Embraer (NYSE: ERJ; BM&F-BOVESPA: EMBR3) today delivered the first EMBRAER 190 jet to Venezuelan Airline Conviasa, Consorcio Venezuelano de Industria Aeronáutica e Serviços Aéreos S.A. The companies signed a contract last July for the acquisition of six E190, including an option for an additional 14 units of the same aircraft model. The contract also includes a flight simulator and a logistics package to support operations for the next five years.
The total value of the deal, at list price and January 2012 economic conditions, is USD 271.2 million, and could reach USD 904 million should all purchase options be converted into firm orders. The delivery ceremony was attended by Brazil´s Vice minister of Development, Industry and Foreign Trade, Ricardo Scheafer, representing the Minister Fernando Pimentel, the Venezuelan Minister for Air & Aquatic Transportation, Elsa Gutiérrez Graffe, Ambassadors and other officials from both countries, besides Embraer and Conviasa executives.
“We are certain that the E190 will have an extremely important role in the development of Conviasa and Venezuela’s air transportation, due to its versatility, comfort and low operational cost”, said Paulo Cesar Silva, President of Embraer, Commercial Aviation. “Additionally, Conviasa’s entry into the E-Jet family of customers strengthens our leadership in Latin America and the Caribbean where we have over a 70% share of the commercial aviation market in the 120-seat jet segment.”
“In compliance with the determinations of our Commander President Hugo Rafael Chávez Frías, and the implementation of the air transport policies by Minister Elsa Gutierrez, the new Embraer aircraft will allow us to interconnect national and international destinations at a regional level, with much more quality”, said César Martínez Ruiz, President of Conviasa. “Thus, we position Venezuela as an air transport provider with modern and efficient aircraft for the rendering of public service to all Conviasa passengers.”
The Venezuelan airline’s E190s are configured with 104 seats in economy class, in the traditional and comfortable seat arrangement of the Embraer E-Jets, with four seats per row, two on each side of the aisle and no middle seat.
Conviasa is the eleventh member of the E-Jet family of customers in Latin America and the Caribbean. The company currently offers 14 domestic and 9 international flight destinations. Embraer forecasts that the Latin American and Caribbean market will grow an average of 7% a year over the next 20 years, higher than the 5% global average.
Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Sep 24, 2012