Embraer expands service center in São Paulo driven by business jets

Consistent delivery of business jets during Covid-19 pandemic, increasing use of fleet contributed to decision


In the next three years, 150 new workers are expected to join the center’s current 150 employees — Foto: Celso Doni/Valor

In the next three years, 150 new workers are expected to join the center’s current 150 employees — Foto: Celso Doni/Valor

Embraer, the world’s third-largest commercial plane maker, doubled the useful floor area of its service center in Sorocaba, São Paulo, in order to follow the advance of business aviation in Brazil. The expansion required investments of R$10 million.

“It is a natural growth, especially because of the business jet sales growth,” said Johann Bordais, CEO of Embraer Serviços e Suporte. The consistent delivery of business jets during the Covid-19 pandemic and the increasing use of the fleet contributed to the decision of moving forward with the project, the executive said.

The center, which started operating eight years ago and is 100 kilometers far from São Paulo, now has 40,000 square meters of useful floor area and four hangars, three of which focused on maintenance, repair and overhaul of components for Embraer planes. The fourth hangar is focused on supporting fixed-base operation.

Considering the services provided in Gavião Peixoto (São Paulo) as well, the company executes around 600 maintenance procedures a year. These procedures are expected to grow 5% to 10% a year. After the expansion, the service center in Sorocaba is now able to handle future demand and receive larger aircraft, including KC-390 Millennium.

Embraer’s center in Sorocaba offers from maintenance and overhaul services to airport services through workshops authorized for different aircraft components. The facility is also able to modify jets, including the conversion of Legacy 450s into Praetor 500s.

In the next three years, 150 new workers are expected to join the center’s current 150 employees.

In the three first months of the year, the segment of support and services contributed with revenues of R$1.4 billion, almost 46% of Embraer’s net revenues – the slice was so representative partly because commercial aviation has not resumed the pre-pandemic levels yet.

Still, this division, which currently accounts for 25% of revenues on average, is expected to gain more prominence, Mr. Bordais said. “This reflects our focus on supporting our clients.” The company expects this business to grow 10% to 15% a year around the world.

*By Stella Fontes — São Paulo

Source: Valor International

Embraer to hire 1,000 people in Brazil

Carlos Alberto Griner — Foto: Silvia Costanti/Valor
Carlos Alberto Griner — Foto: Silvia Costanti/Valor

Embraer, the world’s third-largest manufacturer of commercial aircraft, is hiring 1,000 people in Brazil for different positions and levels in preparation for the projected growth cycle in the coming years.

Firm demand for executive jets, expectations of an upturn in commercial aviation, entry into new markets – including the launch of a cutting-edge turboprop and Eve Holding’s electric vertical take-off and landing vehicle (eVTOL) – and the expansion of affiliates underpin the opening of jobs across different units in the country.

“Hiring is the materialization of what Embraer had been indicating for the future,” Carlos Alberto Griner, the company’s vice president of people, ESG and communication, told Valor.

According to the executive, the move is aligned with the forecast that 2022 would be a year of recovery, with the resumption of growth in 2023. “Since the industry has a long cycle and requires qualification, we have to start looking at future needs with some anticipation,” he said.

In 2022, the company expects to deliver 60 to 70 commercial aircraft and 100 to 110 executive jets, compared to 48 and 93, respectively, last year – so the guidance already includes some growth.

Resumption of production at Embraer, creation of Eve, acceleration of EmbraerX, growth of Atech and Tempest, and other projects were considered in the package. “This brings a new demand for talent,” he added.

At the end of last year, the company boasted almost 18,000 employees worldwide, 80% of them in Brazil. By the end of 2022, there will be more than 19,000 employees.

The hiring comes two years after 900 workers were dismissed in Brazil as part of the efforts to face the crisis triggered by the Covid-19 pandemic and the losses from the cancellation of the sale of the commercial aviation business to Boeing. The entire aviation industry, from manufacturers to airlines, suffered from the effects of the pandemic that reduced the volume of travel worldwide.

About half of the new jobs were opened by Embraer in operation, and most of these positions are expected to be filled by people dismissed in September 2020.

According to Mr. Griner, the company will also take the opportunity to seek more diversity, in line with the environmental, social and governance commitments assumed. The working model is flexible now and can be in-person, remote or hybrid, depending on the requirements of the position. “The people strategy is to anticipate, qualify and take advantage of diversification,” he said.

