Embraer May Land Multibillion-Dollar E-Jets Sale to ILFC
Brazilian planemaker Embraer is in line to sign as many as 100 new airplane sales to AIG airplane leasing subsidiary International Lease Finance Corporation, or IFLC.
Yesterday, Embraer announced that it has signed a letter of intent with ILFC, describing plans by the latter to purchase 25 of Embraer's second-generation E190-E2 aircraft, and 25 more second-gen E195-E2s. According to the terms of the LOI, ILFC is also taking out options to purchase a further 25 E190-E2 and 25 E195-E2 -- potentially doubling the size of the base order.
ILFC has also now officially become "the launch customer" -- i.e., the first customer to buy the plane -- among aircraft leasing companies. In a statement, its CEO, Henri Courpron, was quoted saying, "We are pleased to be a lessor launch customer for the new E-Jets E2 and look forward to growing our relationship with Embraer."
The new family of E2 Embraers includes three models available for sale, the E190-E2 and E195-E2 that ILFC is buying, and also a smaller jet dubbed the E175-E2. Pricing on the new planes does not yet appear to be public, but pricing of the previous generation of E-Jets was roughly $32 million for the first-gen E190, and $40 million for the E-195, suggesting that this deal could ultimately be worth as much as $7.2 billion to Embraer.
Deliveries are slated to begin in H1 2018.
The article Embraer May Land Multibillion-Dollar E-Jets Sale to ILFC originally appeared on Fool.com.
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