilots and limit unit cost. This will most likely include nine E190s which according to the ch-aviation fleet database are all at least eight-year-old. The regional jets are leased from Falko Regional Aircraft, Nordic Aviation Capital and Macquarie AirFinance. A tenth EMB-190, owned directly by the airline, is 7.9-years-old.
The airline also operates a fleet of sixty E195s, out of which five are over eight years old. The replacement will most likely include the four oldest aircraft, in particular, all of which are leased from ICBC Financial Leasing.
Azul has, to date, ordered thirty-five A320neos directly with the manufacturer and a further twenty-eight from lessors. It is unclear whether the airline is looking to increase the order, hoping to secure better leasing rates given its low debt and good financial standing, or simply to speed up the deliveries of the already ordered aircraft.
