Embraer (NYSE: ERJ) delivered a total of 14 jets in the first quarter of 2020, of which five were commercial aircraft and nine were executive jets (five light and four large). As of March 31st, the firm order backlog totaled USD 15.9 billion.
Historically, Embraer seasonally has fewer deliveries during the first quarter of the year, and in 2020 in particular, the commercial aircraft deliveries in the first quarter were also negatively impacted by the conclusion of the separation of Embraer’s Commercial Aviation unit in January.
During the first quarter, Embraer Executive Jets announced that the new Phenom 300E was granted its Type Certificate by ANAC (National Civil Aviation Agency of Brazil), EASA (European Union Aviation Safety Agency) and the FAA (Federal Aviation Administration). The new Phenom 300E is the recently enhanced version of the Phenom 300 series, which was the most delivered business jet series in the 2010s.
Also in this period, Emgepron, a Brazilian state-owned company linked to the Ministry of Defense through the Brazilian Navy Command, and Águas Azuis, a company created by thyssenkrupp Marine Systems, Embraer Defense & Security and Atech, signed the contract to build four state-of-the-art Tamandaré Class Ships, with deliveries scheduled between 2025 and 2028.
SAO PAULO, May 14 (Reuters) – Brazilian airline Azul SA said on Wednesday it had agreed with planemaker Embraer SA to delay the delivery of 59 E2 jets, with a list price of 24.5 billion reais ($4.16 billion), to 2024 or later.
The planes had been initially set for delivery from 2020 to 2023, according to an Azul securities filing.
Azul said the agreement was a step to shore up its business amid the COVID-19 pandemic, which also led it to reduce its April capacity by 90% in comparison to the same month in 2019.
($1 = 5.8852 reais)
(Reporting by Alberto Alergiri; Editing by Sandra Maler)
On March 5th, in Rio de Janeiro, Emgepron, an independent state company, linked to the Ministry of Defense through the Brazilian Navy Command, and Águas Azuis, a company created by thyssenkrupp Marine Systems, Embraer Defense & Security and Atech, signed the contract for building four state-of-the-art Tamandaré Class Ships, with deliveries scheduled between 2025 and 2028.
The construction will take place 100% in Brazil, in Itajaí, Santa Catarina State, and is expected to have local content rates above 30% for the first vessel and 40% for the others. thyssenkrupp will supply the naval technology of its proven MEKO® Class shipbuilding platform of defence vessels that is already in operation in 15 countries. Embraer will integrate sensors and weaponry into the combat system, bringing also to the program its 50 years’ experience in systems technology solutions and in-service support.
Atech, an Embraer Group company, will be the supplier of the CMS (Combat Management System) and IPMS (Integrated Platform Management System, from L3 MAPPS), and the recipient of technology transfer in cooperation with ATLAS ELEKTRONIK, a thyssenkrupp Marine Systems subsidiary that produces the CMS and sonar systems.
“We are grateful to participate again in such important milestone in the history of Brazil’s naval defence with the most advanced ships in their class. Looking back the great achievements we had since the construction of Tupi Class submarines in 1980s, it is a recognition of the technological excellence, reliability and longevity solutions we have offered for almost two centuries. The Tamandaré Class Programme will strengthen our ties by transferring technology and generating highly qualified jobs for the country”, said Dr. Rolf Wirtz, CEO of thyssenkrupp Marine Systems.
“The partnership validates our efforts to expand our defence and security portfolio beyond the aeronautical segment. Over the past few years, we have acquired expertise in developing and integrating complex systems, among others, in order to qualify Embraer to meet the needs of the Brazilian Navy, further strengthening our position as a strategic partner of the Brazilian State”, said Embraer Defense & Security President and CEO Jackson Schneider.
In addition to construction, the contract includes a sustained transfer of technology in naval engineering for building military ships and combat and platform management systems, as well as integrated logistical support and lifecycle management.
The Tamandaré Class Programme has the potential to generate direct and indirect job opportunities of high level of qualification. It provides for a solid national partnership model with proven ability to transfer technology and qualify local labour, which guarantees the development of future strategic defence projects in Brazil.
The naval alliance between thyssenkrupp Marine Systems and Embraer Defense & Security can also enable creating a base for exporting naval defence products from Brazil.
Embraer (ERJ) delivered a total of 198 jets in 2019, of which 89 were commercial aircraft and 109 were executive jets (62 light and 47 large), which represents an increase of 9% compared to 2018, when the Company delivered a total of 181 jets. The deliveries were within the outlook ranges for 2019 of 85 to 95 for the commercial aviation market and of 90 to 110 for the business aviation market. In the fourth quarter of 2019, Embraer delivered 81 jets, being 35 commercial aircraft and 46 executive jets (20 light and 26 large). As of December 31, the firm order backlog totaled USD 16.8 billion. See details below:
Deliveries by Segment
4Q19
2019
Commercial Aviation
35
89
EMBRAER 175 (E175)
22
67
EMBRAER 190 (E190)
2
5
EMBRAER 195 (E195)
1
3
EMBRAER 190-E2 (E190-E2)
4
7
EMBRAER 195-E2 (E195-E2)
6
7
Executive Aviation
46
109
Phenom 100
4
11
Phenom 300
16
51
Light Jets
20
62
Legacy 650
3
5
Legacy 450
10
15
Legacy 500
5
11
Praetor 500
3
3
Praetor 600
5
13
Large Jets
26
47
TOTAL
81
198
In the fourth quarter of 2019, Embraer delivered the first Praetor 500 business jet to Flexjet, a global leader in private jet travel, just over one year after its announcement at the 2018 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE).
