By David Shepardson and Gabriel Araujo
FARNBOROUGH, England July 21 (Reuters) - Brazilian planemaker Embraer announced orders on Tuesday for 28 E2 aircraft at the Farnborough Airshow in England, including 20 jets for South American airline group Abra Group and orders from existing clients Binter and Luxair.
Abra's order for E195-E2 jets marks the first purchase of Embraer aircraft by the group that controls Brazilian carrier Gol and Colombia's Avianca, whose fleets currently comprise Boeing and Airbus
planes.
Although Abra did not immediately disclose how it would allocate the aircraft, Gol would join rivals LATAM Airlines and Azul as operators of Embraer jets in the planemaker's home market if Abra adds them to its fleet.
Azul is a longtime Embraer client, while LATAM placed an order last year. Gol and Embraer have long discussed a potential order, amid pressure from the Brazilian government for all major local carriers to fly Embraer jets.
Abra's deal includes 10 purchase options and 15 purchase rights. The first aircraft delivery is expected in late 2027.
PRODUCT PLANS UNCLEAR
Embraer Commercial Aviation CEO Arjan Meijer told reporters the company is undecided about its future product plans.
"We're a very capable company, but we need to make up our mind what we want to do."
Embraer has a record-high backlog of orders and it expects that to grow. "A bigger backlog gives us more security for future sales. We want to grow the business," Meijer said. "We're selling more into the future, and we see continued demand."
Embraer also disclosed an order from Spanish airline Binter for five E195-E2 jets. Luxembourg's flag carrier Luxair converted purchase rights into firm orders for three E190-E2 jets while securing an additional purchase right.
Japan's Fuji Dream Airlines ordered two first-generation E175 aircraft, Embraer said.
Itau BBA analysts estimated the firm orders to be worth approximately $1.3 billion, assuming a 50% discount to list prices, compared with Embraer's $32.1 billion backlog at the end of the first quarter.
"Positive news from Embraer that could keep sentiment around the Farnborough Airshow elevated through the end of the week," the analysts wrote in a note to clients.
(Reporting by David Shepardson and Gabriel Araujo, writing by Maria Rugamer, editing by Andrew Heavens and Rod Nickel)
