Embraer, a Brazilian aircraft manufacturer, reported a successful close to the calendar year 2014, keeping itself in a neck-and-neck race with its counterpart Bombardier for the title of third largest aircraft manufacturer in the world. Currently, only Boeing and Airbus are larger. TAM Linhas Aereas, a Brazilian airline, is in the process of finalizing an order for thirty regional jets from Embraer, in efforts to strengthen its domestic Brazilian network.
The order would include 18 of Embraer’s E2 E-Jets along with options for an additional 12. In addition, GOL, which is Brazil’s largest airline, is in discussions with both Boeing and Embraer in a deal valued at $1.7 billion for 20 aircraft to replace its older models. Embraer’s updated E195-E2 is competing with Boeing’s updated 737 Max 7 for the deal from GOL. If Embraer is to win the deal, which is expected to be announced before the end of the quarter, this would represent a huge success for the company. GOL currently operates an all-Boeing fleet.
Embraer, as of late, has emerged as the top seller of regional jets and other medium-range aircraft. While Bombardier has been developing a new CSeries jet from scratch, Embraer chose to instead modify and revamp its existing E-Jet, a move which has paid dividends. Embraer already has over 200 orders for the new E-Jets, which is in line with Bombardier’s aircraft orders. However, Bombardier has shelled out a significantly larger amount in its development of the new CSeries.
Embraer, founded in 1969, is a publicly-traded Brazilian aircraft manufacturer that generates around $5.7 billion in annual revenue. It develops and supplies commercial, military, executive, and agricultural aircraft as well as aeronautical services. The company currently employs close to 20,000 people worldwide.
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