Source: Valor International

Eve expected to be as large as Embraer in 10 years

Embraer’s Eve and Zanite agreed to merge air mobility businesses — Foto: Divulgação
Embraer’s Eve and Zanite agreed to merge air mobility businesses — Foto: Divulgação

In less than ten years, Eve Holding, Embraer’s urban air mobility company whose shares started being traded on Tuesday on the New York Stock Exchange (NYSE), may reach the Brazilian plane maker’s current size and become its main business. By current projections, the company is expected to reach revenues of $4.5 billion in 2030, against the $4.2 billion recorded by the aircraft manufacturer in 2021, and be at the head of a market estimated at $760 billion in 2040.

“Embraer has two lines of action: business efficiency and innovation. Eve is an example that this strategy is working,” CEO Francisco Gomes Neto, who attended the opening ceremony at Nyse along with the management team of Eve Holding, told Valor. The company already has non-binding orders for more than 1,800 eVTOLs (electric vertical take-off and landing vehicles), the so-called flying cars, which constitute a potential backlog of $5.4 billion.

Despite the figures, the debut on the American stock exchange was not smooth. Penalized mainly by the increase in interest rates, global inflation and investors’ flight from risky assets, the shares fell 23.5% in the first business session, to $8.66 each, in a movement that was already expected by analysts because of the recent negative performance of other stocks in the industry. In Mr. Gomes Neto’s evaluation, it is relevant the fact that the company has managed to move forward with the operation amid adverse market conditions.

The funds raised in the transaction — an IPO via merger with Zanite Acquisition, a special purpose acquisition company (SPAC) that was already listed at NYSE — were lower than expected. But, according to Mr. Gomes Neto, they are enough to finance Eve’s operation until eVTOL is authorized.

Initially, the estimate was that it would take about $500 million to reach certification of the aircraft, scheduled for 2025. Zanite’s financial partners, however, contributed less funds and Eve Holding raised $377 million. As a result, Embraer holds about 90% of the new company’s capital, compared to just over 80% in the original proposal.

“With more experience in relation to costs [of the project] and with competitive engineering, which is available in Brazil, the vision at this point is that the funds are enough,” the executive said.

According to Mr. Gomes Neto, one of Eve’s major distinctions in relation to its peers is being able to count on Embraer’s support, knowledge and global facilities. Other companies that are developing the so-called flying cars will have to build this structure, he pondered.

In addition, Embraer’s engineering team, which is recognized globally for its competencies, is participating in the development of the eVTOL. “We are confident that Eve’s design is simple and more favorable to operation than other designs,” he said.

The first 1:1 scale Eve prototype is due to take off in Brazil, at the Gavião Peixoto plant, in São Paulo state, in the next few weeks. There is still no decision on where the aircraft will be manufactured, and an international consulting firm has been hired to help define the assembly process. “We are going to make logistics and manufacturing network studies to decide where and how this process will be,” the Embraer CEO said.

In a note, Eve co-CEO Andre Stein called the IPO at Nyse a “historic milestone” in the journey started nearly five years ago by the startup incubated at EmbraerX. “This deal is a key enabler of our mission to become a leader,” he said.

Jerry DeMuro, also co-CEO, pointed out that the non-binding orders signed by major customers, including Azorra Aviation, Falkon Regional Aircraft, Republic Airways and Skywest, “provide powerful validation” of Eve’s business strategy and vision.

With the crisis triggered by the Covid-19 pandemic, which was especially hard on civil aviation, and the cancellation of the company’s commercial aviation sale to Boeing, Embraer had to reduce its operations and adjust to the new market reality. Eve’s success is one of the relevant axes for the company’s resumption of growth.

Source: Valor International

Embraer completes business combination between Eve, Zanite

Embraer’s Eve and Zanite agreed to merge air mobility businesses — Foto: Divulgação
Embraer’s Eve and Zanite agreed to merge air mobility businesses — Foto: Divulgação

Embraer unveiled that it has completed the business combination between its subsidiary of air vehicles for urban mobility — the so-called “flying cars” — Eve, and U.S.-based Zanite Acquisition. The merger gives rise to a new company, Eve Holding, now listed on the New York Stock Exchange. Embraer closed down 7.98% on the B3.

Embraer Aircraft Holding holds 238.5 million shares of Eve Holding common stock, representing approximately 90% of the existing common stock. The remaining shares are held by Zanite’s market shareholders — by the sponsor and certain third party investors that entered into subscription agreements to purchase common shares at the closing of the business combination, Embraer said.

“The business combination is in line with the company’s innovation and growth strategy, and its consummation reinforces the company’s commitment to achieving these goals,” Embraer said. The merger was unveiled in December last year.

