JetBlue founder and Chairman David Neeleman is collaborating with Brazilian planemaker Embraer Frederico Curado to launch a new airline in Brazil. Establishing the yet unnamed airline will commence early next year and be complete by 2013.
The new Brazilian airline will be based in the nation’s business center of Sao Paulo and will offer its customers leather seats, free satellite television at very low prices. The new airline will start with only three jets but will eventually expand to 76.
Yahoo! Finance reports that Neelman has raised $150 million and plans to finance all the expenses of the new airline.
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 like distance. As a result, there is a tremendous opportunity to stimulate airline demand with lower prices.
According to Daily Herald, by 2013, all 76 planned aircrafts would be operating throughout Brazil and especially its main cities.
Initial plans call for the upstart to take off next year with three aircraft, the first to be delivered later this year, and to have 10 aircraft by the end of 12 months and 36 in three years. Embraer said the new company this month registered a request for an operating certificate from Brazil’s National Civil Aviation Agency.
Neeleman is quoted commenting on his plans and the importance of building this new airline in Brazil.
“The prices that people pay here in Brazil are 50% higher than the prices people pay in the United States. Brazil is a country that needs more competition and a different kind of competition.”
Photo:© spackletoe
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