Embraer’s Delta Order Loss Signals New Margins Pressure
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Embraer SA’s surprise loss of a $1.85 billion regional-jet order from Delta Air Lines Inc. signals the planemaker needs to sweeten incentives such as buyback guarantees and maintenance deals to fend off Bombardier Inc.
AMR Corp.’s American Airlines and United Continental Holdings Inc. revived the prospect of U.S. sales for Embraer by winning new labor contracts last month that would allow their commuter carriers to fly larger planes, according to Philadelphia-based Drexel & Hamilton LLC.