Breeze Aviation has announced it has entered into an agreement to lease 15 Embraer E190s from Nordic Aviation Capital (NAC) for a planned scheduled service launch in the US in May 2021, the company said.
Originally planning to lease E195s from Brazilian airline Azul and start flying by the end of this year, Breeze opted to take advantage of falling lease rates due to the Covid-19 pandemic by signing a new term sheet with NAC.
Breeze expects to finalize lease documentation with NAC on July 31 this year, ahead of first delivery in August. The company expects to take the remaining 14 airplanes over the course of the next eight months.
Breeze and Airbus have agreed to defer delivery of the first of 60 A220-300 narrowbodies by six months until August 2021. Plans call for Airbus to deliver the second in September and then another one per month starting in January 2022. Breeze plans to start operating charter flights this November out of Minneapolis-St. Paul International Airport.
The airline expects its initial scheduled operations to connect the Atlantic Coast, the southern US, Texas, and the Midwest. Plans call for Breeze to begin flying an A220 from the Atlantic Coast to California in October 2021.
Breeze, a low-cost airline, estimates its capital requirements under the DOT´s financial fitness test will total USD 61.6 million, representing three months of regular operations at an estimated cost of USD 21.3 million and pre-operating costs of USD 40.3 million.