Embraer Signs New Brazilian Airline to $ 1.4 Bn Contract

The company's fleet will have 36 EMBRAER 195 jets, and could grow to 76 airplanes

(Sao Jose dos Campos, March 27, 2008) -- Embraer signed a contract with the newest
Brazilian airline, commanded by the businessman David Neeleman, for the sale of 36 EMBRAER 195 jets. The agreement also includes options for another 20 aircraft and purchase rights for 20 more. The total value of the order, at list price, is US$ 1.4 billion, and could reach US$ 3 billion, if all of the options and rights of purchase are confirmed.

"We are indeed proud to have been selected by this new Brazilian airline to bring to the domestic market a fresh, customer-driven alternative for local passengers," stated Frederico Fleury Curado, Embraer President and CEO. "The EMBRAER 195 offers a distinctive combination of performance and comfort and, most certainly, will capture the preference of Brazilian consumers who are looking for more modern and spacious airplanes."

The new company registered a request for an Airline Company Certificate of Approval (Certificado de Homologacao de Empresa de Transporte Aereo - CHETA) with the National Civil Aviation Agency (Agencia Nacional de Aviacao Civil - ANAC) this month, and will soon launch a marketing campaign to publicize its name and brand. The first jet will be delivered by Embraer yet this year.

"The EMBRAER 195 is the perfect airplane for the Brazilian market," stressed David Neeleman, President of the new company. "With 30% fewer seats than the aircraft favored by the competition, the EMBRAER 195 offers competitive unit costs and much lower trip costs. Because we can make money with fewer passengers per flight, we can provide nonstop service in more markets than exists today."

Source : Embraer

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