JACKSON FLORES / RIO DE JANEIRO
After suffering serious financial problems, the Brazilian airline has emerged leaner and is looking to renew its fleet
VASP is discussing a deal for up to 30 Embraer 170 regional jets as the Brazilian airline negotiates the lease of 12 Boeing 737-300s from Continental Airlines.
After suffering serious financial difficulties for two years that nearly pushed it into bankruptcy, the Brazilian carrier is now a much leaner operation and is looking to expand and renew its fleet.
VASP, which operates 22 ageing 737-200s and three younger -300s, confirms that it is negotiating for up to 30 170s. The 70-seaters would allow the carrier to replace older 737-200s and significantly improve performance on shorter routes. Meanwhile, VASP is talking to Continental about the short-term lease of 12 737-300s for a year to allow it to increase capacity.
The airline currently serves 31 destinations, operating 208weekly flights, with a substantial number of these between state capitals and major cities in northern Brazil, where the Embraer 170 would offer better performance.
A deal with VASP would be a massive boost for Embraer, which has been struggling to secure additional sales for its new family of 70-100 seaters following the US terrorist attacks. Fellow Brazilian airline TAM signed a commitment for 25 plus 75 options of the larger Embraer 195s last June, but has delayed confirming the deal.
Although burdened by a $848 million debt - mostly related to unpaid government taxes - VASP is close to finalising an agreement with its largest private creditor, the Banespa/Santander Bank.
Midwest Express subsidiary Skyway Airlines is postponing delivery of 20 Embraer ERJ-140s by 12 months until mid-2004. The airline claims that the move is intended to allow it to begin absorbing 20 new Boeing 717s from early next year. In the interim, Skyway is taking four additional Fairchild Dornier 328JETS this year, increasing to 12 its fleet of 32-seat jets.Source: Flight International
