Neeleman Seeks To Launch Brazilian Airline

JetBlue founder David Neeleman today announced plans to launch a yet-to-be-named Brazilian domestic airline early next year, subject to governmental approval.

"We respect TAM and GOL as well-run companies with deep pockets," Neeleman said in a statement today. "We believe, however, that the Brazilian market is ready for a third major airline and that there is sufficient untapped potential to support all of us."

Neeleman in a statement said he has raised $150 million in capital and has placed an order for up to 76 Embraer aircraft through 2013. That includes firm orders for 36 Embraer E-195s, "with options for another 20 and purchase rights for a further 20." The firm order represents $1.4 billion, and the rest up to $3 billion.

The Sao Paulo-based carrier plans to serve "most major markets throughout Brazil" on those aircraft. Neeleman said the Brazilian market is ripe for a lower-cost, but amenity-rich, option—not unlike JetBlue in the United States. The aircraft will hold 118 passengers in a two-by-two configuration, with such amenities as LiveTV and leather seats.

Neeleman in a statement noted that "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."