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Old May 7th, 2010, 05:59 AM   #301
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Brazil’s Embraer admits possibility of abandoning operations in China
[ 2010-05-06 ]

Sao Paulo, Brazil, 6 May – The Brazilian aeronautics company Embraer will decide by August whether to maintain its factory in China or leave the country, the company’s investor relations director, Luiz Carlos Aguiar, has stated in Sao Paulo.

Brazilian press reports indicate that during a Wednesday meeting with analysts to comment on the company’s results, Aguiar justified his statement by saying that Embraer is facing many difficulties in obtaining aircraft import licences from the Chinese government.

“We are waiting to see what happens next regarding the licences. We very much want to stay in China, but this way it’s impossible to honour contracts,” he said, adding that the company has signed contracts but cannot move forward with them without the licences.

With the import licence, the company has seven Embraer 145 models guaranteed, along with 20 Embraer 190 models.

To operate in China, Embraer created a partnership in 2003 with the Chinese companies Harbin Aircraft and Hafei Aviation Industry, both controlled by China Aviation Industry Corporation II.

Harbin Embraer Aircraft is located in Harbin, the capital of Heilongjiang province, and produces aircraft for the Chinese market. Its models are similar to those built at the company headquarters in Sao Jose dos Campos, 90 kilometres from Sao Paulo in Brazil. (macauhub)
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Old May 7th, 2010, 06:00 AM   #302
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Delta Air Lines approved for Sao Paulo flights

Karachi News.Net
Thursday 6th May, 2010

The US Department of Transportation has given Delta approval for flights between Delta’s Detroit hub and South America.

The airline will be permitted to fly a twice-weekly service to Sao Paulo, Brazil from October 21st.

Airline officials have said they believe the new Brazil service will strengthen the airport's importance as an international gateway.

Delta has been expanding its overseas routes from Detroit, with flights already expanding into Hong Kong and Seoul from June.
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Old May 7th, 2010, 06:01 AM   #303
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Lan Seeks to ‘Deepen’ Relationship With Brazil’s Tam
May 06, 2010, 6:22 PM EDT

By Matthew Craze

May 6 (Bloomberg) -- Lan Airlines SA, Latin America’s biggest carrier by market value, said it aims to “deepen” its relationship with Tam SA, Brazil’s biggest airline.

Finding a partner in Brazil is an important step for Lan, Chief Executive Officer Enrique Cueto said in an interview today at an investment conference in Santiago. Talks between the two companies have stalled and Lan may also seek a relationship with Tam’s Brazilian rival Gol Linhas Aereas Inteligentes SA, Cueto said. Lan and Tam signed a code-sharing alliance in 2007 to expand their Latin American flight coverage.

“We have a very good alliance with Tam and we would like to deepen it with them, or with Gol,” Cueto said.

Lan is seeking to enter a Brazilian market that Sao Paulo- based Gol estimates will grow as much as 18 percent this year. Brazilian law restricts foreign ownership of airlines, forcing Lan to seek a partnership with a Brazilian company.

Lan, based in Santiago, fell 163.4 pesos, or 1.7 percent, to 9,510 pesos today. The company’s stock has risen 65 percent in the past year.

Air traffic within Latin America will continue to grow as the region’s economies expand, Cueto said.

For related news and information:
To contact the reporter on this story: Matthew Craze in Santiago at [email protected]
To contact the editor responsible for this story: James Attwood at [email protected]
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Old May 7th, 2010, 06:02 AM   #304
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Airlines - BRIC (Brazil, Russia, India, China) Industry Guide - New Market Report Published

New report provides detailed analysis of the Travel market

Published on May 06, 2010

Our Airlines - BRIC (Brazil, Russia, India, China) Industry Guide is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) Airlines industry. The report includes easily comparable data on market value, volume, segmentation and market share, plus full five year market forecasts. It examines future problems, innovations and potential growth areas within the market.

The report :- Contains an executive summary and data on value, volume and segmentation. Provides textual analysis of the industry's prospects, competitive landscape and profiles of the leading companies. Incorporates in-depth five forces competitive environment analysis and scorecards. Compares data from Brazil, Russia, India, and China, alongside individual chapters on each country. .. Includes a five-year forecast of the industry


The BRIC Airlines market grew by 15.2% between 2004 and 2008 to reach a value of $57.2 billion.

In 2013, the market is forecast to have a value of $99.9 billion, an increase of 11.8% from 2008.

India was the fastest growing country with a CAGR of 30% over the 2004-08 period.

Why you should buy this report. Spot future trends and developments. Inform your business decisions. Add weight to presentations and marketing materials. Save time carrying out entry-level research

Market Definition

The airlines industry comprises passenger air transportation, both scheduled and chartered, but excludes air freight transport.

Industry volumes are defined as the total number of passengers enplaned at all airports within the country or region. Industry value is defined as the total revenue obtained by airlines from transporting these passengers. This avoids the double-counting of passengers.

All currency conversions in this profile were carried out using constant average annual exchange rates.

Airlines - BRIC (Brazil, Russia, India, China) Industry Guide: http://www.companiesandmarkets.com/r...a43c3975ffad58
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Old May 8th, 2010, 02:48 PM   #305
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May 4, 2010, 12:00 p.m. EDT ·

Delta Air Lines Receives Approval for First Flights Between Detroit Hub and South America

Twice-weekly service between Detroit and Sao Paulo will begin Oct. 21

DETROIT, May 4, 2010 /PRNewswire via COMTEX/ -- Delta Air Lines (DAL 11.70, -0.02, -0.17%) today announced it has received approval from the U.S. Department of Transportation (DOT) to operate twice-weekly service between its Detroit Metropolitan Airport hub and Sao Paulo, Brazil. The new service, which will begin Oct. 21, is currently available for purchase at delta.com and other ticketing channels.

"We are gratified the Department of Transportation quickly approved our proposal to link Sao Paulo, South America's largest business market, with our Detroit hub," said Andrea Fischer Newman, senior vice president - Government Affairs. "Our new service to Brazil will strengthen the airport's importance as a leading international gateway."

