Embraer S.A.: Material Fact

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Dec 01, 2016, 06:57 ET

SAO JOSE DOS CAMPOS, Brazil, Dec. 1, 2016 /PRNewswire/ -- Embraer S.A. (NYSE: ERJ; BM&F BOVESPA: EMBR3) announces that it has revised its initial projection of certification and entry into service of the E175 E2 jet from 2020 to 2021. This rescheduling is based on the following two factors:

Continued interest in the current generation E175 jet in the North American market; and
Recent negotiations between the major US airlines and their respective pilot unions during which the maximum takeoff weight restrictions for 76-seat aircraft included in the relevant scope clauses remained unchanged.

The next round of negotiations between the major US airlines and their respective pilot unions is scheduled to occur in 2019 at which time such restrictions may be revisited.

The expected timeframes of certification and entry into service for the other models of this family of aircraft, the E190 E2 and the E195 E2, continue unchanged and should occur in the first half of 2018 and in 2019, respectively. The Company reiterates that the development and certification program of these aircraft is progressing as expected.

Entry Into Service

AIRCRAFT	INITIAL PROJECTION	CURRENT PROJECTION
E190 E2	1st half of 2018	1st half of 2018
E195 E2	2019	2019
E175 E2	2020	2021

The Company's firm order backlog for aircraft in the E2 family also remains unchanged, with the following orders in backlog:

Firm Order Backlog*

AIRCRAFT	FIRM ORDERS	OPTIONS
E190 E2	82	95
E195 E2	90	80
E175 E2	100	100
Total	272	275
*Does not include previously announced purchase commitments and LOIs for 123 aircraft.