The number of orders placed with Brazilian aircraft manufacturer Embraer aircraft during the Dubai Air Show, a trade fair in the aviation sector held in the United Arab Emirates, has increased to 63.
Today, November 13, the company announced the signing of contracts involving 24 aircraft, in addition to the 39 orders that were disclosed yesterday. Thus, the value of deals closed by the company at the fair has reached US$ 665.5 million.
Company Invision Projects, from India, placed orders for 20 executive jets of the Phenom 100 and Phenom 300 models, totaling US$ 69.4 million. The company operates in the wireless telephony sector, but is planning to launch a charter operator, Invision Air, in February 2008.
Dana Airlines, a Nigerian airline that should begin operating in the first quarter of 2008, should purchase two Phenom 100 and one Phenom 300, totaling US$ 12.55 million. Today also saw the announcement of the sale of a Legacy 600 executive jet to Platinum Corporation, a Dubai-based company that operates in the trade sector.
Embraer has also disclosed the name of the customer that is going to receive the first large-sized Lineage 1000 executive jet. The aircraft should be delivered in the second half of next year to businessman Aamer Abdul Jalil Al Fahim, executive director at the Alfahim Group, from Abu Dhabi, which operates in various fields, such as auto trade, industry, hotels, and tourism.
During the fair, also announced was the purchase of an Airbus A 380, the world's largest passenger aircraft, by Saudi prince Al-Waleed Bin Talal, who is going to use the aircraft for private purposes.
Yesterday, Embraer announced the order of five Embraer 190 jets by NAS Air, from Saudi Arabia, for the value of US$ 172.5 million. The Saudi company also signed leasing contracts with a GE Commercial Aviation Services (Gecas) for the use of another three Embraer 190 and two Embraer 195. The former will be configured for 114 seats and the latter for 118.
According to Embraer, NAS was established in February this year as the first low-cost airline of Saudi Arabia and is already the second largest airline in the Arab country. With the new aircraft, the company plans to expand from 70 to 358 the number of local and regional flights it operates per week. The first aircraft, leased from GE, should be delivered in February next year.
The contract also forecasts the acquisition of another 17 aircraft, which may increase the value of the agreement to US$ 759 million, in case all purchase options are converted into firm orders.
Embraer also announced a US$ 265.57 million contract with Al Jaber Aviation, from Abu Dhabi, which forecasts the sale of seven executive jets, being five Lineage 1000, a large aircraft built on the Embraer 190 platform, and two Legacy 600 airplanes, of medium to large size.
The aircraft, according to the Brazilian company, should be used in high-end charter services. The first Legacy should be delivered in February 2009 and the Lineage starting in May 2010. Al Jaber also placed options for another two Lineage and one Legacy, which if converted into firm orders should expand the value of the agreement to US$ 376.88 million.
On Sunday, the first day of the fair, Embraer announced the sale of eight executive jets to charter company Falcon Aviation Services, also from Abu Dhabi. The airplanes sold are three Legacy, one Lineage and four Phenom 300, small aircraft. The value of the deal is US$ 145.78 million. The first Legacy should be delivered in the second quarter of 2008, the Lineage in the second quarter of 2009 and the Phenoms in the second quarter of 2011.
But not only Arab companies closed contracts with Embraer. Virgin Nigeria, which belongs to Nigerian investors and to Virgin Atlantic, ordered eight Embraer 170 and two 190 commercial jets, for a total value of US$ 301 million. The first delivery is scheduled for September next year.
Virgin Nigeria may purchase another 14 aircraft, which, if confirmed, should increase the total contract to US$ 800 million, according to Embraer.
Globalia Group, from Spain, in turn, ordered 11 executive jets, being eight Phenom 100, two Phenom 300 and one Legacy. The orders total US$ 62.31 million. The aircraft will be used in charter flights operated by Pepe Jets, a Globalia subsidiary. The first delivery, the Legacy, should take place in April 2008.
On Friday, November 9, Embraer disclosed its results for the third quarter.Â In the period, the company posted revenues of 2.7 billion Brazilian reais, an increase of 45.2% compared with the same period of last year and of 24.6% compared with the second quarter of 2007. The company's net profit reached 306 million reais, 87% more than in the third quarter of 2006 and 284% more than in the second quarter of this year. In dollar values, revenues totaled US$ 1.43 billion and profit stood at US$ 195 million. The company delivered 47 jets in the period.
Airbus and Boeing
Still at Dubai Air Show, Dubai Aerospace Enterprise (DAE), which operates in several areas of the aeronautics sector, announced the signing of letters of intention with the European Airbus and the North American Boeing. The first forecasts the purchase of 100 aircraft for the value of US$ 13.5 billion, being 70 of the A-320 model and 30 of the A-350 model. The Airbus deliveries should take place between 2013 and 2022.
With Boeing, the agreement also establishes the purchase of 100 aircraft, being 70 Boeing 737 Next Generation airplanes and 30 large airplanes, like the 787, 777 and 747. The value of the deal is US$ 13.7 billion and deliveries should take place between 2010 and 2018.
The DAE objective is to lease the aircraft to airlines. Company president Ahmed bin Saeed Al-Maktoum, who is also the president at Emirates Airline, said, according to a spokesperson, that the DAE strategy forecasts becoming one of the leading companies in aircraft leasing in the near future.