Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the month of June 2015. The report details a specific commercial transaction announced on June 15, 2015, at the 51st International Paris Air Show, involving a new aircraft order from SkyWest, Inc.
Key Financial Metrics
- Order Value: USD 355 million (based on 2015 list prices).
- Aircraft Quantity: 8 E175 jets.
- Backlog Impact: The contract value is included in Embraer's 2015 second-quarter backlog.
- Revenue/Profit/Cash Flow: The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes and Transaction Details
The primary material event is the firm order for eight E175 aircraft by SkyWest, Inc., to be operated under a Capacity Purchase Agreement (CPA) with Alaska Airlines. This agreement reconfirms part of a larger order placed in May 2013 for 100 E175s (40 firm, 60 reconfirmable). This specific reconfirmation increases the total number of firm orders within that agreement to 55 aircraft. Deliveries for these eight jets are scheduled for 2016.
Guidance, Outlook, and Management Commentary
Paulo Cesar Silva, President & CEO of Embraer Commercial Aviation, highlighted the long-standing relationship with SkyWest and the E175's excellent economics and cabin spaciousness. SkyWest President Chip Childs expressed satisfaction with the E175 product and the partnership with Alaska Airlines. The filing includes standard forward-looking statement disclaimers, noting that projections are subject to risks regarding economic conditions, industry trends, and delivery capabilities.
Investor Verification Checklist
- Verify the inclusion of the USD 355 million order value in the official Q2 2015 backlog figures.
- Confirm the delivery schedule for the eight E175s is set for 2016.
- Review the total firm order count for the E175 current generation, now standing at 55 aircraft under the SkyWest/Alaska Airlines agreement.
- Assess the impact of this order on the broader 100-aircraft reconfirmable order placed in 2013.