Jetrader - Autumn 2016 - 42

Transferring aircraft to TAP Portugal was a great blessing because it is a sister company, so we were able to do a quick deal with them. They also needed to refleet themselves relatively quickly and so we were able to help. We also returned aircraft and worked with manufacturers to shift around some of our positions. We have great relationships with our manufacturing partners, who have been very helpful in this process. We've adjusted our capacity for the new norm that we're living in. When I take about 25 aircraft out of the fleet in a short period of time, we're not seeing a huge cut in capacity because I'm fully utilizing the assets I have. JT: What effects in the credit market has Azul felt because of the economic and political upheaval in Brazil? JR: Brazilian banks stopped lending over the last 12 months, but the fact that we were able to raise equity and show them that our balance sheet is much stronger than our competition has been a big help, and they've opened up and are starting JT: There's been a lot of growth of lowcost carriers in Latin America. What do you think is driving this growth? JR: One of the reasons why LCCs are thriving in Latin America today is a lot of people want to travel. If you purchase a ticket seven or 30 days out, the fare is essentially the same. LCCs have been a great success in Mexico and other places, and I think that's fantastic. They're creating new demand. A lot of these guys are not necessarily stealing demand from the legacy guys; they are creating a new pocket of demand that didn't exist before. Anytime you do that - and that's what we've done here in Brazil - you have a very sustainable business model. Azul created a hub at [Sao Paulo's] Viracopos/Campinas International Airport. Prior to Azul's arrival, I think there were 14 flights a day. Now there are 200 flights a day and we have 195 of them. So a lot of people think that Azul is stealing customers from the other airlines, but we've created our own market. We're doing something different in the space, so we've created a lot of value with our business model. Offering cost effective, end of life strategies for airlines and lessors. Asset Acquisition: Resources and experience to maximize your cash flow through direct acquisition or lease assumption. Engines & Aircraft: đ CFM56-3/-5/-7 đ IAE - V2500A5 đ Boeing 737 Classic/737 NG đ Airbus A320 Family JT: When do you think stability is going to return to Brazil and the Latin American region? JR: Interim President [Michel Temer] doesn't have the same power that the permanent president does. Plus we need to see if there's any chance of [President Dilma Vana Rousseff] coming back before there can be some stability. There are some difficult measures that Brazil needs to address, including the labor laws and things like that. The interim president probably has the best economic team, but it's been a challenge politically to get things done. Contact Ken De Jaeger at ken@contrail.com or Joe Kuhn at joe@contrail.com to discuss options for your CFM56/V2500 engines and/or 737 & A320 aircraft. Building lasting relationships with asset owners one aircraft, one engine at a time ąăĆŏ *2!/0)!*0ŏ+1.0Čŏ!.+*Čŏ ŏĆăĆĊăŏđŏćĀĉċĉąĉċĉāĀĀŏđŏwww.contrail.com 42 The official publication of the International Society of Transport Aircraft Trading 08/08/16 826611_Contrail.indd 1 to lend to us again. In Brazil, you rely on working capital loans from the banks. The way tickets are sold in Brazil, customers can buy them in six installments. So they may fly tomorrow, but the cash flow happens over a six-month period. So it's important for Brazilian carriers to manage working capital, because I certainly can't pay my fuel bill in six installments and I can't pay for my other resources in six installments. It hasn't been easy or fun. But I can guarantee you that nobody moved as quickly as we have in raising capital and shedding capacity. I think that brings us a lot of credibility back with the banks. 1:34 pm http://www.contrail.com http://www.contrail.com

Table of Contents for the Digital Edition of Jetrader - Autumn 2016

A Message from the President
Calendar/News
Q&A: Mike Williams, Jetaire Group
Wish Upon a Star
Sunshine, Rain and Mixed Feelings
ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Survival of the Fittest
Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
5 Places to Visit While Attending the ISTAT Latin America Forum
From the ISTAT Photo Archives
From the Jetrader Editorial Archives
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser Index
Advertiser.com
Jetrader - Autumn 2016 - cover1
Jetrader - Autumn 2016 - cover2
Jetrader - Autumn 2016 - 3
Jetrader - Autumn 2016 - 4
Jetrader - Autumn 2016 - 5
Jetrader - Autumn 2016 - 6
Jetrader - Autumn 2016 - A Message from the President
Jetrader - Autumn 2016 - 8
Jetrader - Autumn 2016 - 9
Jetrader - Autumn 2016 - Calendar/News
Jetrader - Autumn 2016 - 11
Jetrader - Autumn 2016 - Q&A: Mike Williams, Jetaire Group
Jetrader - Autumn 2016 - 13
Jetrader - Autumn 2016 - 14
Jetrader - Autumn 2016 - 15
Jetrader - Autumn 2016 - Wish Upon a Star
Jetrader - Autumn 2016 - 17
Jetrader - Autumn 2016 - Sunshine, Rain and Mixed Feelings
Jetrader - Autumn 2016 - 19
Jetrader - Autumn 2016 - 20
Jetrader - Autumn 2016 - 21
Jetrader - Autumn 2016 - 22
Jetrader - Autumn 2016 - 23
Jetrader - Autumn 2016 - ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Jetrader - Autumn 2016 - 25
Jetrader - Autumn 2016 - 26
Jetrader - Autumn 2016 - 27
Jetrader - Autumn 2016 - 28
Jetrader - Autumn 2016 - 29
Jetrader - Autumn 2016 - 30
Jetrader - Autumn 2016 - 31
Jetrader - Autumn 2016 - Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Jetrader - Autumn 2016 - 33
Jetrader - Autumn 2016 - 34
Jetrader - Autumn 2016 - 35
Jetrader - Autumn 2016 - 36
Jetrader - Autumn 2016 - 37
Jetrader - Autumn 2016 - Survival of the Fittest
Jetrader - Autumn 2016 - 39
Jetrader - Autumn 2016 - 40
Jetrader - Autumn 2016 - 41
Jetrader - Autumn 2016 - 42
Jetrader - Autumn 2016 - 43
Jetrader - Autumn 2016 - Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
Jetrader - Autumn 2016 - 45
Jetrader - Autumn 2016 - 5 Places to Visit While Attending the ISTAT Latin America Forum
Jetrader - Autumn 2016 - 47
Jetrader - Autumn 2016 - 48
Jetrader - Autumn 2016 - 49
Jetrader - Autumn 2016 - From the ISTAT Photo Archives
Jetrader - Autumn 2016 - 51
Jetrader - Autumn 2016 - 52
Jetrader - Autumn 2016 - 53
Jetrader - Autumn 2016 - From the Jetrader Editorial Archives
Jetrader - Autumn 2016 - 55
Jetrader - Autumn 2016 - 56
Jetrader - Autumn 2016 - 57
Jetrader - Autumn 2016 - Aviation History
Jetrader - Autumn 2016 - 59
Jetrader - Autumn 2016 - 60
Jetrader - Autumn 2016 - 61
Jetrader - Autumn 2016 - 62
Jetrader - Autumn 2016 - Aircraft Appraisals
Jetrader - Autumn 2016 - 64
Jetrader - Autumn 2016 - 65
Jetrader - Autumn 2016 - ISTAT Foundation
Jetrader - Autumn 2016 - 67
Jetrader - Autumn 2016 - 68
Jetrader - Autumn 2016 - Advertiser Index
Jetrader - Autumn 2016 - Advertiser.com
Jetrader - Autumn 2016 - cover3
Jetrader - Autumn 2016 - cover4
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