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Embraer Delivers 17 Commercial And 27 Executive Jets In 3Q19

Firm Order Backlog Totals $16.2 Billion

Embraer delivered a total of 44 jets in the third quarter of 2019 (3Q19), of which 17 were commercial aircraft and 27 were executive jets (15 light and 12 large). As of September 30th, the firm order backlog totaled $16.2 billion.

In the beginning of the quarter, Embraer signed a contract with SkyWest, Inc. for a firm order of seven E175 jets in a 70-seat configuration. SkyWest will operate the aircraft for Delta. The order has a value of $340 million, based on 2019 list prices, and was already included in Embraer's 2019 second-quarter backlog as an "undisclosed" customer. Deliveries are expected to begin in the fourth quarter of 2019.

In the third quarter, Embraer also delivered its first E195-E2, the largest of the three members of the E-Jets E2 family of commercial aircraft. The recipients were AerCap, the world's largest aircraft leasing company, and Azul Linhas Aéreas Brasileiras. Azul is the global launch operator for the E195-E2 and had placed firm orders for 51 of the type. The airline will receive another five aircraft in 2019.

In the Executive Jets segment, Embraer announced a purchase agreement with Flexjet, a global leader in private jet travel, for a fleet of Praetor 500, Praetor 600 and Phenom 300 jets. The announcement was made during the 2019 National Business Aviation Association's Business Aviation Convention and Exhibition (NBAA-BACE), in Las Vegas, Nevada. Valued at up to $1.4 billion, at current list prices, this deal was included in the 2019 second quarter backlog, with deliveries starting in the fourth quarter of 2019.

Also, the new Praetor 500 midsize business jet was granted the Type Certificate from three regulatory authorities: ANAC, the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil); the FAA, and EASA. Embraer has already received orders for the Praetor 500, including in Brazil. Also, Embraer delivered a Praetor 600 to its first Brazilian customer in 3Q19.

In the Defense & Security segment, the Portuguese Government announced a firm order of five multi-mission Embraer KC-390 airlifters, representing the entry of the aircraft into the international market. The contract, which was signed at Embraer's facility in Évora, Portugal, also includes services and support and a flight simulator as part of the process to modernize Portuguese Air Force capabilities to support national Armed Forces operations and increase readiness in missions of public interest. Deliveries are scheduled to start in 2023. This contract will be included in Embraer's backlog in the fourth quarter of 2019.

Embraer also delivered the first KC-390 to the Brazilian Air Force (FAB) at a ceremony held at Anápolis Air Base, starting preparations for the aircraft's entry into service by FAB's First Troop Transport Group (1st GTT). Embraer has been conducting theoretical and practical training with the Air Force teams to start operations.

In 3Q19, Embraer Services & Support signed a long-term Pool Program Agreement with Mongolian Hunnu Air to support a wide range of repairable components for the airline's recently leased fleet of E190 through the TechCare portfolio of solutions. Horizon Air, a subsidiary of Alaska Air Group, selected Embraer Aircraft Maintenance Services (EAMS) in Nashville, Tennessee, as the exclusive heavy maintenance provider for the company's fleet of 30 Embraer E175 aircraft. The multi-year agreement includes airframe maintenance, modifications and repair services.

(Source: Embraer news release. Images from file)

FMI: www.embraer.com

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