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Embraer announces first US order of 50 E195-E2 jets in deal with Avelo Airlines
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Embraer announces first US order of 50 E195-E2 jets in deal with Avelo Airlines
Sep 10, 2025 10:30 AM

WASHINGTON, Sept 10 (Reuters) - Embraer ( ERJ ) said

on Wednesday it has reached a deal for 50 firm orders for the

Brazilian planemaker's E195-E2 jets and purchase rights for

another 50 with budget carrier Avelo Airlines, the first U.S.

deal for the plane.

The announcement in Washington coincides with a major gathering

of aerospace leaders. Embraer ( ERJ ), the world's third-largest

planemaker, has been lobbying the Trump administration to remove

10% tariffs, while highlighting the reliance of U.S. airlines on

its regional jets.

Last week, Embraer ( ERJ ) described the planned announcement as a U.S.

milestone for its business. The list-price value of the order is

$4.4 billion, excluding purchase rights.

U.S. clients buy 45% of Embraer's ( ERJ ) commercial planes and 70%

of its executive jets, all of which rely on many U.S. parts.

Arjan Meijer, CEO of Embraer's ( ERJ ) commercial aviation business,

and Avelo Airlines CEO Andrew Levy told reporters they believe

U.S. tariffs should be zero on aviation assets.

"I also believe that that will change between now and when

we actually take the aircraft," he said, referring to a delivery

time between 2027 and 2032.

Meijer said the deal is hugely important for Embraer ( ERJ ), which

has 21 airline customers around the world for the E2 plane. "We

don't call it a profit-hunter by accident," Meijer said, hoping

other U.S. airlines will see the plane in action and want to buy

it.

Levy said the E2 will complement Avelo's fleet of Boeing

737-800 jets, which have significantly more seats. He said it

would help the carrier grow its business. He added that over

time, the E2 would replace the Boeing ( BA ) jet and open access to

airports with runways that are shorter than 5,000 feet (1,524

metres).

Avelo Airlines operates a business model of short-haul

travel.

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