The world’s third-largest commercial jet builder, Embraer, has secured a $600 million loan, partly backed by Brazil’s government. This comes even as the aviation industry continues to be one of the hardest hit by the COVID-19 pandemic.
According to the planemaker, the $600 million loan will be split half and half between state bank BNDES and private banks.
However, the terms of the deal bar Embraer from laying off any employees for two months after receiving the loan.
On 26th February 2019, Embraer and Boeing had announced the acquisition of an 80% share of the Embraer commercial division, which would take the name Boeing Brasil – Commercial, and market the E-Jet and E-Jet E2 series of narrow-body short-to medium-range twin-engine jet airliners.
However, the acquisition was stopped in April 2020, after Boeing fell into financial trouble. The planemaker was adversely affected by the reduction in demand for aircraft as a result of the coronavirus pandemic and, to a lesser degree, the two aircraft disasters in 2018 and 2019.
Embraer is a Brazilian aerospace conglomerate which produces commercial, military, executive, and agricultural aircraft and provides aeronautical services. It is the third-largest producer of civil aircraft after Boeing and Airbus.
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