This archive report was first published on 16 June 2020.
On June 16, 2020, Embraer, the world's third-largest commercial jet builder, secured a $600 million loan backed by Brazil's government, a move that comes as the aviation industry continues to grapple with the COVID-19 pandemic.
The loan, which will be split equally between state bank BNDES and private banks, includes a condition that bars Embraer from laying off any employees for two months after receiving the loan.
Embraer's financial struggles are not new, having been affected by the reduction in demand for aircraft due to the pandemic, as well as two aircraft disasters in 2018 and 2019. The company's planned acquisition by Boeing in 2019 was also halted in April 2020 due to Boeing's financial troubles.
Embraer is a Brazilian aerospace conglomerate that produces commercial, military, executive, and agricultural aircraft, and provides aeronautical services. It is the third-largest producer of civil aircraft after Boeing and Airbus.
