New contracts of Embraer may get to US$ 5.7 billion
Folha de S. Paulo 07/21/10
After seeing its order backlog shrink month after month for nearly two years, Embraer is growing again. The company closed firm contracts of US$ 1.38 billion in the last two days of the Farnborough International Airshow (United Kingdom). Other contracts - that represent intentions, not firm orders - were announced at the show. Should they be exercised they may increase the orders to US$ 5.7 billion. "We're seeing the beginning of a recovery in the demand", said the President of Embraer, Frederico Curado.Over the past two years, besides hardly selling planes, the company suffered cancellations and postponements of delivery orders. The main contract announced by Embraer in Farnborough was entered into with Flybe. The British low-cost company acquired 35 175 jets per US$ 1.3 billion. The contract also foresees another 65 purchase options and 40 acquisition rights that, if exercised, shall cause the contract to go up to US$ 5 billion.
Embraer also announced yesterday the signing of a letter of intent for the sale of 15 190 jets for the company of leasing and financing of aircraft Air Lease Finance Corporation for US$ 600 million. The contracts add to those announced the day before yesterday: five jets for Azul and two for Trip, contracts of US$ 211 million and US$ 80 million, respectively.