Embraer also announced the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL), expanding its service capacity through a lease agreement with Jetscape Services for a dedicated hangar. Embraer’s presence in Florida is strategic for its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as for those whose travel frequently brings them through South Florida.
In the same period, Embraer delivered the second KC-390 Millennium to the Brazilian Air Force and the contract with the Portuguese Government for a firm order for five KC-390 airlifters was included in Embraer’s backlog in the fourth quarter of 2019.
At the Dubai Air Show, Embraer announced the name and designation of its multi-mission medium aircraft, the Embraer C-390 Millennium. The new designation reflects increased flexibility and value for operators that look for a transport/cargo aircraft to perform airlift and air mobility missions, among others. In addition, Embraer and Boeing announced that the joint venture to promote and develop new markets for the C-390 Millennium multi-mission airlift and air mobility aircraft will be called Boeing Embraer – Defense. The organization will only be operational after the companies’ joint venture receives regulatory approvals and meets closing conditions.
Also during the event in Dubai, Embraer announced two contracts for commercial aircraft: a contract with Air Peace for three additional E195-E2s, confirming purchase rights from the original contract and a firm order for three E190 jets with CIAF Leasing.
Embraer welcomed three new E2 operators. Helvetic Airways, from Switzerland, and Air Kiribati, national airline of the Republic of Kiribati, received its first E190-E2 jets, while Binter, of Spain, received its first E195-E2. Embraer also signed firm orders with SkyWest, for 20 E175 that will be operated by American Airlines, and with Congo Airways for two E175 aircraft, with purchase rights for a further two.
SAO PAULO, Feb 4 (Reuters) – Shares in Brazil’s Gol rose as much as 5.5% on Tuesday after the budget airline said it had signed a codeshare agreement with American Airlines.
“When this is approved by Brazilian and U.S. authorities, Gol’s new codeshare will allow its customers to connect to more than 30 destinations in the USA,” Gol said in a statement, adding that American will now offer more U.S.-South American flights than anyone else.
The flights will operate from Gol’s hubs in São Paulo, Rio de Janeiro, Brasilia and Fortaleza, and will be added to current regular flights to Miami and Orlando.
Investors cheered the news, pushing Gol’s shares up as much as 5.5% to 36.25 reais, making it one of the biggest gainers on the Ibovespa. At midday in Sao Paulo trading, Gol shares were up 4.6% and the benchmark index was up 1.5%.
“The partnership will increase the quantity and quality of its flights, offering the more daily flights between South America and the United States than any other partner,” analysts at Guide Investimento said in a client note on Tuesday.
The agreement will make it easier for customers to purchase flights for both airlines using a single reservation. It will also integrate check-in, boarding and baggage checking throughout the trip, and include the air miles program.
(Reporting by Paula Laier Writing by Jamie McGeever Editing by Jonathan Oatis)
The Boeing logo is displayed on a screen, at the NYSE in New York
BRASILIA (Reuters) – Brazilian antitrust regulator Cade on Monday approved Boeing Co’s <BA> purchase of Embraer SA’s <ERJ> commercial aviation division without restrictions, according to a statement on the agency’s website.
Cade’s top administrative council could still call for a reconsideration of the case, putting the matter to a vote.
The companies welcomed the move on Monday, with Boeing saying it remained confident of getting approval from the European Commission, the last hurdle to the transaction.
The European Union has set an April 30 deadline to decide on the deal.
Boeing has offered to pay $4.2 billion for 80% of Embraer’s commercial jet division, which builds passenger jets in the 70- to 150-seat segment.
That puts it in direct competition with next-generation jets designed by Bombardier Inc <BBD-B.TO> and acquired by Europe’s Airbus SE <EADSY>, which rebranded them the A220 program.
(Reporting by Ricardo Brito; additional reporting by Kanishka Singh; Writing by Jake Spring; Editing by Sandra Maler, Marguerita Choy and Aditya Soni)
E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos
DUBLIN (Reuters) – Brazilian low-cost carrier GOL, which has 130 of Boeing’s grounded 737 MAX jets on order, expects to be flying the jet by April and hopes to secure a compensation deal within months, chief financial officer Richard Lark said on Monday.
“We at GOL are planning April” for the jet’s return to service, Lark told journalists. He said he expected to finalize a deal with Boeing within months that would “make investors whole” for losses associated with the delivery delays.
(Reporting by Conor Humphries; editing by David Evans)
FILE PHOTO: An employee works near a Boeing 737 Max aircraft at Boeing’s 737 Max production facility in Renton
A Boeing 737 Max aircraft taxis the runway at the Renton Municipal Airport in Renton
SYDNEY (Reuters) – Papua New Guinea carrier Air Niugini has updated its contract with Boeing Co <BA> to delay the delivery of its four 737 MAX jets on order until at least 2024, the airline’s chief executive said on Tuesday.
