Change in Brazil subsidy plan to hit Embraer sales

Sao Paulo

AZUL, the only Brazilian airline flying Embraer jets, will cancel a 30-aircraft order if lawmakers approve the latest plan to subsidise flights to small cities, airline president Antonoaldo Neves has said.

"If you want to serve regional cities, you need to have small planes," Mr Neves said on Friday as he sharpened Azul's criticism of the programme ahead of a vote this month by Congress. The measure has been altered in a way that no longer benefits Embraer's models.