To celebrate the new service, Delta is offering special introductory fares* starting at $449 each way (based on round-trip purchase) on flights between Detroit and Sao Paulo. Availability at these fares is limited, and tickets must be purchased by May 24 for travel between Oct. 21 and Dec. 10, 2010. Additional taxes, fees, restrictions and baggage charges may apply. Additional details are included below*.

Delta's schedule between Detroit and Sao Paulo starting Oct. 21:

Flight - Departs - Arrives - Frequency
205 - Detroit at 5:45 p.m. - Sao Paulo at 6:15 a.m. (next day) - Thursday, Sunday
204* - Sao Paulo at 10:15 p.m. - Detroit at 7:20 a.m. (next day) - Monday, Friday

*Effective Oct. 22, 2010

Delta will operate the flights using 216-seat Boeing 767-300ER aircraft with 35 seats in BusinessElite and 181 seats in Economy Class. Delta's award-winning BusinessElite service features new bedding with a full-size pillow and quilted duvet comforter, Chef Michelle Bernstein's cuisine featuring larger entree portions and Sommelier Andrea Robinson's upgraded wine program. BusinessElite customers also enjoy a full-menu pre-departure beverage service, PC power and state-of-the-art, on-demand entertainment system, priority check-in and baggage claim. Delta is in the process of upgrading all of its international widebody aircraft, including the 767-300ER, to include full flat bed seats in BusinessElite.

The new Detroit service will create a second competitive gateway to Brazil from the Midwest region and build on Delta's continued expansion in the Detroit market, which includes new nonstop service to Hong Kong and Seoul-Incheon beginning in June. Delta also has an application pending with the DOT for nonstop service between Detroit and Haneda Airport in Tokyo. The new routes have been enabled by Delta's merger with Northwest Airlines, which was completed last year.

Delta also has a pending application with the DOT to expand service to daily between Detroit and Sao Paul in the future as additional frequencies become available.

Delta serves 138 destinations from its Detroit hub, including 16 international destinations. Delta customers flying at Detroit Metropolitan Airport enjoy service at the state-of-the-art, 120-gate terminal designed specifically for international connections. Detroit's airport was recently ranked No. 1 among large airports in overall customer satisfaction by J.D. Power and Associates.

Between Brazil and the United States, Delta currently offers more than 30 nonstop weekly flights. This includes service between Atlanta and Sao Paulo, Rio de Janeiro, Fortaleza, and Manaus; and service between New York-JFK and Sao Paulo. In December, Delta became the first and only U.S. airline to offer nonstop service from the United States to Brazil's capital city, with flights between Atlanta and Brasilia.

Delta Air Lines serves more than 160 million customers each year. With its unsurpassed global network, Delta and the Delta Connection carriers offer service to 367 destinations in 66 countries on six continents. Delta employs more than 70,000 employees worldwide and operates a mainline fleet of nearly 800 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France KLM. Including its worldwide alliance partners, Delta offers customers more than 16,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

*Terms and Conditions: Fare shown available at delta.com. Tickets cost $20 more if purchased from Delta over the phone, $35 more at a Delta ticket counter or ticket office, and these amounts are nonrefundable. Tickets are non-transferable. Seats are limited. Tickets: Fare shown is one-way. Round-trip purchase is required. Tickets must be purchased 24 hours after reservations are made, but no later than May 24, 2010.Travel Period: Travel may begin on or after October 21 through December 10, 2010 and must be completed by December 17, 2010; Blackout Dates: None Fare Validity: Fares are valid in the Economy (Coach) cabin via non-stop flights only. Fares shown are valid Monday through Friday, while higher fares apply for travel Saturday through Saturday. Minimum Stay: Saturday night. Maximum Stay: 1 month or December 17, 2010, whichever is earlier. Cancellations/Refunds/Changes: Tickets are nonrefundable except in accordance with Delta's cancellation policy. Fees may apply for downgrades/reissues and itinerary changes. Contact a Delta agent or visit delta.com for details. Taxes/Fees: Federal Excise tax of $3.70, Passenger Facility Charge(s) of up to $4.50, and the September 11th Security Fee of up to $2.50 for each flight segment are not included. For travel to/from Hawaii/Alaska, U.S. International Air Transportation Tax of up to $16.20 is not included. International fares do not include U.S. International Air Transportation Tax of up to $32.20 and U.S. and foreign user, inspection, security or other similarly based charges, fees or taxes of up to $299 depending on itinerary. Taxes and fees must be paid when the ticket is purchased. Baggage Charges: For travel within the United States/PR/U.S. Virgin Islands and to/from Canada, $23 USD/CAD* fee for 1 checked bag and $32 USD/CAD* fee for second checked bag when bags are prepaid during online check-in at delta.com. There is a $2 USD/CAD surcharge for the first bag, $3 USD/CAD for the second bag, when checking in via ticket counter, kiosk, or curbside. For all other travel, no fee for 2 checked bags (50 USD/CAD/EUR fee for travel to/from Europe for second checked bag when bags are prepaid during online check-in at delta.com, 55 USD/CAD/EUR fee for second bag when checking in via ticket counter, kiosk, or curbside) and 200 USD/CAD/EUR fee for third checked bag. Allowances are subject to size/weight limits. Contact a Delta agent for details. SkyMiles Partner Offers: Partner offers subject to the terms and conditions of each individual offer. Partners subject to change. All SkyMiles program rules apply. To review the rules, please visit delta.com/memberguide. Miscellaneous: Fares, taxes, fees, rules, and offers are subject to change without notice. Other restrictions may apply.

SOURCE Delta Air Lines

Copyright (C) 2010 PR Newswire. All rights reserved
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Old May 11th, 2010, 02:21 PM   #306
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Brazil Firms Promote Use of Biofuels in Aviation

SAO PAULO – Aircraft manufacturer Embraer announced Monday the formation of the Brazilian Alliance for Aviation Biofuels, or Abraba, to promote “the development and certification of sustainable biofuels” for use in air transport.

Abraba’s efforts will center on “dialogues with creators of public policy,” Embraer said.

