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Brazil's Embraer eyes deal with Chinese airline for 20 E-jets -sources

Published 04/11/2023, 11:48 AM
Updated 04/11/2023, 11:51 AM
© Reuters. FILE PHOTO: An Embraer logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse
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By Gabriel Araujo

RIO DE JANEIRO (Reuters) - Brazilian planemaker Embraer SA (NYSE:ERJ) aims to sign a deal for the sale of 20 commercial jets to a Chinese airline during President Luiz Inacio Lula da Silva's visit to China this week, two people familiar with the matter told Reuters on Tuesday.

The deal would mark a breakthrough for Embraer in China, where it has struggled to find new business since the 2016 closure of a joint venture at a factory in Harbin.

That venture with Chinese group Avic, launched in 2003 during Lula's first presidential term, produced a previous generation of regional jets and Legacy 650 executive jets.

© Reuters. FILE PHOTO: An Embraer logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse

Embraer has delivered 110 commercial aircraft to Chinese airlines, including 70 to Hainan Airlines and 20 to China Southern, according to securities filings. The planemaker has not received a new order from a Chinese airline since leaving Harbin in 2016.

ICBC Financial Leasing, a subsidiary of the Industrial and Commercial Bank of China, had received five of 10 next-generation E-195-E2 on order at the end of last year, according to an Embraer filing.

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