Brazilian planemaker Embraer targets defense jet sales in Mexico visit
By Kylie Madry
MEXICO CITY, Sept 30 (Reuters) -Brazilian planemaker Embraer EMBR3.SA views Mexico as a prime market for its Super Tucano and C-390 defense aircraft, the company's head said on Monday.
Embraer CEO Francisco Gomes Neto said that the planemaker, the world's third-largest, was in active talks with Mexico's government and had brought a C-390 to the country for demonstration flights.
The C-390 is known as a multi-mission aircraft, and competes with Lockheed's C-130.
"We believe it can be a great solution for Mexico," Gomes Neto told Reuters during a visit to Mexico ahead of incoming President Claudia Sheinbaum's inauguration.
The executive did not say how many of each aircraft it was looking to sell to Mexico.
If Mexico were to tie up a purchase of the lighter Super Tucano aircraft, which Gomes Neto highlighted for its use as a training aircraft or for border surveillance, it would join a number of other Latin American countries firming up orders in recent months.
Gomes Neto said that it was also eyeing business jet sales in Mexico, the world's third-largest market for such aircraft.
"We expect to grow our fleet in Mexico by 11% in the next two years," he said.
Embraer tied up a $750 million order in June for 20 E2 jetliners to Mexico's military-run commercial airline Mexicana.
Gomes Neto shrugged off concerns from analysts about the stability of the deal, considering Mexicana's alleged failure to pay back a U.S. contractor.
"We are working with Mexicana very closely, we really want this operation to be a great success to show the market how good the aircraft is," he said.
The executive also said that Foreign Minister Alicia Barcena had met with the firm earlier this year in Brazil and that "she was very positive about the future of Mexicana."
"Embraer is looking for a win-win situation in doing business with Mexico," he added.
Reporting by Kylie Madry in Mexico City
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
