03/05/2024 – 9:38
The actions of Embraer rose 4.32%, to R$ 27 after the company announced, this Monday, the 4th, an order for up to 133 jets from American Airlines, for regional flights in U.Sin addition to opening an office in Saudi Arabia, while negotiating the sale of 33 military transport aircraft C-390 Millennium with the Saudi government.
According to a statement released by Embraer yesterday, the deal with the American airline provides for 90 firm orders for the E175, with the option to purchase another 43 jets of the same model.
If all purchase rights are exercised, the agreement will exceed US$7 billion (R$34 billion). The order announced yesterday is the largest for the E175 model ever placed by American Airlines with Embraer, according to Arjan Meijer, president and CEO of Embraer Commercial Aviation.
The aircraft, with 76 seats in American Airlines' standard two-class configuration, will be used to meet demand for regional flights in the United States. The E175 is one of the most popular models in the region, with 837 aircraft sold, including the 90 ordered yesterday, and an 88% market share in the segment since 2013.
The expectation is that regional jets with two cabin classes will dominate the American Airlines fleet when deliveries of Embraer's new E175s are completed. The company's goal is to retire all of its aircraft with a capacity of up to 50 seats, which operate in a single class, by the end of the decade.
“Over the past decade, we have invested heavily in modernizing and simplifying our fleet, which is the largest and youngest of any U.S. airline,” American Airlines CEO Robert Isom said in a statement. “This order will continue to strengthen our fleet with the newest and most efficient aircraft, so that we can continue to offer our customers the best route network, with record operational reliability.”
military plane
Also yesterday, the vice president of Embraer's Defense and Security division for the Middle East and Asia-Pacific, Caetano Spuldaro Neto, stated that the proposed sale of military aircraft to Saudi Arabia aims to maximize the company's presence in the region .
“This may include the opening of an engineering office, an aircraft finishing center, an equipment production line and Embraer training centers in Saudi Arabia,” said Spuldaro, in a lecture to businesspeople from both countries at Brazil Saudi Arabia Conference, held by Lide at the headquarters of the Federation of Saudi Chambers of Commerce, in Riyadh.
In addition to the Brazilian Air Force, Embraer has already closed the sale of C-390 units to the governments of Portugal, Hungary, the Netherlands, Austria, the Czech Republic and South Korea.
The model, aimed at transporting cargo and troops, can also be used for aerial combat or medical evacuation, rescue and humanitarian assistance missions. The model is also capable of refueling other planes and helicopters in mid-flight. According to the company, the aircraft can be reconfigured for other uses in just three hours.
According to Spuldaro, the purchase of the aircraft by Saudi Arabia could provide savings of US$2 billion, from an operational point of view, for the country's government over the next 30 years. In addition to savings on maintenance, the proposal includes meeting specificities required by the Saudi Arabian Air Force and a partnership with Saudi Arabian Military Industries (Sami).
“We want to include technology transfer so that, in the long term, we can develop equipment and explore markets together. This value proposition for the Saudi government is available for all aircraft produced by Embraer, including executive jets,” he added. “We want to transform Saudi Arabia into an Embraer hub for the region, including the Middle East and North Africa,” added Spuldaro.
In early February, during the World Defense Show 2024, Saudia Technic and Embraer Serviços & Support signed a memorandum of understanding to begin collaboration on maintenance and training activities. According to the company, the objective is to improve cooperation in both commercial aviation, with a focus on the E2 family of jets, and executive aviation.
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