Embraer SA (ERJ), the world’s biggest regional jetmaker, snagged $7.11 billion in expected E-Jet orders this week during the Farnborough Air Show and a visit of the Chinese president to Brazil, outpacing Bombardier Inc. (BBD/B)
Embraer sold 110 of the second-generation E-Jets, which begin production in 2018, and 25 of the current aircraft that will help bridge the gap until the new family of planes starts being delivered.
Embraer chose to overhaul the E-Jets instead of developing an all-new plane, as Montreal-based Bombardier is doing with its CSeries. The Sao Jose dos Campos, Brazil-based company instead invested in customer support and maintenance centers around the world, attracting customers from China, the U.S. and eastern Europe, said Paulo Cesar Silva, chief executive officer of Embraer Commercial Aviation.
“Today we are seen by the market as the jetmaker that brings the best solution to clients in the segment,” he said in a telephone interview from the Farnborough air show near London on July 15.
Embraer sold 50 E175-E2 jets for $2.4 billion to Trans States Holdings, Inc. and 30 E195-E2 jets for $1.87 billion to Azul Linhas Aereas Brasileiras SA at the air show. The jetmaker also sold three E175s and two E190s there.
Today, the Brazilian government announced Embraer signed contracts with Tianjin Airlines Co. Ltd. for 20 E190 and 20 E190-E2 planes, and with ICBC Financial Leasing Co., Ltd. (601398) for 10 E190-E2 planes. The total value of the Chinese deals is $2.61 billion.
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