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Halogen Guides : Jets

Embraer CEO Concedes Credit Crunch is Making it Harder to Purchase Planes


In a sign that the financial crisis is impacting the private jet industry, the CEO of Brazilian aircraft manufacturer Embraer concedes that tight credit markets are making jet purchases difficult for some buyers. “Some customers have said they are facing more difficulties in financing,” said Embraer CEO Frederic Curado, in an interview with Bloomberg last week. “But we haven’t seen any impact on our business.”

The current crisis nearly claimed one of the biggest players in aircraft finance. AIG, which was rescued from collapse by the U.S. Treasury Department, is the parent company of International Lease Finance Corporation (ILFC), one of AIG’s few profitable subsidiaries.

In spite of the economic slowdown, Embraer remains on track to deliver 215 planes this year. However, many of those orders were made when loans were easier to secure. Given in the current credit crunch, next year’s deliveries may be impacted.

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