The new carrier will be based in Sao Paulo, where Neeleman was born, and is targeting a 2009 launch. It eventually will serve most major Brazilian markets, flying up to 76 195s by 2013. The agreement with Embraer includes options on 20 aircraft plus 20 purchase rights. The firm order is valued at $1.4 billion and the 118-seaters will feature LiveTV satellite IFE, a first for a Brazilian airline. Neeleman has raised $150 from unnamed investors in the US and Brazil to fund the venture. "The E-195 is the perfect airplane for the Brazilian market," he said. "Our target market is the 150 million passengers who travel annually by long-distance bus as well as those who, for lack of a convenient alternative, don't travel at all." The airline, as yet unnamed, has applied for its operating certificate. It plans to take delivery of its first aircraft this year. "It's a market that is overpriced and underserved," Neeleman spokesperson Gareth Edmonson-Jones told ATWOnline. "Fares in Brazil are about 50% more expensive than comparable flights in the US. Cost efficiencies and a focus on the bottom line will bring those fares down." The discount fares offered by the new carrier could triple or quadruple enplanements in the coming years, he added. Neeleman acknowledged the stiff competition the startup will face from Gol and TAM, which are well established. "We respect TAM and Gol as well-run companies with deep pockets," he said. "We believe, however, that the Brazilian market is ready for a third major airline and that there is sufficient untapped potential to support all of us." by Sandra Arnoult