In a note, Eve co-CEO Andre Stein said the transaction provides the startup with “growth capital and positions Eve well to execute its development plans, aided by our ongoing strategic partnership with Embraer.”

“We intend to further strengthen our position as a leading global UAM [urban air mobility] player by delivering an effective and sustainable new mode of urban transportation,” he added.

Co-CEO Jerry DeMur indicated that the closing of the deal puts Eve on course to continue developing its solutions.

Last week, Eve revealed that since December its order backlog rose to 1,825 units from 1,735 electric vertical take-off and landing vehicles (eVTOLs), made through non-binding letters of intent from 19 customers. Among the customers are fixed-wing operators, helicopter operators, sharing platforms, and leasing companies.

Source: Valor International

Airbus launches A220 model in Embraer’s turf

Airbus conversando com o regulador de aviação da China sobre a certificação  A220 - exec - Plu7

Airbus ended Tuesday, in São Paulo, the demonstration tour of the A220 model in South America, a market where the new family of aircraft – formerly part of Bombardier’s CSeries program – has not yet won customers.

The European plane maker vows to deliver lower operating cost than large narrow-body jets and offer more seats and longer-range flights than regional jets. The plan is to grab a share of a market currently dominated by Embraer’s E-Jets, especially the E195-E2, and Boeing’s 737 Max 7.

Airbus stands as the global leader in the 100 to 150-seat segment, with a 56% share, followed by Boeing (22%) and Embraer (17%). In South America, however, the new model has yet to take off. “Last year was one of recovery. Brazilian airlines suffered a lot from the pandemic. But we already have two major operators here and expect to receive new orders later on,” said Guillaume Gressin, the company’s vice-president of international, strategy and commercial operations. Azul and Latam are major clients of the European company, with dozens of other Airbus models in operation.

Latin American airlines are taking longer than peers in other regions to recover financially from the crisis triggered by Covid-19, which helps to explain why the A220 has not yet received orders from the region, the executive said.

According to Airbus’s calculations, Latin America will need 2,460 more passenger and cargo aircraft over the next 20 years to meet the additional demand and to replace older and less efficient jets. The fleet in service in the region is expected to double in this period to 2,800 units.

Of the total number of new aircraft, 2,170 will be small, 190 medium, and 100 large, Airbus projected. The growth of the middle class and the need for jets for shorter routes will drive demand, Mr. Gressin said.

Designed to serve the 100 to 150-seat market, the A220 has already drawn more than 740 orders. Today, there are more than 200 jets flying on 600 routes, operated by over 25 clients, including Air France, Delta, JetBlue and Breeze Airways – a new airline owned by David Neeleman.

Antonio da Costa, Airbus’s vice-president of single-aisle marketing, sees room for the A220 in South America. “The A220 is complementary to Embraer’s jets. Air France, for example, operates the A220 and KLM operates the E2. This brings more flexibility to the operation,” he said.

With the A220, he added, it will be possible to cover more distant routes than those operated today by the E2, allowing the expansion of the network. Compared to the Boeing Max 7, the A220’s engines, aerodynamics and systems are more modern and include more advanced technologies, he said.

The A220-300 showed in Brazil today belongs to Swiss Airlines. Before landing in São Paulo, where it was presented to representatives of local airlines, it flew through Mexico, Panama, Chile and Argentina after leaving from Miami.

Source: Valor International

Brazil’s Embraer, airlines monitor impacts on costs, operations

Embraer engata rota ascendente após rejeição pela Boeing

Although the war in Ukraine has not affected the flights of Brazilian companies so far, planemaker Embraer and airlines Latam, Gol and Azul are closely monitoring its developments, which may have a significant impact on costs and operations in the sector.

In the case of Embraer, the international community’s sanctions against Russia may disrupt access to titanium, a light metal used to make aircraft and their engines.

VSMPO-Avisma, controlled by the state-owned Rostec, has a monopoly on the production of titanium and parts forged with the metal in Russia. And it is an important supplier to the aircraft industry. Boeing and Airbus also depend in good part on Russian titanium.

An embargo on Russia, therefore, could directly impact the largest planemakers in the world.

According to Reuters, VSMPO-Avisma accounts for 25% of global titanium supply. Specifically in the aircraft market, this share rises to 50%, according to international consultants.

Sought for comment, Embraer said it evaluates the titanium supply chain on an ongoing basis, as it does with other materials. “At this moment, the supply of titanium does not concern Embraer, since the company holds a high level of stock of this material,” the company said in a note.