The 10 member institutions were moved to establish Abraba based on considerations of cost and protecting the environment and on Brazil’s recognized leadership in biofuels, the world leader in regional aircraft said.

Civil aviation accounts for roughly 2 percent of global emissions of carbon dioxide, according to data from the U.N. Intergovernmental Panel on Climate Change.

Embraer’s partners in Abraba include the airlines TAM, Gol, Azul and Trip, sugar industry group Unica, Algae Biotecnologia, Amyris Brasil and the AIAB association representing Brazil’s aerospace sector.

Brazil leads the globe in exports of ethanol made from sugarcane. EFE
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Old May 17th, 2010, 04:48 PM   #307
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TAM Airlines Joins Star Alliance

Published by Ozgur Tore
SUNDAY, 16 MAY 2010

TAM Airlines, the leading Brazilian carrier, joined the Star Alliance network, thereby putting the world's longest serving airline alliance firmly back on the South American continent.

"Our integration into the world's leading global commercial aviation alliance will allow us to expand our services, offering our customers a smooth and integrated travel experience. There will always be a partner airline that will treat our customers as their own anywhere across the globe," said Líbano Barroso, CEO of TAM Airlines. "Our brand is now global, and Star Alliance now has a strong presence in South America."

TAM Airlines offers more than 40 destinations in Brazil and 10 airports across South America. Over the past years, the airline has expanded its intercontinental network to cover a variety of destinations in the USA and Europe, many of these being Star Alliance hubs. All in all, the Star Alliance network now counts 27 member carriers, offering more than 21,050 daily flights to 1,167 destinations in 181 countries.

"With TAM Airlines we gain a carrier based in South America, an important aviation market and home to many growing economies. Combining TAM Airlines' network with that of our existing member carriers will allow Star Alliance to offer a very competitive product to, from and within this region," said Jaan Albrecht, CEO Star Alliance.

TAM Airlines' joining completes a process which originally began in 2006 with the first informal negotiations.

"An intense information and experience exchange process resulted from the first contact," explained Paulo Castello Branco, Vice President, Commercial and Planning, TAM Airlines. "After the official announcement of our acceptance as a future Star Alliance member in October of 2008, we started to align our operating processes, which involved our functional team at all levels, as well as those of all of our partner carriers. This was a great learning experience and a fundamental step towards our global expansion."

As a result, TAM Airlines has not only increased the Star Alliance network offer, but is now providing a wide range of customer benefits.

TAM's Fidelidade customers now collect and redeem points when travelling on all other Star Alliance member carriers. By the same token, participants in the other member carriers' Frequent Flyer Programmes (FFP) earn points every time they fly TAM Airlines and can redeem points on the TAM network. An added alliance benefit is that travel on any Star Alliance member carrier counts towards achieving status in the selected FFP. One of the Star Alliance Gold membership benefits is Lounge access; with TAM Airlines the number of designated Gold Lounges across the network has grown to over 990.

Corporate customers have long been a main target group of the Star Alliance network. Through TAM Airlines, our offer to the vast corporate market in Brazil - South America's largest economy - has gained in value. Christopher Korenke, Star Alliance Vice President Commercial: "With TAM Airlines we now have a very comprehensive product in the local market and have expanded our reach for those needing to travel to Brazil and South America. This is an important selling point when dealing with large corporate customers in Brazil."

Additionally, flights operated by TAM Airlines will be included in both Star Alliance Conventions Plus and Meetings Plus, enhancing the value proposition of these products. Convention and meeting organisers based in South America can use the enlarged Star Alliance network to contract their travel requirements. Furthermore, organisers based in other parts of the world can now rely on Star Alliance to provide delegate transport from many additional destinations in South America.

Leisure travellers as well will stand to benefit from TAM Airlines' membership in Star Alliance. The popular Round the World Fare now offers numerous new travel combinations throughout Brazil and South America, as well as more flights between Brazil and Europe, and Brazil and the USA. Moreover, TAM will be selling the North America and Europe Airpasses, allowing customers to purchase "value-for-money" air travel on the Star Alliance network in these regions in combination with a long-haul ticket from Brazil.
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Old May 18th, 2010, 01:14 AM   #308
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Tam poised to break BA's London-Rio monopoly

Monday, May 17, 2010
Gary Noakes in Brazil

Brazilian airline TAM is to break the British Airways monopoly on the London-Rio de Janeiro route from late summer.

Speaking in Sao Paulo as TAM marked its entry into the Star Alliance, TAM’s UK and Ireland general manager Sue Faithfull said plans were in the final stages of preparation for the launch, likely to be in August or September.

“We are determined to do it, but we still have to dot the Is and cross the Ts,” she said. “Initially it will be three flights a week.”

Faithfull admitted TAM was still talking to authorities about getting slots at Heathrow, but said she hoped to get a result very soon.

TAM will use a brand-new Airbus A340 with a three-class cabin, allowing it to be a serious contender to BA, which has had the route to itself since Brazilian airline Varig ceased flying to Europe about four years ago.

TAM already operates daily from Heathrow to Sao Paulo, the country’s commercial centre and main air travel hub.

TAM is Star Alliance’s 27th member and brings the alliance back into South America, a region it effectively lost when Varig, the former state-owned member, downsized to become a regional carrier. TAM, which is privately-owned, is now included in Star’s Round the World fare and the alliance’s frequent flier programme.

Star Alliance will add Olympic Air to its membership this summer. Air India will follow next year and there are indications that Ethiopian Airlines and Panama’s Copa Airlines will seek admission.

Star chief executive Jaan Albrecht said there were still gaps in the alliance’s network despite its size. He would not be drawn on new members, but said:“Our main focus for the future is Africa. We are also talking to airlines in South America and the Caribbean.”
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Old May 18th, 2010, 12:52 PM   #309
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Brazilian Aviation Biofuels Alliance is founded


Aviation companies, biofuel producers, and the sugar cane, algae and jatropha industries have come together to form the Brazilian Aviation Biofuels Alliance, which seeks to "promote public and private initiatives to develop and certify sustainable biofuels for aviation". The entity, named Aliança Brasileira para Biocombustíveis de Aviação (ABRABA), seeks to reduce carbon emissions and boost energy efficiency.

