BRAZIL Trends and Developments Contributed by: Marcelo Mello and Bruna Toniolo, Nantes Mello Advogados
new application programming interfaces (APIs) that enable seamless communication between registries, operators, and lessors (ANAC, Portaria 14.167). This simplification enhances transaction speed and legal certainty. MoU with EASA and focus on SAF In February 2025, ANAC signed a Memorandum of Understanding with the European Union Aviation Safety Agency (EASA), aimed at enhancing regula - tory co-operation and safety alignment. A key pillar of the agreement includes co-ordination on Sustainable Aviation Fuel (SAF) regulation, certification processes for green aircraft, and harmonised safety assessments – steps that directly impact financing strategies for ESG-compliant assets. Aircraft Financing Structures: Shifting Preferences and Regional Growth Robust demand for sale-and-leasebacks and leases Brazil’s aircraft financing has evolved significantly since mid-2024, driven by a strong rebound in domes - tic air travel and heightened balance sheet optimisa - tion among carriers. Sale-and-leaseback transactions remain the structural backbone of new deliveries. Financing for aircraft deliveries in Latin America is being primarily met by lessors, especially through sale-and-leasebacks – underscoring their central role in fleet modernisation. Nationally, carriers have leveraged sale-and-lease - back deals coupled with structured operating and leveraged lease arrangements to preserve capital and improve liquidity. This approach aligns with global trends yet caters specifically to Brazil’s USD-denom - inated finance environment and multi-layered capital structures. Regulatory framework: wet, dry, finance leases under ANAC Brazil’s regulatory regime, governed by its Aeronauti - cal Code and ANAC oversight, permits all major lease types – wet, dry, and finance leases. ANAC’s digital modernisation now enables faster clearance of “wet lease” arrangements involving crews and mainte - nance, expanding financing flexibility for operators in need of short-term fleet solutions. Certain Aircraft,
Crew, Maintenance, Insurance (ACMI) transactions closed in Brazil recently underline this trend, offering insurers and financiers alternative recovery strategies where repossessed aircraft can be deployed through third-party partners – enhancing asset utilisation in distressed scenarios. Regional fleet strategy and emerging players to watch Embraer E2 and ATR fleet expansion backed by BNDES Regional aircraft modernisation has accelerated thanks to strong Embraer E2 and ATR order momen - tum, supported by government-backed financing. In January 2025, Azorra secured a USD190 million BNDES facility to finance up to eight Embraer E2 jets – bringing the total BNDES financing to USD640 million for 23 E2s across airlines including Azul and Scoot, affirming state-backed financing as a key mechanism for fleet renewal. Gol has similarly engaged in financing agreements that blend BNDES support with ECA coverage, rein - forcing the track record for structured approaches that support regional fleet acquisition. Rising regional operators and leasing activities Regional operators are increasingly active participants in both asset operation and leasing. Azul Conecta, formerly TwoFlex, now flies to approximately 60 des - tinations as of April 2025, using its regional aircraft fleet to feed Azul’s broader network. As domestic infrastructure investments and connectivity goals advance, demand for regional leasing – both operat - ing and finance leases – continues to grow. Sideral, a Brazilian cargo and charter operator, has similarly expanded, leveraging leasing structures to grow its fleet under tax-efficient platforms. The trend reflects broader diversification, where regional carriers seek flexible financing to respond to market demands and logistical opportunities in underserved routes. New entrants: CDB-financed Chinese jets Brazil’s leasing landscape is witnessing diversification as new entrants hedge growth with non-traditional aircraft. Total Linhas Aéreas is reportedly exploring financing options for Chinese-built jets through bank
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