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Embraer Inks Chinese Jet Deal
Embraer Inks Chinese Jet Deal
Brazil’s Embraer S.A. signed a preliminary agreement to sell 20 executive jets to China’s Minsheng Financial Leasing Co., Ltd., a subsidiary of China Minsheng Banking Co. Ltd., and one of the largest financial institutions providing executive jets leasing services in China. The two companies agreed and signed a Memorandum of Understanding (MoU) at Embraer’s headquarters in S?o Jos? dos Campos, S?o Paulo, Brazil. According to a statement issued by the company, Embraer expects the agreement to be converted into a firm order in the next five years. Delivery of the jets are expected to commence this financial year. China’s business aviation market currently has the greatest potential in business aviation globally. The agreement is anticipated to strengthen Embraer’s penetration into the Chinese executive aviation market, thereby leveraging the Chinese market demand with its line of state-of-the-art executive products. In April 2011, the company announced its cooperation with Aviation Industry Corporation of China (AVIC) to assemble business jets in China. This MoU is anticipated to further consolidate its presence in China’s business aviation market With this agreement, Minsheng Financial Leasing Co. Ltd entered into a long-term partnership with Embraer to jointly promote the robust development of China’s executive aviation market. The agreement laid a solid foundation for Minsheng Financial Leasing to be the top executive aviation leasing institution in Asia. According to data released in February 2011 by the General Aviation Manufacturers Association, Embraer accounted for 19% of the global executive aviation market deliveries in 2010 and is the world’s only manufacturer offering a full line of executive jets, from the entry level to ultra-large categories. The company has recorded fastest growth in aviation market segment since 2001. Of late, Embraer announced the delivery of 25 commercial and 23 executive jets in the second quarter of 2011, with the firm order backlog totaling $15.8 billion as on June 30, 2011.

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