August 28, 2007 -- Brazil's mail service Correios is studying the creation of its own air fleet to transport mail and is in talks with local aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ), or Embraer, to produce specially adapted jets, Correios President Carlos Henrique Almeida Custodio said Tuesday, according to the local Estado newswire. Correios hopes to formulate plans for the service by the end of the year, which could involve a private sector partner. At present, the mail service hires third parties to transport mail in contracts totaling approximately 500 million Brazilian reals ($250 million).

Embraer does not currently manufacture cargo jets but it is studying an adaptation of its E190 large regional jet for this use, according to a local press report. The Correios order could be for up to 19 planes. Correios prefers the smaller E190 jets to jumbo jets as they can land at smaller airports. An Embraer press official said the company has no comment to make on the report. At a meeting with investors Tuesday, Embraer's Chief Financial Officer Antonio Luiz Pizarro Manso said the company is evaluating whether there is a market for a cargo jet based on the E-190. He said preliminary studies were promising.

Source: Dow Jones International News
Source: Factiva