Brazilian aircraft maker may eventually gain access to U.S. Export-Import Bank export credit support for aircraft coming off the company’s Melbourne, Fla., production line.
“I think it is something we would be willing to consider,” says Bob Morin, vice president of Ex-Im’s transport division.
Brazil would welcome such a move and would consider working with Ex-Im to support such aircraft deliveries, Marcio Nobre Migon, head of the aircraft finance department at Brazil’s export credit agency, BNDES, told the annual International Corporate Jet & Helicopter Finance conference on Feb. 8.
The U.S. may only partially fund Phenom deals, to cover U.S. content. However, Morin points out that it would not be the first time the U.S. backed deals for a foreign aircraft maker, pointing to sales of’s Learjets.
Ex-Im backing of Embraer’s products, however, could become ensnared in politics. Kansas and Wichita-area politicians recently voiced opposition to the U.S. Air Force’s selection of Embraer’s Tucano over theAT-6 for the $355 million Light Air Support contract. Political leaders say that U.S. Air Force business should stay in the U.S.
Further, the U.S. International Trade Commission (ITC) in April is expected to release a report on an investigation of the impacts that foreign governments have had on the U.S. business aviation industry. The report was requested by Kansas Gov. Sam Brownback (R) and Kansas Republican Reps. Lynn Jenkins and Mike Pompeo, with Brownback specifically pointing to a concerted effort by Brazil to expand Embraer’s presence.
Embraer has become a formidable competitor to Wichita business jet makers. Scott Donnelly, chairman, president and CEO ofparent , recently told analysts that Embraer has been a driver behind Cessna’s recent launch of the M2 light jet. The M2 was designed as an answer to Embraer’s Phenom 100, which is assembled in Melbourne.