In a LinkedIn post last week, Latam Brasil CEO Jerome Cadier listed potential impacts of the war for airlines and stressed that the pressure on costs is “undeniable,” also citing titanium. “Unfortunately, in the situation the industry is in, these increases will impact ticket prices. It is a shame, especially at a time when what we most want is to fly again,” he wrote.

In the executive’s view, the war in Ukraine can affect the capital market and the availability of credit and the price and supply of commodities relevant to the industry, including metal.

Sought to comment on the consequences of the war, Latam said it does not fly to Ukraine and, so far, its flights have not been affected by the closure of airspace in different countries.

Gol also reported that it does not operate flights to Ukraine and reinforced recent positioning of the Brazilian Association of Airline Companies (Abear), which already warned about potential impacts of the exchange rate and oil on the costs of the airline industry.

“About this sad moment, we inform that our members do not operate flights that have as final destination the conflict region and we follow closely the impacts on the foreign exchange rate and oil prices, which can further increase costs,” the association reported.

Azul said in a note that “its operations continue as normal and without any impact.” “A possible effect on the value of tickets will depend on the impact of the war on costs such as foreign exchange rate or oil, which are constantly monitored by the company,” it added.

Source: Valor International

Embraer’s Eve starts certification in civil aviation agency

Embraer's Eve's flying car to be certified for flying in 2025  — Foto: Divulgação
Embraer’s Eve’s flying car to be certified for flying in 2025 — Foto: Divulgação

On its way to being listed on the New York Stock Exchange (NYSE), Eve, Embraer’s urban air mobility company, started the process to obtain a type certificate for its electric vertical take-off and landing vehicle (eVTOL), or “flying car”, with the National Agency of Civil Aviation (ANAC).

This certification will confirm that the new aircraft model, which will be produced on a large scale, meets the legal criteria for airworthiness. Eve expects to certify its eVTOL in 2025 and put it into commercial operation in 2026.

According to the Brazilian aircraft manufacturer, with the initiative, Eve formalized with the regulatory body the commitment “to demonstrate compliance with international technical standards and mandatory airworthiness requirements for certification”.

The eVTOL will follow the process of obtaining the type certificate in the “normal category”. “Eve, with the support of ANAC, will continue the interactions with the main foreign aeronautical authorities, soon formalizing the type certificate validation process in accordance with its global business strategy”, it informed.

In a statement, ANAC´s Airworthiness superintendent, Roberto Honorato, stated that this is a relevant step. “The process aims to achieve the best security standards, in order to allow eVTOL access to the global market,” he said, adding that there is still a lot to be done from a regulatory point of view in relation to the new technology and to the urban air mobility ecosystem.

According to Eve’s head of technology, Luiz Felipe R. Valentini, the formalization of the certification process continues the discussions already underway with ANAC.

“In addition to demonstrating Eve’s commitment to the development of the project, it allows institutions to evolve together in defining the requirements and means of compliance applicable to certification,” he explained.

Eve’s “flying car” aims to offer comfortable transport, with low noise and zero carbon emissions. Initially, it will be manned and will have capacity for four passengers. With 17 announced partnerships and 1,735 aircraft on the order backlog, valued at $5.2 billion, Eve projects revenue of $4.5 billion in 2030 and a market share of 15%.

The merger between Eve, a startup that was incubated at EmbraerX and launched as an independent company in October 2020, with Zanite Acquisition, was announced in December. The transaction values Eve at $2.4 billion and is expected to be closed in the second quarter. Zanite is already listed on Nyse.

Source: Valor International

Embraer’s Eve will have four major business areas

Conheça a Eve, a marca de 'carros voadores' da Embraer | CNN Brasil

Eve, Embraer’s urban air mobility company, will operate in four major business areas and not only in the production and marketing of its electric vertical take-off and landing vehicle (eVTOL). On its way to being listed on the New York Stock Exchange (NYSE), it will operate in support and services, operations, and air traffic control, with the development of management software for the so-called flying cars.

“All the numbers available point to a large market. This is what attracted Embraer and led it to incubate this project in EmbraerX,” said Tuesday the Eve CEO, Andre Stein, at the Credit Suisse 2022 Latin America Investment conference.

According to the executive, this is a market of more than $750 billion by 2040, considering the urban air mobility ecosystem. For Eve, the initial conservative projections suggest potential revenue of $4.5 billion by 2030, with a 15% market share.

