From the Newsroom*
São Paulo – Brazilian aircraft manufacturer Embraer announced the sale of 39 aircraft to several airlines during the Dubai Air Show. The value of the contracts, according to the company, reaches US$ 583.5 million. The total, however, may exceed US$ 2.1 billion in case the companies convert a series of purchase options into firm orders. The aerial sector fair started on Sunday (11th) and ends on Thursday (15th), in the United Arab Emirates.
Yesterday (12th), 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.
Yesterday, 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 aeroplanes, 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 aeroplanes 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 (9th), Embraer disclosed its results for the third quarter. In the period, the organisation posted revenues of US$ 1.43 billion and profit of US$ 195 million. The company delivered 47 jets in the period.
DAE purchases 200 Airbus and Boeing aircraft
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 aeroplanes and 30 large aeroplanes, 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.
*Translated by Mark Ament