The aviation companies Azul Líneas Aéreas Brasileñas; Embraer – Empresa Brasileña de Aeronáutica S.A.; GOL Líneas Aéreas Inteligentes; TAM Líneas Aéreas and TRIP Líneas Aéreas have joined this alliance.

The Brazilian Association of Jatropha Producers (Associação Brasileira dos Produtores de Pinhão Manso – ABPPM), the Sugar Cane Industry Union (UNICA), The Brazilian Aerospace Industries Association (AIAB), and the biotechnology companies Algae Biotecnología and Amyris Brasil join them.

Other entities are expected to join the alliance, which is aware that civil aviation produces about 2% of carbon dioxide emissions, according to studies by the United Nations Intergovernmental Panel on Climate Change.

According to a statement released by the alliance, ABRABA argues that "the use of sustainable biofuels produced from biomass is key to maintaining the growth of the aviation industry within a low carbon economy".

Its members conclude that: "The proven ability of Brazil to develop alternative energy sources, combined with its knowledge of aviation technologies, will result in a significant gain for the environment by minimizing the impact on economic development".

For additional information:
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Old May 21st, 2010, 01:23 AM   #310
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Brazil's Ambassador Seeks More Delta Flights for World Cup, Olympics

David Beasley
Atlanta - 05.20.10

With Brazil hosting two of the world's largest sporting events, the 2014 World Cup soccer tournament and the 2016 Summer Olympics, the nation's ambassador to the United States paid a visit to Delta Air Lines Inc. headquarters May 19 seeking more flights.

"We need a lot of investment in infrastructure and also need more flights from all over the world to transport passengers to both events," the ambassador, Mauro Vieira, told GlobalAtlanta. "We count very much on Delta to increase the flights to Brazil and to more cities in Brazil. We want to bring the two countries together. A big airline like Delta will have a big role in that."

Edward Bastian, Delta's president, met with the ambassador and told GlobalAtlanta that the airline will seriously consider the request for more service. The airline is excited about launching a new flight from Detroit to Sao Paulo later this year, he added.

"Brazil is a very important market for Delta as we seek to grow our services throughout the globe," Mr. Bastian said. "We're looking for new opportunities to expand service throughout Brazil."

Delta currently flies from Atlanta to the Brazilian cities of Sao Paulo, Rio de Janeiro, Manaus, Fortaleza and Brasilia. It also flies to Sao Paulo from New York. The twice weekly Detroit-Sao Paulo flights will begin in October.

While in Atlanta, Mr. Vieira also met with Georgia Gov. Sonny Perdue and Atlanta Mayor Kasim Reed.

In addition, he attended a conference of the U.S-Brazil Joint Action Plan to Eliminate Racial and Ethnic Discrimination and Promote Equality at Morehouse College. At the conference, U.S. and Brazilian government officials and private sector representatives held discussions on issues such as environmental justice, civil rights and education, and racial equality in the justice system.

Current Delta Airlines Flight Map between the USA and Brazil:
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Old May 27th, 2010, 06:38 AM   #311
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Embraer 190 jet exhibited at 3rd annual Brazilian Civil Aviation Fair


Embraer will participate in the 3rd Brazilian Civil Aviation Fair on May 29 and 30, at Congonhas Airport (CGH), in São Paulo. The event was created in 2008 for the purpose of bringing information on the aviation world to the general public. The first edition was held in Brasília, and the second in Rio de Janeiro, in 2009. This year, Embraer will display the well-received EMBRAER 190 commercial jet, which is a member of the E-Jets family that operates in Brazil in the livery of Azul and TRIP airlines.

“As in the previous editions, Embraer could not miss supporting this event that has been growing in importance, both for the aviation market and the public, in general, who are interested in aviation,” said Emilio Matsuo, Embraer Executive Vice President, Technology. “For Embraer, this is another excellent opportunity to showcase the EMBRAER 190 jet and the E-Jets family, which are aircraft that now fly in the livery of some of the world’s main airlines.”

The E-Jets family consists of four airplanes with capacities for 70 to 122 passengers. Their modern design, with two seats on each side of the corridor, eliminates the undesirable middle seat. The absence of supports under the seats and the existence of ample overhead bins offer passengers more space and comfort. The airplane also has an entertainment system with individual monitors, and has the most advanced technology, in terms of onboard avionics, with an electronic fly-by-wire control system.

Every year, the Brazilian Civil Aviation Fair attracts more and more people. There were over 20,000 visitors at the first edition, and 50,000 last year. At this edition, Embraer will also present a traveling display that summarizes the history of the Company that was founded in 1969. The fair is open from 9:00 a.m. to 5:00 p.m., and there is no entrance fee. People can collaborate with the organizers by donating one kilogram of non-perishable food.

E-mail your press releases, news tips and feedback to the CharterX News Editor at [email protected]
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Old May 28th, 2010, 03:14 PM   #312
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GOL upgraded, TAM downgraded by Fitch Ratings; Latin American carriers post rise in traffic

28th May, 2010

North and South American carriers rose again on Thursday (27-May-2010) boosted by gains in the wider market, after China denied reports it was planning to sell European bond holdings. The Dow (+2.9%) ended trading higher as a result.

In South American markets, Brazil’s Bovespa (+3.2%) and Chile’s IPSA (+0.7%) on gains in the US.

Latin American carriers post rise in traffic despite ash crisis

South American carriers were among the biggest gainers of the day, after IATA stated Latin American carriers posted a 1.2% year-on-year increase in international demand for Apr-2010. However, this was well below the 4.6% growth recorded in Mar-2010, which was already a weak month as a result of the Chilean earthquake.

Their North American counterparts posted a 1.9% decline in international demand last month, primarily as a result of the ash crisis on North Atlantic routes. This was a step backwards from the 7.8% growth recorded in Mar-2010. The fall in demand was less than half the 4.5% cut in capacity, pushing load factors up to 80.2%.

