By David Shepardson and Allison Lampert
WASHINGTON (Reuters) - Embraer said on Wednesday it has reached a deal for 50 firm orders and purchase rights for another 50 with budget carrier Avelo Airlines for the Brazilian planemaker’s E195-E2 jets, the first U.S. deal for the plane.
The announcement in Washington coincides with a major gathering of aerospace leaders. Embraer, the world's third largest planemaker, has been lobbying the Trump administration to remove 10% tariffs, while highlighting the reliance
of U.S. airlines on its regional jets.
Last week, Embraer described the planned announcement as a U.S. milestone for its business. The list-price value of the order is $4.4 billion, excluding purchase rights.
U.S. clients buy 45% of Embraer's commercial planes and 70% of its executive jets, all of which rely on many U.S. parts.
Arjan Meijer, CEO of Embraer Commercial Aviation, and Avelo Airlines CEO Andrew Levy told reporters in Washington that they believe the tariffs should be zero on aviation assets.
Levy said it was not clear whether the planes would face tariffs when they are delivered between 2027 and 2032.
Meijer said the deal is hugely important for Embraer, which has 21 airline customers around the world for the E2 plane. "We don't call it a profit-hunter by accident," Meijer said, hoping other U.S. airlines will see the plane in action and want to buy it.
Levy said the E2 will complement Avelo's fleet of Boeing 737-800 jets, which have significantly more seats. He said it would help the carrier grow its business. He added that over time the E2 would replace the Boeing jet and would open up access to airports with runways that are shorter than 5,000 feet.
Avelo Airlines operates a business model of short-haul travel.
(Reporting By Allison Lampert and David Shepardson in Washington, D.C.; Editing by Mark Porter, Emelia Sithole-Matarise and David Gregorio)
