Embraer Sells 3 Planes To Ecuador's TAME

Brazil's Embraer will sell three aircraft from its new jet family to Ecuador's state-run TAME airline for USD$70 million, TAME President Jorge Cabezas Quiroz said on Monday.

Quiroz told reporters at Empresa Brasileira de Aeronautica's (Embraer) home base in Sao Jose dos Campos the deal included the planes -- two Embraer 170 76-seaters and one 104-seat Embraer 190 -- and a maintenance and training package. The first two aircraft are expected to be delivered in September.

According to Embraer's price list, the planes made by the world's fourth-largest civilian aircraft manufacturer would cost USD$85 million.

Embraer is also in talks with Ecuador to sell its Super Tucano military aircraft as well as spy planes.

Romualdo Monteiro de Barros, Embraer's director for the defense market, said the lower price tag on the 190/170 jets bears no relation to Embraer's desire to sell military equipment to the country.

TAME Linea Aerea del Ecuador's Quiroz said the firm would pay 20 percent of the sum under the contract itself and would seek a credit from the Brazilian National Bank for Economic and Social Development (BNDES).

Apart from the firm order that will make TAME the first user of Embraer's new 170/190 jet family, the company placed an optional order for four jets.

The Brazilian planes will replace Boeing jets on TAME's fleet of nine planes. TAME had also considered CRJ 400 and CRJ 700 jets made by Embraer rival, Bombardier of Canada, as well as Franco-Italian ATR aircraft.

Last Friday, Embraer said it delivered 30 planes in the first quarter, up from 23 in the same period a year ago, and maintained its delivery target of 145 jets for this year and next. It closed March with a firm order book worth USD$9.9 billion, down from USD$10.1 billion at the end of December.

(Reuters)