Launched as an independent startup in October 2020, Eve is in the process of merging with U.S.-based Zanite Acquisition, in a deal that values it at $2.4 billion. The deal was announced at the end of 2021 and is expected to close in the second quarter of 2022.

According to CFO Eduardo Couto, Eve plans to be listed at Nyse as of the second quarter. “This is a relatively new operation for Brazilian companies, mixing M&A with a traditional IPO,” he said.

Eve is joining an already listed company, which has about $237 million of cash. Another $305 million in new money will come into Eve’s cash reserves from the deal, so that after the merger the company will have raised more than $500 million to develop its project. Embraer will be the controlling shareholder, initially with an 80% stake in the company.

According to Mr. Stein, the decision to launch Eve as a company independent from Embraer will maintain the agility characteristic of startups while providing access to the resources and structure of a global leader, in this case the aircraft manufacturer. “Eve will be able to seek new partnerships very freely, and even new investors, which would not be possible as a division of Embraer,” he said.

With 17 announced partnerships and 1,735 aircraft in its order backlog, valued at $5.2 billion, Eve keeps plans to certify its eVTOL in 2025 and put it into commercial operation in 2026. The gross margin of the operation is expected to be around 25% and the EBITDA margin between 15% and 20%.

Four companies that are developing flying cars are already listed on the NYSE. But Eve’s management believes that its project is differentiated, given the size of the current order portfolio, the diversity of clients and the aeronautical knowledge of the partners, especially Embraer.

According to the executives, Eve also offers greater certification capacity, in the wake of Embraer’s accumulated experience with regulatory bodies and the close relationship between the National Civil Aviation Agency (Anac) and the FAA, the U.S. authority. According to Mr. Stein, the plan is to certify eVTOL first at Anac and then seek FAA validation. “Brazil has the potential to be one of the pioneers,” he said.

For Embraer’s Vice-President of People, ESG and Communication, Carlos Alberto Griner, electric propulsion corresponds to one of the main solutions for reducing the environmental impact of aviation — particularly in regional aviation, a market in which the Brazilian company stands out globally. “These changes will start with regional aviation. And Eve will revolutionize the market,” he says.

Brazilian firms raised record amount in 2021, Embraer sells subsidiaries in Portugal, Via buys logistics startup

Investing in Brazil : 5 Sectors to follow and invest in 2022 - Europartner

Brazilian companies raised R$596bn in domestic capital market in 2021, an all-time high

The Brazilian capital market had a landmark year. Companies in the country raised R$596 billion in 2021 considering equity, bonds and hybrid instruments, up 60% year over year and the highest amount since records began, said Anbima, the association of securities firms.

The companies also raised $24.8 billion abroad, down 4.7% year over year. Considering funds raised locally and abroad, Brazilian companies got R$734 billion.

In variable income, companies issued R$128.1 billion, which was not higher than the nominal result of 2010, of R$150.3 billion. However, the figure of 11 years ago includes a one-off move by oil giant Petrobras, which raised R$120.3 billion.

In fixed income and hybrid instruments, companies raised R$467.9 billion in 2021. This is another record. The bond market alone totaled R$253.4 billion, more than double that of 2020.

Embraer sells subsidiaries in Portugal to Aernnova Aerospace for $172m

Embraer unveiled on Wednesday that it has sold two subsidiaries in Portugal, Embraer Portugal Estruturas Metálicas (EEM) and Embraer Portugal Estruturas empósitos (EEC), to Spain’s Aernnova Aerospace for $172 million. Both companies supply components used in aircraft manufacture and, after the closing of the deal, scheduled for the first quarter, they will continue to supply parts to Embraer.

The sale is neutral for the company, says Citi. The bank questions whether the company has not created unnecessary complexity. Citi has a neutral recommendation for Embraer, with a $17.50 price target for American Depositary Receipts (ADRs) traded on the New York Stock Exchange (NYSE).

Via buys logistics startup CNT

Via, owner of Casas Bahia and Ponto, announced the acquisition of 100% of the capital stock of the logistics startup CNT, which specializes in complete offers for e-commerce operations, according to a statement to the market. The value of the transaction was not disclosed.

According to Via, the transaction value consists of a fixed and a variable portion, with the fixed portion implying a multiple of about 0.20 times the gross volume of goods (GMV) in 2021. The variable part is conditioned to the achievement of performance targets and the permanence of CNT’s main executives at the head of the business.

CNT is specialized in complete offers for e-commerce operations, multi marketplace and platforms in the “plug & play” model, and have been operating for 11 years in the provision of complete logistics services (fulfillment) and for four years in services in e-commerce (full commerce).

