Former JetBlue chief executive David Neeleman is continuing discussions with Brazilian civil aviation authorities and carriers with an eye on developing a new airline in the country.
Neeleman arrived in Brazil in early February to resume talks with authorities. According to various Brazilian sources, he intends to follow the low-cost, low-fare JetBlue formula and compete directly with Gol and TAM.
Neeleman, who founded JetBlue and was chief executive until May 2007 when he became non-executive chairman, started examining Brazil's local transport market in September last year, but was initially deterred by the country's sluggish bureaucracy. A month later he initiated talks with the chief executive of now-defunct carrier BRA, but its debt burden dashed that alternative. Fortaleza-based TAF and Vasp were also considered alternatives, but for practically the same reasons, Neeleman preferred to continue shopping. It is understood that he has initiated talks with the controllers of regional airlines Total and Trip.
Neeleman's Brazilian enterprise will be reportedly backed by $200-250 million in investments from various sources - most of them outside the country. Holding both Brazilian and US citizenships, Neeleman will not be encumbered by the 20% foreign ownership restriction laws governing local airlines.
Should Neeleman successfully conclude negotiations to acquire a local airline - thus allowing him to take the helm immediately - his reported intention is to tap outstanding JetBlue Embraer 190 orders and re-equip the acquired airline's fleet solely with that aircraft.
However, in view of the monstrous local taxes on locally produced goods acquired by Brazilian companies, Neeleman will likely be required to make alternative arrangements such as leasing the Embraer 190s from JetBlue rather than taking delivery of the aircraft straight from the manufacturer.
Source: Flight International
