Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the month of June 2013, specifically dated June 18, 2013. The report announces a new firm order for three E-Jets from Air Costa, a new regional airline based in Vijayawada, India, during the 50th International Paris Air Show.
Key Financial Metrics
The filing does not provide specific financial statements, revenue figures, profit margins, cash flow data, debt levels, or liquidity metrics. The document focuses exclusively on a commercial transaction.
- New Orders: 3 aircraft (2 Embraer 170s and 1 Embraer 190).
- Customer: Air Costa (India).
- Backlog Status: The order was already included in Embraer's backlog as an "undisclosed" customer prior to this announcement.
- Source of Aircraft: Two E170s arranged via ECC Leasing (Embraer's wholly-owned subsidiary); one new E190 purchased directly from Embraer.
Material Changes
There are no material changes to financial performance or operational results reported in this filing. The primary material event is the public disclosure of a previously undisclosed customer (Air Costa) and the specific aircraft types ordered.
Guidance, Outlook, and Management Commentary
Management Commentary:
- John Slattery (CCO, Embraer Commercial Aviation) highlighted the potential of the Indian regional aviation market, noting that E-Jets are ideal for connecting underserved secondary and tertiary markets.
- Captain Babu (CEO, Air Costa) emphasized the efficiency and reliability of the E-Jets for linking underserved markets with direct flights.
- Ramesh Lingamaneni (Chairman, Air Costa) expressed commitment to fleet additions and new routes over the medium term.
- Embraer views the Indian market as having tremendous potential for regional connectivity.
- Air Costa plans to initially connect southern Indian cities (Bangalore, Chennai, Hyderabad, Vijayawada) with key secondary cities in the north and northwest.
- The filing includes a standard disclaimer regarding forward-looking statements. Risks include general economic, political, and trade conditions in Brazil and global markets, industry trends, investment plans, delivery capacity, and governmental regulations.
Important Facts for Investor Verification
- Verify the total value of the three-aircraft order, as the specific contract price is not disclosed in this text.
- Confirm the delivery schedule for the two E170s sourced from ECC Leasing versus the new E190.
- Monitor the operational launch timeline of Air Costa to assess the realization of the order.
- Review subsequent filings for updates on the "undisclosed" backlog that was clarified by this announcement.