Embraer to Sell Aircraft to U.S. Airlines

26 January 2005 5:00am

Embraer, the Brazilian jet maker, cut a deal with American carrier Republic Airways to sell that company sixteen E-170 jetliners for $400 million.

The contract could exceed $1.5 billion if the airline decided to buy 34 additional planes later on, Embraer informed in a press release.

Delivery of the E-170 aircraft will kick off on June 2005 into the second half of 2006. The new contract will raise the total number of jetliners to 39, with Republic Airways willing to purchase as many as 61 planes.

Embraer´s stocks slumped dramatically last year after US Airways threatened to put sales from the Brazilian jet maker on hold.

The company, based in Sao Jose dos Campos, in the state of Sao Paolo, was Brazil´s top exporter from 1999 to 2001, falling down a notch between 2002 and 2004.