Brazil: Embraer signs contract to export jets to American Airlines
Brazil's National Bank for Economic and Social Development (BNDES) announced the conclusion of a financing contract for the export of 32 Embraer E175 commercial jets to American Airlines. The operation, valued at $810 million, was unveiled in São José dos Campos, São Paulo state. It will be facilitated through a direct credit line aimed at promoting the export of national goods.
During the announcement on Friday (Jul. 19), President Luiz Inácio Lula da Silva emphasized Embraer's significance to Brazil. "Since my days as a union president in the 1980s, Embraer has been a source of national pride. It's not often that BNDES has the courage to lend $810 million to finance [the purchase of] airplanes. This is a political decision made by the government. We will continue to finance Brazilian exports because this also supports jobs, salaries, and the accumulation of technological knowledge and intelligence," said Lula.
Embraer's CEO, Francisco Gomes Neto, stated that the financing "boosts Brazil's neo-industrialization process, enhancing the country's innovation and competitiveness. BNDES, with its strategic vision, has been fundamental to the development of the national industry by providing export financing, access to working capital resources, and investment in research and development."
Earlier this year, American Airlines announced an order for 90 E175 jets, with the option to purchase an additional 43 jets of the same model. The aircraft will feature 76 seats. If all purchase options are exercised, the deal could exceed $7 billion. These orders were included in Embraer's order book for the first quarter.
Embraer, a global aerospace company headquartered in Brazil, operates in the commercial aviation, executive aviation, defense and security, and agricultural aviation segments. The company designs, develops, manufactures, and sells aircraft and systems, while also providing after-sales services and support to customers. Embraer maintains industrial units, offices, and service and parts distribution centers across the Americas, Africa, Asia, and Europe.
BNDES
Since 1997, BNDES—Embraer's largest partner—has supported the export of over 1,300 aircraft. "This financing has totaled more than $25 billion over the years. Under President Lula's administration, maintaining this support ensures that the Brazilian company remains one of the world's top three aircraft manufacturers, generating skilled jobs and income in Brazil," said BNDES head Aloizio Mercadante.
