Embraer revenues estimated at $5.7 bi this year

The company has a portfolio of firm orders of $16.3 billion

Published on 11/02/2019 - 16:02 By Daniel Mello - São Paulo

Embraer is expected to deliver 85–95 business jets and 90–110 executive aircraft in 2019. The firm also expects to hand over to defense line clients ten A-29 Super Tucano planes and two multi-mission KC-390s. Revenues are likely to reach from $5.3 billion to $5.7 billion.

According to a report released today (Feb. 11), Embraer closed out 2018 with a portfolio of firm orders of $16 billion. Buyers received 90 business aircraft and 91 executive jets, 64 light, 27 large. Only in the fourth quarter last year, 33 business jets were delivered, as well as 36 executive jets—24 of which light, 12 large.

The deliveries were lower than expected for executive aviation, where from 105 to 125 planes were expected to be handed over to customers. Under business aviation, deliveries were seen to be within the estimate, from 85 to 95 jets.

Brazilian carrier Azul has an order of 51 E 195 – E2 jets. The planes, with a capacity of up to 146 seats, total 111 of the 368 orders the company is yet to deliver. Iris Aercap is the second top buyer of the model, and awaits a delivery of 44 aircraft. The first jets of the kind are expected to be brought into operation still this year.

US Republic Airlines is to receive 100 E 175 jets, with a capacity of up to 88 seats. The model accounts for 204 firm orders from the company. Another major buyer of these planes is American Airlines, which is to receive 35 units.

Merger

Last month, Embraer ratified a joint venture with US Boeing. The decision was made after permission from the government. The terms of the deal are yet to be approved by shareholders and watchdogs. This is expected to take place in 2019.

An agreement underway between the two firms includes the creation of a joint venture where Boeing is to hold 80 percent, and Embraer 20 percent. Business activities would be in Boeing’s hands, unlike national security planes and executive jets, which are to be controlled under the deal by Embraer only.

The partnership will be spearheaded by a team of executives based in Brazil, and Boeing will hold operational and management control of the resulting company. Embraer will have decision power for some strategic affairs, like transferring operations in Brazil.

Translation: Fabrício Ferreira -  Edition: Fernando Fraga / Nira Foster

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