See related report: IATA sees May traffic rebound, slams unions for European unrest

GOL upgraded, TAM downgraded by Fitch Ratings

Fitch Ratings upgraded Gol Linhas Aereas Inteligentes SA's (+7.3%) ratings as follows:

Foreign and Local Currency long-term Issuer Default Ratings (IDRs) to 'BB-' from 'B+';
Long-term National Rating to 'A-(bra)' from 'BBB(bra)'.
Fitch has also upgraded the ratings of GOL's perpetual notes (USD200 million) and senior notes (USD200 million) to 'BB-' from 'B+/RR4'. The Rating Outlook is stable.

Fitch stated the rating upgrade reflects the company's consistent improvements in cash flow generation, comfortable liquidity and continued decline in leverage during the past several quarters. The upgrade also factors-in expectations that the company will continue lowering its net leverage, while maintaining an ample cash position. The company is exposed to fuel cost volatility and other industry-related risks, such as revenue volatility, high operating leverage and increasing competition. The ratings incorporate the high degree of sensitivity of GOL's operations to changes in the macroeconomic scenario.

The Stable Outlook reflects expectations that GOL will maintain its solid market position as Brazil's second-largest airline and that the company will continue to benefit from stronger domestic demand for domestic air travel in the business and leisure segments following the recovery in Brazil's economy.

Meanwhile, TAM’s (+6.9%) credit ratings were adjusted as follows:

Foreign and local currency long-term Issuer Default Ratings (IDRs) to 'B+' from 'BB-';
USD300 million senior unsecured note due to 2020 to 'B+/RR4' from 'BB-';
USD300 million senior unsecured note due to 2017 to 'B+/RR4' from 'BB-';
Long-term national rating to 'BBB+(bra)' from 'A-(bra)';
BRL500 million debentures issuance due 2012 to 'BBB+(bra)' from 'A-(bra)'.
The Rating Outlook for the long-term corporate ratings is revised to stable from negative.

Fitch stated the downgrades reflect the deterioration in TAM's credit profile due to higher leverage levels as a result of lower operating cash generation. TAM's weak performance largely reflects lower RASK levels (lower yields and load factors) as a result of the adverse operating environment for the airline industry during the first part of 2009 and the strong competition in the market over the past several quarters. Despite the strong recovery of the domestic market, yields are expected to show only a modest recovery and the company's decision to further expand its fleet should limit the benefits of growing market demand on its load factors. The Outlook revision to stable reflects Fitch's expectations that the company's net leverage will not recover in the near term and will remain around 6.0 times, which is consistent with the assigned rating category.

Elsewhere, Copa (+5.9%) also gained.

America Airline Daily is your one-stop shop for news, data and analysis from the dynamic North American, Caribbean and Latin American aviation markets. Other stories featured in today’s issue include:

Allied Pilots Association voices support for Spirit Airlines’ pilots;
Hawaiian Airlines CEO signs new three-year contract extension;
JetBlue's New York to Nantucket nonstop flights return;
US Airways reduces fares at Bangor Airport;
Air Canada stockholders approve share increase despite union opposition.
North & South America selected airlines daily share price movements (% change): 27-May-2010

Source: Centre for Asia Pacific Aviation & Yahoo! Finance
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Old June 1st, 2010, 01:15 PM   #313
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BRASILIA, June 1 (NNN-MERCOPRESS) - Airports in the major cities of Brazil that will be hosting the World Cup in 2014 and the Olympic Games in 2016 are working at their maximum capacity.

Eight of them are described as “in the edge of operational collapse” according to a report from the Applied Economics Research Institute in Sao Paulo, IPEA.

The worst case in Manaus but in Sao Paulo air terminals are also at over capacity at peak hours

The report from the federal government office warns that there is a serious risk of a “logistics blackout” in the air travel industry unless immediate investments are initiated.

The most serious case involves the city of Manaus, in the Amazon region which at peak hours is technically prepared to deal nine landing and take off operations but is currently handling 17.

“The situations considered serious and of concern are those when the use of existent capacity is above 80%.

Critical cases are those when the operational capacity is clearly overwhelmed and results in a deterioration of service level. In these cases, depending on the percentage reached, the situation is considered as on the verge of operational collapse”, said the IPEA report.

The airports Congonhas and Guarulhos from the metropolis of Sao Paulo, which will host the World Cup 2014 semi-finals are also under extreme strain.

Congonhas capacity is 24 landing and take off operations to the hour but at peak times has to deal with 34, while Guarulhos the situation is 53 at normal rate and 65 on peak demand.

The IPEA report does not include other 2014 World Cup city airports such as Cuiabá, Salvador, Fortaleza and Recife but the situation in these air terminals is also “of great concern”.

Last Oct the Brazilian Airports Infrastructure Corporation, Infraero announced an investment of US$7 billion in 16 terminals with the purpose of increasing the capacity of airports in major cities hosting the 2014 Cup by 66.4%.
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Old June 2nd, 2010, 01:12 AM   #314
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Very true hakz2007!



Brazil's airlines (Part 1): Becoming prominent players in the global aviation development

1st June, 2010

In aviation among emerging nations, the two most commonly cited examples are China and India. Both have been much in the news. China's massive market continues to grow at double digit rates and India in particular has been something of a supernova in the 21st century, with airlines appearing like mushrooms after a heavy rain—and some withering with equal speed. But in the global development spectrum, Brazil is also a prominent player. Sometimes overlooked in the aviation sector because it is half a world away from the (once-again) booming Asian market that is soon to emerge as the world’s largest, Brazil is fast developing a formidable airline capability, as this CAPA study reports.

Additionally, South America has had a complex political and economic history that has extended into the aviation sector, where airlines have appeared and disappeared on a regular basis.

There have been developments in Latin America that have made the news of late: LAN’s steady franchise expansion and Avianca’s acquisitions being two of the most prominent, but the real hub of South American aviation is Brazil and its slow, steady growth. In 2010, Brazil is on the march.

A large country, ideal for air services
The nation is the world’s fifth largest geographically and, with roughly 200 million inhabitants, also ranks fifth in population. It occupies the majority of the continent and borders every other nation except for Peru and Ecuador. The population, coupled with the nation’s abundant natural resources, provides the components necessary for continued growth.

