Neeleman Airline Places Jumbo Jet Order

The private equity-backed low cost Brazil airline venture from David Neeleman, former CEO of JetBlue, has placed $1.4bn in firm orders for 36 Embraer E-195 jets and has options for another 20 and purchase rights for a further 20, which would bump the total spend up to $3bn. Routes, cities and timing for the as yet unnamed start up are still being worked out, says Gareth Edmonson-Jones, a spokesman for Neeleman. Hughes Hubbard & Reed advised Neeleman while Mayer Brown Rowe and Maw advised the private equity consortium. No investment banks were involved in the process. “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,” says Neeleman. “The Brazilian market is ready for a third major airline and that there is sufficient untapped potential to support all of us,” he adds. Neeleman pledges to make money with fewer passengers than his competitors.