Paris Air Show

Embraer says airline deal could could net $1.26B

 - June 25, 2007, 6:15 AM

Embraer yesterday said it has signed a “preliminary commercial agreement” with a Brazilian airline for dozens of airliners in a deal potentially worth $1.46 billion. The regional jet manufacturer also said it converted $285 million worth of previously disclosed airliner options into firm commitments.  

Brazil’s BRA Transportes Aereos plans to buy 20 Embraer 195s worth $730 million and has signed for options on another 20. The BRA jets will be configured with 118 seats in identical single-class layouts, Embraer said, adding that the first E-195s will join the airline’s fleet in next year’s second quarter.

Italy’s Alpi Eagles airline, meanwhile, converted five options for the same model, Embraer announced. The deal is valued at $182.5 million at current list prices. The operator last March placed a firm order for five E-195s. Deliveries are scheduled to begin next April, Embraer said.

The manufacturer added that customer GE Commercial Aviation Services has converted three of its options for E-190s into firm orders. It placed the value of that deal at $103.5 million.

Part of Embraer’s so-called E-Jets family, the E-190 and E-195 are single-aisle, twin-engine jetliners sharing the same fuselage cross-section and systems.