In the recent past, Brazil has had a generally stable political environment and has seen steady economic growth. Despite that, income disparity remains not only a problem but also the root cause of occasional social unrest. At present the country enjoys a positive balance of trade and its GDP ranks it 104th globally.

A quick look at a map shows a nation ideally suited to air transport. The Atlantic coastline is the most populous region but stretches for almost 7,500km - a long way to drive. And much of the more sparsely populated interior lacks adequate surface connections. Rich in history and culture, there is an expanding tourist industry with roughly two-thirds of the country’s employment in the service sector.

According to the World Factbook, the nation has 4,000 airports, ranking 2nd globally, 721 of them with paved runways. And it is home to Embraer, one of the increasingly powerful players in civil aircraft construction whose products are surely a component of that positive trade balance.

Varig, the core of the country's airline system for most of the 20th century
One of Brazil’s citizens, Alberto Santos-Dumont, is known worldwide for his pioneering work in aviation. Dating to the early 20th century, the nation’s airlines have had a long and colorful history - there have also been quite a few of them.

The first major entrant was Varig, an acronym for Viação Aérea RIo Grandense, founded in 1927. Begun by a German immigrant, control of the airline passed to Ruben Berta when Brazil joined the allied cause in 1941; a German was owner deemed unsuitable under the circumstances.

Postwar, the structure of the company was curiously rooted in a Papal Letter issued in 1891 that stressed the importance of the pursuit of mutually beneficial goals for corporations and their employees. Brazil is the largest Roman Catholic nation on earth and Berta, in 1945, took this message to heart and established an employee foundation that eventually carried his name. It vested primary ownership of the airline in its employees, and the foundation provided employees with benefits such as medical and dental care, as well as low interest loans that were not available through the Brazilian government.

The arrangement was unique for decades and provided an internal motivation for staff that was not seen at companies elsewhere. In many ways it was the original ESOP.

Cruzeiro do Sur, later part of Varig
Also in 1927, former German directors of the Condor Syndikat, along with a Brazilian investor, founded another carrier, eventually known as Cruziero do Sur, to supplement operations of the growing Lufthansa. The carrier grew to have a substantial route network for its time, but like VARIG, lost its German roots when Brazil joined forces against the Axis powers and the company was nationalized and renamed.

The carrier remained nationalised until 1975 when the Ruben Berta Foundation, aka VARIG, bought a controlling share. Cruzeiro muddled along until 1993 when its remnants were fully integrated with VARIG.

Aerovias Brazil, also merged into Varig
In 1942 Aerovias Brasil was established by TACA, then intent on founding a national carrier in each Latin American country. The growing company was purchased outright by the State of Sao Paulo, which held the carrier until 1951. Then it was privatised and eventually ended up primarily owned by another postwar carrier, Real Transportes Aereos. Real dated to 1945, having been founded by two former TACA pilots.

By the 1950s the airline was linking Brazil with New York, Mexico City and Los Angeles with a fleet of Super Constellations. The LA flight was eventually extended to include Tokyo via Honolulu.

However, this carrier, too, proved incapable of sustaining itself and in 1961 was purchased by, and integrated into, VARIG. With this acquisition, VARIG became the fifth largest airline in the world.

Panair do Brasil, eventually Varig too
In 1929, yet another airline, NYRBA do Brasil (New York, Rio and Buenos Aires Line), was established. However, in the following year the parent company was acquired by Pan American and the company was renamed Panair do Brasil, SA. In its early years, the main competition was provided by the aforementioned Condor, but with the outbreak of the war, this competitor was eliminated. Following the war, it also began operating Constellations with a network that rapidly encompassed many European capitals.

By 1961, the airline had begun DC-8 service to Europe but was feeling increased competition from the expanding European flag airlines. The carrier was shuttered in 1965 by the military government and its routes were dispersed to VARIG and Cruzeiro; all of them eventually ending up as VARIG’s.

There is a pattern here as all corporate roads eventually lead to VARIG.

VASP, Transbrasil and Rio Sul
The airline name most familiar to many outside of Brazil will be that of VASP, yet another acronym for the full name, Viacao Aerea Sao Paulo. Founded in 1933 by the state government of Sao Paulo, its mission was to link the state’s interior regions to Sao Paulo. Its existence led to the building of Sao Paulo’s Congonhas airport, still in regular use today and originally known as Campo do VASP or “VASP’s airport”.

Primarily a domestic carrier, its ownership was privatised in 1990 and it began an aggressive international expansion. This change was not sustainable and the carrier stopped international flying in 2002, returning to its domestic roots (and routes). However, the carrier found itself at a disadvantage in the Brazilian market as well and authorities grounded the airline in early 2005. Repeated subsequent attempts to revive it failed.

While there were also Transbrasil and Rio Sul existing into the late 1980s, the clear winner in the late 20th century was VARIG. But it, too, was headed for a very rough landing.

A Downward Spiral
Despite collecting most of its sometime competition, Varig however was in decline for many years. A series of financial upheavals, sometimes high inflation made controlling costs hard, and the socially oriented leadership led to an airline that became very cost-heavy.

The chart that follows displays the changes in VARIG’s competitive situation since 1990. This is by no means a comprehensive listing of VARIG’s network and entirely excludes the carrier’s South American routes.

The cities chosen are those that were, or eventually became, hubs, and thus emerged as new challengers in the market.

Even a cursory glance shows that the 20-year period has encompassed a great many changes;

In 1990 the era of nonstop, as opposed to multi-stop, flights had yet to appear in the Brazilian market. Looking at Zurich, as an example, VARIG operated the following routings each week: RIO-SAO-ZRH vv., RIO-SAO-ZRH-AMS vv., SAO-RIO-PAR-ZRH vv. Most European service followed similar complex and irregular patterns.