Source: Valor international

Embraer calls for green slot in Congonhas airport

Congonhas presenteia viajantes com apresentação de jazz

Embraer will take a stance in the public consultation opened by the National Agency of Civil Aviation (ANAC) to establish new rules for the distribution of operating authorizations (slots) in congested airports. The world’s leading regional jet planemaker will defend that sustainability criteria, such as reduction of carbon emissions and aircraft noise, are taken into account in the process. Today, the only terminal that would fit the congested airport criterion to be modeled (called level 4) is the Congonhas terminal, in São Paulo.

The company also believes that this revision of the rules must include mechanisms that encourage the opening of new regional routes, reversing the trajectory of concentration of destinations seen in the last two decades. Across the country, according to Embraer, regional aviation served 130 cities in the early 2000s. Today, there are just over 100 locations — in Congonhas, the number of routes was reduced to 36 from 38.

“They could be green, sustainable slots that encourage regional aviation,” said Rodrigo Silva e Souza, head of market intelligence for commercial aviation at Embraer. The current rules, based on competition, aircraft size and operation, encourage the use of larger planes, with a reflection on the concentration of routes to the most popular destinations.

According to Mr. Souza, the current rules are also outdated in relation to what is seen in other key airports – London City Airport, for instance, has imposed strict restrictions on noise emissions. In Congonhas, 41 slots that belonged to bankrupt Avianca will be redistributed, in addition to additional authorizations foreseen with the privatization of the terminal.

Discussions about the new coordination rule is expected to be intense. Under the terms proposed by Embraer, it would tend to favor a certain type of aircraft — the Brazilian company’s E-Jets E2 or Boeing’s 737 Max, for example — and airlines that operate these models, such as Azul Linhas Aéreas. Embraer’s E-Jets E2 are considered the most efficient and sustainable narrow-body commercial jets in the world, and Azul was the first company to receive the E195-E2 in 2019.

Thiago Nykiel, CEO and founding partner of the consultancy specialized in civil aviation Infraway Engenharia, said that it is inherent to the industry to seek increasingly higher levels of efficiency, resulting in more sustainable operations. Therefore, there would be no need for a specific rule. “A regulatory measure of this nature [which associates efficiency and slot distribution] can impose additional costs on the industry and even create barriers to entry for new players,” he says.

For Mr. Nykiel, the objective criterion to be considered in slot coordination is system efficiency. “This does not prevent us from having a sustainable agenda. But, first, it is necessary to coordinate with the entire industry,” he said.

The discussion tends to add spice to the already fierce competition for space in Congonhas. The consultation runs until mid-December. Today, Latam has a historic right to operate in the winter season (which began in October) with 236.2 slots, or 43.99%. The company is followed by Gol, with 234.2 slots, or 43.61%. Azul has 43 slots, and Itapemirim, two.

However, due to the pandemic, Gol and Latam temporarily conceded some of their slots, which ended with Itapemirim and Total, two newcomers to the terminal. Itapemirim won Anac’s endorsement for ten daily slots as of November 3, increasing to 14 slots in December. Total will have 12 starting on January 29.

Among the points of the proposal under debate is a rule for the distribution of slots with a maximum market share limit of 40% per company. According to the rule to be studied, Gol and Latam would be left out of new divisions for having already surpassed the level, but they would not lose what is above the limit.

What is closely monitored, however, is the expansion of the terminal’s capacity – with more slots, the amount in these companies’ hands would be diluted and, thus, they could receive more.

In today’s scenario, however, Azul, Itapemirim and Total should benefit more in the distribution of Avianca slots, as they are new entrants. The preliminary division, in 2019, gave 12 slots to MAP, 14 to Passaredo (the two are Voepass) and 15 to Azul. TwoFlex, bought by Azul in 2020, also won 14 slots in the secondary runway at the time.

The competition is such that it led Gol to make an offer to buy MAP and, with that, take all the slots that are currently in Voepass’s hand (24). There is a lot of challenge ahead, however. The first is that Voepass lost four slots in the so-called winter season for not complying with the rules for using slots in 2019.

According to sources familiar with the deal, Gol theoretically has not bought MAP yet. The announcement was made, but through a conditioning operation, that is, the number of slots agreed upon must exist for the deal to take place. How many slots will actually fall under Voepass’s power is still unclear, as there are at least two entrants (Itapemirim and Total) that were not in the scene when the first deal was made.

In a note, ANAC said it expects to publish rules for new slots in the first half of 2022.

Source: Valor international