Brazil's Azul Airlines signs $850 million contract with ATR for 40 ATR 72-600 aircraft

This agreement, signed and announced at London's Farnborough Air Show, makes Azul the first airline in Latin America to place an order for the ATR -600 series aircraft. The deal is worth $850 million, including the options, and deliveries of the new aircraft will commence in late 2011.

The new ATR 72-600 fleet, in a 70-seat configuration, will enable Azul to continue expansion of its domestic regional network as it adds smaller regional routes. Azul currently serves 21 destinations in Brazil with a mix of EMBRAER 190 and E-195 aircraft (with 106 and 118 seats each, respectively).

Azul also announced this week that the airline has purchased an additional five EMBRAER 195 jets, valued at $211 million, to be delivered this year. By December, Azul will operate a fleet of 26 EMBRAER jets.

Including the 36 aircraft ordered in March, 2008 (five E-190s and 31 E-195s), Azul now has a total of 41 firm orders, 20 options, and purchase rights for a further 20 EMBRAER aircraft. Together, with additional leased aircraft, Azul's EMBRAER fleet plan comprises 86 jets.

"We are extremely pleased to include Azul as a new member of the ATR family of operators," said Filippo Bagnato, Chief Executive Officer of ATR. "Azul gives ATR the opportunity to introduce the newest ATR '-600 series' into Brazil and Latin America, a country and a region with very high growth potential for regional transportation. Azul is a dynamic, rapidly-growing airline, and we are pleased to be part of their expansion and success."

"This is a great moment for all of us at Azul," said David Neeleman, Founder and Chairman of the Board of Azul. "Our commitment for this brand new fleet of ATR 72-600 will enable Azul to serve even more cities in the vast Brazilian territory, linking smaller communities with major cities with seamless connectivity between our jets and the new ATRs."

The new ATR 72-600 aircraft feature new technological enhancements, including a new avionics suite, redesigned cabin interiors, new PW 127Ms as standard engines, and up to additional 500 Kg on MTOW (Maximum Take-off weight) and MZFW (Maximum Zero Fuel Weight). These newest members of the ATR family of aircraft feature the lowest fuel consumption per passenger and CO2 emissions, thus consolidating ATR as the "Green Player" of the regional aviation.

The new ATR '-600 series' cabin, named Armonia, features new wider and lightweight seats, LED lightening and more cabin storage capacity.

ATR is well established in Brazil, where 37 of its aircraft are currently operated by 3 carriers. Today, ATR has 25 carriers operating 106 aircraft in Latin America.

Azul took delivery of its first Embraer aircraft in December 2008. It began operations a few days later, out of Viracopos Airport (VCP), in the city of Campinas, outstate Sao Paulo, to Porto Alegre and Salvador. The airline currently serves 21 cities in Brazil and continues to expand the number of destinations. It has carried more than three million passengers in 18 months of operation. With a range of 2,300 nautical miles (4,260 kilometers), the jet is able to fly nonstop on any route between Brazil's capital cities.