* In its domestic market, there were similar “bus-stop” operations. RG 386 from Belem to Sao Paulo, a distance of 1525 miles, operated with a remarkable 7 stops and an elapsed time of 12 1/2 hours;
* Partly because of more limited range of the aircraft of the time, and partly because it was a bigger touristic draw, Rio was far better served than it is at present;
* In 1990, VARIG was the dominant player in Brazil’s international market, challenged only by a single Transbrasil flight to Orlando.

A decade later, the situation was vastly changed. Not only had both VASP and TAM entered the competitive fray, but the US challengers had also expanded their hubs, which added capacity and funneled traffic through newly-established transit points like Atlanta and Dallas.

* In Miami, VARIG’s monopoly hold on nonstop service to SAO was challenged by 5 new players: AA countered RG’s single flight with 3 daily nonstops.
* Codesharing had appeared and all flights, except those of VASP, carried multiple designations: UA and RG, AA and JJ, and TR and DL. There were 9 widebody nonstops on the MIA route each day.
* While many new carriers had entered the Brazilian marketplace with nonstop service, VARIG’s network had expanded to only three new points, Milan, Los Angeles and Madrid.
* In 10 years, RG had gone from being the biggest fish in a rather small pond to being a relatively small fish in a large lake, with its share of the market steadily declining.

By 2005, the carrier’s debts exceeded its assets and June of that year it applied for bankruptcy. Though it continued to operate a truncated network, the trajectory was irreversible and, over the next year, the once-proud carrier suffered numerous embarrassments, including seizure of one of its B777s at JFK due to default on payments.

Despite the implementation of numerous strategies, including the sale of various units, nothing worked and the company continued to disintegrate.

With government encouragement, there was a short-lived attempt by the low-cost carrier GOL to resurrect some of the international service that had been operated, but the brand disappeared completely in 2009 - an ignominious ending for a carrier that had been renowned for its excellent service and had been the symbol of Brazilian aviation for well over half a century.

But even as the old brands disappeared, new ones appeared and brought a stunning resurgence to Brazil’s air travellers.

Part 2 of this CAPA review of Brazilian airlines looks at today's marketplace.
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Old June 5th, 2010, 05:44 AM   #315
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Brazil's airlines Part 2: the modern, post-Varig era

4th June, 2010

Since the demise of Varig, the once-famous airline always closely associated with the magic of Brazil, the country's airline industry has thrived, as economic growth and stable government created favourable conditions. The second of a three part CAPA report on the country's airlines.

A new breed of modern airline

As noted in Part 1 of this report, Brazilian aviation began in 1927 and spent the next 70 years condensing itself primarily into a single entity, Varig. But by the 1990s Varig was gradually slipping into a decline from which it would not recover. Though its name survived for another decade, the new century was to see the emergence and ascendancy of new companies and a revamping of the way that Brazil, and its market, were served.

In 2010, the schedules across the country are dominated by airline codes that have either been established, or hit their stride, in the 21st century. Instead of RG, VP, SC and TR, travel today is on O6, JJ, G3 and AD. This total transformation of the market players is virtually unrivaled anywhere else in the world. This report reviews the new alphabet.

A strong growth market, with airlines to match

Brazil’s airlines are clearly focused on continued growth. The nation has had growth rates in the 5%+ range for the past several years and that steady economic development is producing an ever-larger pool of potential customers. As the following chart shows, there is no shortage of customers, especially in the domestic sector.

In the past year, not famous for aviation success stories, the overall Brazilian market grew at 13%, despite a reduction in international passengers.

Looking at the cumulative effect over the entire period, the domestic market has grown far faster and had a far greater impact on the total market growth than is seen in international traffic. In 2009, international passengers accounted for less than 10% of the total, showing that this expansion is home-grown and explains why so many new ventures have emerged in the past few years.

Oceanair (O6)

Begun as an air taxi service in 1998, Oceanair was acquired by Colombia’s Synergy Aerospace (Avianca’s parent) in 2002 and has been the only foreign-owned operator in the domestic market. Operating a fleet of former American Airlines F-100s, it is currently a minor player in the market. Recently it shed the Oceanair name and has been rebranded as Avianca of Brasil, operated as a subsidiary of the Colombian airline.

The Avianca parent currently has substantial aircraft orders outstanding, including both long and short-medium range models. Statements made by the Avianca group indicate that some of those aircraft will be utilized as replacements for the F-100s in Brazil; expansion into the international marketplace has also been predicted. Initial forays would most likely be within the Americas, with connections to and over Bogota also probable.

The airline’s current domestic network is heavily concentrated in the Eastern part of Brazil, and focused on the more densely populated cities, with a current active fleet of 15 aircraft.

However, despite its small size in Brazil, the Avianca group is a growing presence in South and Central America with the potential to, like LAN, have a diffuse presence across the region.

GOL (G3)

Gol Transportes Aéreos is a newcomer to the market, having begun its operations in 2001. Interestingly, it was begun by a private company which ran a long-distance bus line, a unique – and very practical - heritage in an industry more generally associated with glamour and flash.

Like other new generation airlines established in elsewhere, the founders of GOL completely understood both the geography in which they would operate as well as the requirements - and financial wherewithal - of their customer base. The product, even over long distances, needed to be centred on basic transportation, allowing a vast customer base economically to access the offer. Its target clientele, consisting largely of people who had never flown, knew nothing about “the glorious past” that had, and still does, bracket so much management thinking.

The airline borrowed heavily from the Southwest model and GOL’s mission statement contains much of Southwest’s business philosophy. Using an all B737 fleet, the airline has grown rapidly in the past nine years and has spread its network across borders; now connecting cities in Brazil with points in Argentina, Venezuela, Chile, Bolivia, Paraguay, Uruguay. Moving further north it added Curacao and Aruba, and most recently, Punta Cana in the Dominican Republic; an extension of the service to Caracas.

GOL route network

Source: GOL

The airline has shown spectacular growth over its short history, achieving virtual parity with TAM in terms of domestic market penetration. In the same period its fleet has grown from 6 to over 100 aircraft – with more on order.

But this has not been a tale of growth to gain dominance, perhaps part of the carrier’s success formula. Since achieving a substantial market share in 2007, GOL has more or less grown in proportion to the overall market.

