Brazil’s Embraer Revises 2004-2005 Flight Plan

    Brazil’s Embraer today announced its third-quarter 2004 deliveries for the Airline, Corporate and Defense markets. There were 40 jets delivered in the third quarter bringing the total of the delivered planes this year to 106. 100 of those went to the Airline Market.

    On September 12, 2004, North American airline US Airways filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. US Airways signed a contract in May 2003 for the purchase of 85 Embraer 170 aircraft.


    Embraer had delivered 22 EMBRAER 170 aircraft to US Airways by September 13, 2004. These deliveries have been temporarily suspended until the airline’s situation becomes clear.


    After the end of the quarter, American Eagle reached a tentative agreement with Embraer to cancel its last 18 ERJ 145 regional jet aircraft deliveries, which were planned to go from July 2005 to February 2006.


    The third quarter of 2004 was marked by the signing by Air Canada of a purchase agreement containing 45 firm orders and 45 options for the EMBRAER 190 aircraft.


    This announcement confirmed the commercial proposal signed by Air Canada in December 2003 and allowed Embraer to add 45 new firm orders and 45 options to its order book.


    In light of the above-described scenario, Embraer is revising its total deliveries forecast for the years 2004 and 2005, which change to 145 aircraft for both years.


    As of September 30, 2004, Embraer’s total firm order backlog, including the Airline, Corporate and Defense markets, totaled US$ 11.0 billion.


    The backlog, including options, reached US$ 29.5 billion. As the American Eagle agreement has not been finalized, it is not reflected in Embraer’s third- quarter order book.


    Embraer (Empresa Brasileira de Aeronautica S.A.) is the world’s leading manufacturer of commercial jets up to 110 seats. With headquarters in São José dos Campos, state of São Paulo, the Company has offices and customer service bases in Australia, China, France, Singapore and the United States.


    Embraer is among Brazil’s leading exporting companies. As of September 30, 2004, Embraer had a total workforce of 14,541 people, and its firm order backlog totaled US$ 11 billion.


    Empresa Brasileira de Aeronautica S.A.
    http://www.embraer.com.br/

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