The carrier had been due to receive its first 737 MAX this year.
Air Niugini Chief Executive Alan Milne told Reuters the delay would give the airline more time to complete a broader review of its fleet plans, including a replacement for its smaller Fokker jets.
“This will then determine if the MAX is still appropriate for Air Niugini, or whether another Boeing product would better suit as a replacement for the 737/767,” he said, in reference to older models in the airline’s fleet.
Milne said it was possible the 737 MAX orders could be switched to the smaller Embraer SA <ERJ> E2 family if Boeing’s deal to buy the bulk of the Brazilian planemaker’s commercial division closes.
“Air Niugini is a valued Boeing customer and we are working closely with the airline to meet its evolving fleet requirements,” a Boeing spokesman said. “Unfortunately, we do not disclose ongoing customer discussions and have no further comment.”
Some other Boeing customers, including Malaysia Airlines, Virgin Australia Holdings Ltd <VBHLF> and Norwegian Air Shuttle ASA’s <NWARF> leasing arm have also postponed the delivery of 737 MAX jets since the model was grounded globally last March after two fatal crashes.
Boeing confirmed on Monday that it has temporarily halted production of the 737 MAX in Washington State in recent days. The company had said in December it would halt production at some point this month.
(Reporting by Jamie Freed; Editing by Paul Simao and Sam Holmes)
PRYCBK Delta airlines airplane preparing for landing in the blue sky at day time in international airport
Dec 11 (Reuters) – Brazil’s GOL Linhas Aereas Inteligentes SA said late Tuesday that Delta Air lines Inc has sold more than 32.9 million shares it held in the company, a few months after the Atlanta-based airline announced its decision to exit stake.
Delta’s decision to sell its stake was expected, following its acquisition of a 20% stake in GOL competitor LATAM Airlines Group SA for $1.9 billion in September.
Delta did not immediately respond to Reuters’ request for comment.
The deal with LATAM Airlines was Delta’s largest since it merged with Northwest Airlines a decade ago, and ended the Chilean carrier’s ties with American Airlines Group.
Delta’s deal with Latin America’s largest carrier would give it a bigger footprint in the region, where American Airlines has been leading the charts.
American Airlines confirmed in October it was negotiating a possible partnership with GOL, after a newspaper reported that the two companies were in contact the same day that Delta bought its stake in LATAM.
The structure or content of any potential partnership was unclear, Brazil’s Valor Economico said at the time.
(Reporting by Bhargav Acharya in Bengaluru, Editing by Sherry Jacob-Phillips)
BRUSSELS, Dec 5 (Reuters) – An association representing minority investors in Brazil is lobbying European antitrust regulators to spike a deal between planemakers Embraer SA and Boeing Co, calling it a killer acquisition.
Aurelio Valporto, the head of minority investor association Abradin, said the European Commission should block Boeing’s proposed $4.2 billion purchase of 80% Embraer’s commercial passenger jet division or demand hefty concessions.
“What will be left from Embraer won’t survive, and even if it was possible to survive, Embraer wouldn’t be able to produce any aircraft with 50 passengers or more,” Valporto said in an interview late on Wednesday, arguing that Embraer and Boeing planes compete in the marketplace.
Embraer’s commercial jet division focuses on the 70 to 150-seat segment, competing directly with the CSeries jets designed by Bombardier Inc, a division that was bought by Europe’s Airbus SE.
Boeing aims to take control of Embraer’s commercial jet business, its most profitable, to compete directly with Airbus in the market for planes with fewer than 150 seats.
Embraer said in a statement on Thursday that the deal will “serve the interests of shareholders by enabling Embraer to expand markets and increase sales.” The deal was backed by around 97% of Embraer’s shareholders earlier this year.
Valporto complained about the deal to the European Commission two months ago, saying it hurt competition in the Brazilian aerospace industry, and on Wednesday took his grievance to antitrust officials in Brasilia.
The deal has already been approved by regulators in the United States, China and Japan. If it closes, Embraer will receive dividends from its remaining 20% stake in the commercial jet business, but will have to rely more heavily on its business jets and defense divisions to turn a profit. Those two divisions have posted losses in recent quarters.
The European Commission, which launched a full-scale investigation into the deal in October, declined to comment.
Boeing said it and Embraer had been engaged with the European Commission and other global regulatory authorities since late last year.
“We continue to co-operate with the European Commission and CADE as they assess our transaction and look forward to a positive resolution,” a spokesman for the company said.
The EU has voiced concerns the deal would remove Embraer, the world’s third-largest commercial aircraft maker, from the industry, an indication that it may demand significant concessions from Boeing.
The EU regulator halted its investigation last month while waiting for Boeing to submit data on the deal.
(Reporting by Foo Yun Chee in Brussels Additional reporting by Marcelo Rochabrun in Sao Paulo Editing by Kirsten Donovan and Matthew Lewis)
