Embraer agrees to $400m jet sale with CDB Leasing

Brazilian aircraft maker Embraer (ERJ.NYSE, EMBR3.SAO) will sell 10 ERJ-190 commercial jets to the leasing unit of China Development Bank (CDB), Reuters reported. The deal is worth US$400 million at current market prices for the aircraft. Embraer will begin deliveries of the aircraft in the second half of the year, and CDB Leasing will in turn lease the jets to China Southern Airlines (ZNH.NYSE, 600029.SH, 1005.HK). Embraer and CDB Leasing had signed a letter of intent in December 2009, and the new agreement is an indication of recovering orders for commercial jets following the global financial crisis. Embraer’s order pipeline fell 23.5% to US$15.3 billion in the third quarter of 2010.