With the new financing facility, the number of aircraft acquired or to be acquired by SkyWest with BNDES financing totals 200 units.
SAO JOSE DOS CAMPOS, BRAZIL – The Brazilian Development Bank (BNDES) approved financing for the export of six Embraer E175 commercial jets to the north American regional carrier SkyWest Airlines, Inc. (SkyWest), whose operations began in 1972. The aircraft will be delivered through the end of the year to SkyWest under existing previously announced orders with Embraer. The aeronautical sector is considered strategic due to its high added value in technological content, innovation and labor training.
The financing, in the order of R$670 million, will be through BNDES Exim Post-shipment, with disbursements made in reais in Brazil in favor of Embraer. SkyWest (importer) will assume the commitment to pay in dollars to BNDES, generating foreign currency for Brazil.
This is the second financing tranche with BNDES for the sale of Embraer aircraft exports to SkyWest Airlines using the innovative Aircraft Financing Insurance Consortium (AFIC) offering from Marsh, the world’s leading insurance broker and risk advisor. The first financing was executed in December 2020 in amount of R$ 400 million.
The Aircraft Non-Payment Insurance (ANPI) policy is underwritten by four international insurance groups: AXA XL, AXIS Capital, SOMPO International and Fidelis Insurance. The ANPI policy provides that, in the event of default by the debtor, the insurers make all scheduled payments to the lender until all outstanding principal is repaid. The AFIC insurance offering also increases the flexibility and speed of implementation of financing between the parties for buyers of Embraer aircraft.
BNDES's support for Embraer's exports began in 1997 and provides conditions of competitiveness similar to those of its international competitors, which also provide financing from the development banks and export credit agencies (Export Credit Agencies) of their respective countries.
A customer of BNDES since 1998, and of Embraer since 1986, SkyWest operates the world's largest fleet of the E175 jet consisting of 232 E175 aircraft. BNDES, since 1998, has provided 10 different financing facilities to SkyWest covering up to 200 aircraft, comprised of 18 delivered EMB120 aircraft, 175 delivered E175 aircraft and 7 to be delivered E175 aircraft.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
