Brazil's Embraer Closes Deals to Sell 30 Jets to Lufthansa
Brazilian aircraft manufacturer Embraer said Monday that it has cut deals to sell 30 jets to Germany's Deutsche Lufthansa and another 10 planes to Japan Airlines.
Empresa Brasileira de Aeronautica's deal with Lufthansa includes an option to switch part of the order for 30 E-190 large regional jets to other models of regional planes. A preliminary accord on this deal, which could be worth up to $2.76 billion, was announced in April.
The first Lufthansa jet is set for delivery in January 2009.
The order replaces one by Swiss International Air Lines for 15 of the smaller Embraer 170 jets and 15 of the larger Embraer 195 planes. As a result, the order won't substantially change the backlog, the company said.
Separately Monday, the opening day of the world's biggest air show outside Paris, Embraer closed a deal to deliver 10 E-170 jets to Japan Airlines and sold options for another five of the regional jets.
Japan Airlines will receive the first jet in 2008 as part of its restructuring plan. The contract could be worth $435 million if the airline takes up all the options, Embraer said.
As of March 31, Embraer had an order backlog of $15 billion.