MIAMI – Azul Linhas Aéreas’ shareholders announced yesterday that the aircraft sub-lease agreement for Breeze Aviation had been approved during an Extraordinary General Meeting with 97% of the votes received.
Back in January of this year, Azul Linhas Aéreas (AD) announced an update to its five-year fleet strategy plan. The Brazilian airline had closed a deal to sub-lease 53 Embraer E195E1s to Poland’s LOT and to Breeze Aviation —David Neeleman’s newest aviation venture in the USA.
To replace the EJets E1s that AD plans to phase out in the next two years, the carrier had placed an order for 24 aircraft, taking the total to 75 EJets E2s, with deliveries scheduled until 2024.
AD currently has a total of 145 aircraft, broken down into 33 ATR 72-600s, 39 Airbus A320neos, one Airbus A321neo, eight Airbus A330-200s, two Airbus A330-900s, two Boeing 737-400(F)s, four Embraer E195 E2s, and 56 Embraer ERJ-190 E1s.
Transforming an entire fleet
John Rodgerson, Azul’s CEO, said, “I would like to thank our shareholders for helping us to accelerate the transformation of our fleet, the main source of our growth and margin expansion in the coming years.”
The CEO added, “In addition to providing additional flexibility to the fleet, each E1 replaced by a new generation aircraft will contribute to a significant reduction in our expenses, in addition to contributing to an increase in revenue generation. We look forward to replacing our entire E1 fleet with new generation aircraft by 2022.”
As determined by AD’s related party transaction policy, Azul’s controlling shareholder abstained from voting.