Brazil's Embraer confirms Chinese order, Azul gets new lease
SAO PAULO May 19 (Reuters) - Brazil's Embraer SA booked a firm order for 22 aircraft with a Chinese airline on Tuesday, confirming part of a prior accord during a visit from China's Premier Li Keqiang.
Embraer said the deal with China's Tianjin Airlines, which was worth $1.1 billion at list prices, firmed up orders for 20 E195 jets and two of the next-generation E190-E2 that had been laid out in a preliminary agreement for 40 aircraft.
The founder and chief executive of Brazilian airline Azul SA, David Neeleman, also announced a deal with the financing arm of Industrial and Commercial Bank of China to lease eight E195 aircraft, five of which had been used previously.
Together the deals shored up demand for the larger end of Embraer's E-Jet portfolio, which has suffered in recent years as the planemaker came to rely on orders from U.S. regional carriers for the smaller and less profitable E175 aircraft.
Embraer shares rose 4 percent in Sao Paulo.
The first of the E195s for Tianjin Airlines will be delivered in 2015 and the re-engined E190-E2 is due to enter service in 2018, Embraer said, adding that the remaining 18 E190-E2s from a prior accord were subject to approval by Chinese officials.
Brazil's President Dilma Rousseff and the Chinese premier also signed trade, finance and investment deals worth tens of billions of dollars. (Reporting by Brad Haynes)
© Thomson Reuters 2017 All rights reserved.