GOL’s “market strength”

Source: GOL

Like many successful new generation carriers, GOL has defined its market and made a clear point of operating within set parameters. In recognition of Brazil’s unique market demands, the airline offers customers the opportunity to purchase tickets on an instalment plan, Voe Fácil, that was specifically designed to make travel possible for the emerging middle class.

Thanks to its pricing and novel payment arrangements, GOL estimates that at any given moment, 10% of its customers have not flown within a year or have never flown. The airline sold 94% of its tickets in 2009 via e-commerce.

All of this has been done profitably and with one of the healthiest operating margins in the industry; 7.4% in 4Q09. The company also claims one of the lowest operating costs at R$ 14.15 cents (USD 0.08) and an EBITDAR margin of 17.9%.

Independent of alliances, GOL’s partners are SkyTeam and oneworld members

Given the limited number of operators in Brazil, and the fact that GOL’s primary competitor, TAM, is now a Star Alliance member, the airline is being wooed by an interesting assortment of carriers.

Participating in GOL’s SMILES rewards programme are:
* Air France – Flying Blue
* American Airlines – AAdvantage
* Iberia – Iberia Plus
* AeroMexico – Club Premier

Consequently, the carrier has def acto arrangements with carriers in both oneworld and SkyTeam, a trend being seen more frequently amongst independent airlines. In light of its growing influence in the large Brazilian market, GOL participates in GDS, multiple codes-shares and has become a UATP issuer, acknowledging the numerous components of its market segment.

Listed on both the Brazilian and New York exchanges, the company envisions a continued strong growth pattern and has nearly 80 B737-800 aircraft on order. At its present fleet level, GOL, less than 10 years old, currently operates as many B737s as Varig did cumulatively over its entire history – an astounding fact that speaks volumes as to the recent market growth.

Azul (AD)

Brazil’s robust growth helps explain why David Neeleman, the founder of jetBlue, after leaving that carrier, established a new competitor in the Brazilian marketplace in late 2008. Its primary base of operations is Viracopos/Campinas Airport (VCP), Sao Paulo’s third and most distant (99kms from city centre) airfield. While competitors do serve the airport, Azul is the airport’s primary tenant and serves more destinations than any other.

Though the carrier enjoys a prominent position, the airport, at present, has no international service. TAP Air Portugal is to begin a thrice-weekly flight from/to Lisbon on 3-Jul-2010, but unless Azul inaugurates service to other points on the continent, the carrier will be limited almost entirely to domestic routes and connections. In order to make the airport more accessible, the carrier has regularly scheduled bus service between points in Sao Paulo and VCP.

True to the low-cost model, the airline operates only one aircraft type; the Embraer 190 series, with 15 currently in use and 23 more on order. The aircraft are configured for 106 or 118 seats and, like jetBlue, feature in-seat, live TV.

The carrier, even though just over a year old, has attracted a large following. With load factors in late 2009 regularly hitting 85%, the company’s share of the market grew, , thanks to a growing consumer base, from 3.82% in December 2009 to a 5.36% share in March 2010.

TRIP Linhas Aéreas (T4)

Finally, there is TRIP Linhas Aéreas (another acronym, Transporte Aéreo Regional do Interior Paulista), the country’s regional airline.

Founded in 1998 by the Caprioli Group, a bus and tourism company, in 2006 the Aguia Branca Group purchased 49%. In 2008, the American airline, Skywest, purchased 6%, with an option of eventually increasing that holding to 20%.

TRIP route network

Source: TRIP

With a fleet of 30 ATRs and 5 ERJ-75s, TRIP operates as Brazil’s primary regional carrier, codesharing on many routes with TAM. Many of its flights are multi-stop milk runs: flight 5603 links Manaus with Araguaina, a distance of 861 miles, but with 7 stops en route.

With a national market share in April 2010 of 2.29%, it nonetheless provides the only air service to a great many of the nation’s smaller communities, and, by its involvement with TAM, ties those places to the national and international cities served by TAM and its alliance partners.


The third and final part of this series will look at the rise and development of TAM, the heir-apparent to Varig’s intercontinental network and its replacement as the South American powerhouse for Star Alliance.

TAM too is an airline that has kept pace with a rapidly growing home market and has maintained the highest market share of any Brazilian airline.

Brazilian airline fleets: Jun-2010

Brazilian airlines' fleet in service and on order

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Old June 6th, 2010, 01:25 AM   #316
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Hay una aerolínea que se llama Sol Linhas Aéreas?

En Argentina hay una que se llama SOL Lineas Aéres

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Old June 6th, 2010, 03:12 AM   #317
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Asi es, se llama Sol Linhas Aéreas y opera las aeronaves Let de 19 pasajeros...

Sol Lineas Aéreas= Saab 340
Sol Linhas Aéreas= Let 410
Sol del Paraguay Lineas Aéreas= ERJ175 (nueva aerolinea)
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Old June 6th, 2010, 05:11 AM   #318
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Aerolíneas Argentinas requested to fly from Aeroparque to Curitiba with daily flights on B737-700 starting on September 2010
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Old June 8th, 2010, 11:10 PM   #319
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Airbus says TAM orders 5 A350s, 20 A320s

European aircraft manufacturer Airbus said Tuesday it had received an order from TAM Airlines of Brazil for 20 A320 planes and five of its new long-haul A350-900 aircraft.

At a catalog prices, the order would be worth around 2.9 billion dollars (2.43 billion euros).

Airbus said a draft accord on the purchase was signed at the Berlin Air Show, where earlier Tuesday the Dubai airline Emirates said it order 32 A380 "superjumbos" for 11.5 billion dollars, which Airbus described as the biggest contract in civil aviation history.

The head of TAM Airlines, Libano Barroso, said acquisition of the A350, which is designed to compete with Boeing's 787 Dreamliner, and the 320s would enable the airline to "operate a unified homogenous fleet throughout our domestic market."

TAM is currently Airbus's leading client in Latin America.

© 2010 AFP
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Old June 9th, 2010, 02:38 AM   #320
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what an airline

It's gonna be the ''Delta'' of South America
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