Royal Air Maroc negotiates Purchase of Embraer Airplanes (EMBR3), says source

THE Embraer (EMBR3) is in a dispute to provide aircraft for Moroccan airline Royal Air Maroc, a source of negotiations told Reuters on Wednesday.

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According to the source, which spoke on confidential condition, the airline of the African country wants to expand and renew its fleet in three different categories, and Embraer is competing in one of them, that of smaller aircraft.

“About Morocco, what we know is that, yes, they have a plan to expand their aircraft fleet in three categories. In one of them, the smaller size, Embraer is competing,” the source said.

Earlier on Wednesday, the newspaper Folha de S.Paulo said Royal Air Maroc’s executive president, Abdelamid adoured, said the company is negotiating the purchase of up to 200 aircraft with different suppliers, including Embraer.

In an event with Brazilian and international businessmen in Morocco, the CEO said Embraer was being considered to provide models of the E-Jet E2 line, according to Folha.

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Sought, Embraer said it would not comment. It was not possible to contact Royal Air Maroc.

Embraer’s shares rose more than 2%, but then reversed the gains and lost 3.7% near the close of the trading session.

Last month, sources in the sector told Reuters that Airbus was approaching an agreement with Royal Air Maroc to about 20 of its small A220 passenger jets as the African airline also prepares for a higher Boeing jet request.

Royal Air Maroc has been in negotiations for over a year to renew its formal formation mostly of Boeing models and hopes to continue with the US aircraft manufacturer for most of their needs, including 737 Maxs and 787 Dreamliners, according to sources.