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Plane Builder Embraer Advances Most in a Week as China Crash Concern Eases
Empresa Brasileira de Aeronautica SA, the world’s fourth-largest plane builder, gained the most in a week in Sao Paulo trading as concern eased that a jet crash in China last month will hurt the company’s safety record.
Embraer, as the company is known, advanced 1.4 percent to 11.40 reais at 11:35 a.m. New York time. Earlier it rose as much as 2.9 percent, the biggest increase since Sept. 1.
An E-190 jet crashed in China on Aug. 24, killing at least 42 people, according to the official Xinhua News Agency. China’s aviation regulator, responding to speculation that the pilot was inadequately trained, said cases of pilots falsifying their qualifications and flying records date back to 2008. While the regulator said the cases were resolved, Embraer may be rallying on speculation the crash resulted from training rather than construction issues, said Kelly Trentin of Spinelli Corretora.
“It diminishes the possibility the company will be hurt by a lack of confidence in the safety of its jets,” said Trentin, head analyst at the Sao Paulo-based brokerage.
An Embraer spokesman, who asked not to be named in line with company policy, declined to comment.
To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net
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