Brazil's Embraer Poised to Deliver Over 200 Jets in 2008

Brazilian aircraft maker Embraer Brazilian aircraft manufacturer Embraer, in 2008. has delivered 145 jets up to the end of September. Figures released by the company show that the airplane maker has turned in 45 planes on the first quarter, 52 on the second and another 48 on the third. 

The numbers show a 34% increase over the same period in 2007 (when the company delivered 108 jets). Embraer believes that it will be able to  deliver 195 to 200 aircraft in 2008, plus ten to 15 Phenom 100s.

In the third quarter, Embraer delivered 37 jets to the commercial aviation market, nine executive jets, and two aircraft to the defense segment and government segment.

The company's firm order backlog came to US$ 21.6 billion in the third quarter of 2008, an increase of 4.3% over the previous quarter. Also on third quarter, Embraer announced 13 new commercial aircraft sales, including twelve EMBRAER 190s (five to China's Kun Peng, five to Austria's NIKI, and two to LAN, of  Mozambique), and one EMBRAER 195 to Montenegro Airlines.

Moreover, Embraer unveiled 17 EMBRAER 190 sales that were included in the backlog as "undisclosed customer": 12 for AeroMexico and another five to NAS Aviation. The list of new operators was joined by China's Kun Peng, TACA Airlines from El Salvador, Petroecuador, and Virgin Nigeria. Furthermore, in line with contract clauses, US Airways did not confirm five firm orders, which then became purchase options.

Three ERJ 145 aircraft were not delivered to Grand China Express, a company of the HNA Group from China, due to a reduction in the growth of its fleet, and new delivery dates and quantities are now being negotiated. The flow of deliveries for EMBRAER 190 aircraft to the same customer continues unaltered.

New executive jet orders in the period included two Legacy 600s to K2 SmartJets, one Lineage 1000 to Royal Jet (representing the Al Habtoor Group, from the United Arab Emirates), and three Phenom 300s to Ireland's JetBird. The number of firm orders for the Phenom family surpassed 800 aircraft, and the Phenom 100 continues on schedule with its program for being certified in the fourth quarter of 2008.

In the Defense and Government segment, Embraer announced contracts for three EMB 145 AEW&C (Airborne Early Warning and Control) jets for the Indian Government, and 12 Super Tucano aircraft to the Chilean Air Force.

The company's progress in implementing lean manufacturing processes throughout all of its divisions continues to contribute towards establishing a more constant production cadence and meeting delivery commitments, making it possible to keep aircraft coming off the line and to achieve more solid financial planning and a more stable cash flow.

Mozambique Orders Two

Embraer and LAM - Linhas Aereas de Moçambique signed a contract for two EMBRAER 190 aircraft, plus two purchase rights for the same model. The total value of the deal is US$ 75 million, at list price, and could double, if all purchase rights are exercised.

"We welcome LAM, the newest Embraer operator on the African continent, who raises our E-Jets customer base to the outstanding mark of 50 airlines," said Mauro Kern, Embraer Executive Vice President for Airline Market.

"It is a privilege to have our E-Jets chosen as a tool for modernizing LAM's fleet. The company will expand its presence in the domestic segment and in the southern region of Africa, and will be able to offer its customers advanced, reliable, and highly comfortable service."

LAM's EMBRAER 190 will be configured with a dual class layout, featuring nine seats in First Class and 84 in Economy. The first delivery is scheduled for the second half of 2009, and the aircraft will be based in the nation's capital, Maputo.

"When we decided to modernize our fleet of short and medium-haul aircraft, as well as to reduce operating costs, the focus was on adapting our capacity to market demands," said José Ricardo Viegas, Chairman of LAM's Board of Directors.

"Our objective was to replace the larger aircraft in our fleet with newer and smaller ones, thus enabling us to increase frequencies, open new routes, and better serve our customers. The EMBRAER 190 is precisely the model we needed."

The E-Jets will replace older narrow-body jets operated by LAM for domestic routes, as well as for regional flights, mainly to Angola, Kenya, and South Africa.

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