unaligned

A deal between Brazilian airline Azul and its lessors to swap more than $500m in obligations for an equity stake is good news for planemaker Embraer, analysts say, as it reduces concerns about the debt load of a key customer. Azul had 21 next-generation E2 jets in its fleet at the end of the first half and is awaiting delivery of more this year. "A stronger Azul means a stronger Embraer," the carrier's CE, John Rodgerson, told Reuters on Tuesday after the deal with lessors was announced. Azul agreed to give them up to 100m shares of the firm to eliminate obligations of around 3b reais ($541.16m). The carrier, which competes with LATAM and Gol in Brazil's domestic market, has centered its fleet growth plans on Embraer jets. In August, the firm said it expected to receive 15 to 18 new aircraft by the end of 2025. Azul has firm orders for 51 E195-E2 jets, according to Embraer.<br/>

Russian carrier S7 Airlines is reconfiguring several Airbus A320s to introduce a business-class cabin, taking advantage of rising demand for premium service. S7 is to refit 16 A320s which had previously featured an all-economy layout. It says the aircraft will be updated to have eight business seats as 156 in the economy cabin. S7 states that it has a large number of corporate clients and that it flew 10% more business travellers in the first half of this year than last. “We see a growing demand for a high level of service,” says CE Vadim Klebanov. “It is also important for us to provide each individual passenger with the opportunity to choose.” The seats will be similar to those on S7 aircraft already fitted with a business cabin, including a 35in (89cm) pitch. S7 says the aircraft reconfiguration follows other recent efforts to expand its appeal to the corporate sector, including introducing an improved business loyalty programme earlier this year.<br/>