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.