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Embraer sells 20 E190s to Argentine state carrier

Written by Francisco Camoes · Filed Under Aeronautics News 

May 22, 2009

Francisco Camoes

Embraer is selling 20 E190 jets to Argentine carrier Austral Lineas Aereas for $700 million – marking the first time E-jets will operate in the country.

Brazilian state bank BNDES is financing 85% of the purchase. The first jet will be delivered in the first half of 2010.

Austral is a subsidiary of Aerolineas Argentinas, Argentina’s state carrier, which was nationalised last year owing to problems over cancellations and strikes.  Argentine President Cristina Fernandez said the deal restored some national pride. Prior to yesterday’s deal with Embraer, the airline had not bought any aircraft for 16 years. 

“We are very proud to premier our E-jets in Argentina and participate in the renovation of the fleet of this internationally renowned airline,” said Embraer executive vice president, airline market Mauro Kern.

The jets will be the AR (advanced range), with a range of up 2,400 nautical miles.

Austral will use the aircraft to expand its domestic footprint and to potentially open new markets in South America.

The deal comes as Embraer and the Argentine government signed a memorandum of understanding (MoU) in support of the development of Area Material Corboda (AMC) for the purpose of supplying services and parts for Embraer aircraft.

Embraer’s first quarter profits plunged by 75% and in March the Brazilian manufacturer revised down its delivery estimate for 2009 and said it will cut 20% of its global workforce. Embraer said the deal with Austral will help with efforts to minimise job cuts.

Recently published figures from IATA show that the market for business jets continues to suffer amid the global recession.

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