Embraer Boosts Brazil’s Trade Balance with $7 Billion Aircraft Export Contracts

Brazil’s trade balance received a significant boost with the export of 39 Embraer aircraft, financed by the Brazilian Development Bank (BNDES). The three separate contracts with Skywest Airlines, Inc, American Airlines, and Azorra Aviation Holdings LLC amount to over R$ 7 billion in high-tech and high-value-added goods exports. BNDES will provide approximately R$ 6 billion in financing for the Brazilian aircraft manufacturer headquartered in São José dos Campos.

Beyond advancing the national industry of technological goods, aircraft exports contribute to the preservation and creation of highly skilled jobs, as well as generating crucial foreign exchange for the country’s economy.

Aloizio Mercadante, President of BNDES, emphasized the vital role of financing Embraer’s aircraft exports for Brazil. He stated, “BNDES, as a Brazilian export credit agency, aims to provide conditions that ensure equal competitiveness for Brazilian exporters in the international market, generating employment and income in Brazil.”

Francisco Gomes Neto, President and CEO of Embraer, highlighted the enduring and robust relationship between Embraer and BNDES. He stated, “The support we receive for exporting the aircraft we produce is essential for consolidating our growth and expanding our global presence. The Bank’s involvement benefits Embraer and creates thousands of high-skilled jobs in Brazil and the increased export of high-value-added products.”

The contract with SkyWest Airlines, Inc enables the export of 10 E-175 Embraer jets (up to 76 passengers). American Airlines has BNDES-approved financing for acquiring up to 11 E-175 jets.

New Models

The E-195-E2 (up to 146 seats) and E-190-E2 (up to 114 seats) jets are Embraer’s largest and most sophisticated aircraft. The sale of up to 18 jets of both models was contracted with the U.S.-based company Azorra Aviation Holdings LLC, which specializes in acquiring and leasing aircraft for commercial airline operations.

Historical Support

Since 1997, the year of BNDES’ first support to Embraer, the Bank has financed approximately $25.6 billion to export 1,300 aircraft from the manufacturer. During this period, the operations enabled the company to compete internationally on equal terms with its competitors. BNDES’ support complements private market financing.

“This year has been the best in the last ten in terms of financing approvals for Embraer’s exports,” noted José Luís Gordon, BNDES Director of Productive Development, Innovation, and Foreign Trade. He emphasized that, since the COVID-19 pandemic, the sector faced substantial impacts, with a significant reduction in new aircraft acquisitions and a decrease in international credit availability.

“In this scenario, by providing predictability through export financing and driving the company’s sales recovery, BNDES plays a strategic role in the Federal Government’s neo-industrialization agenda,” he added.

Source: Comex do Brasil

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