Brazilian airline BRA Transportes Aereos will buy 20 Embraer 195-model jets, aircraft maker Embraer said on June 20.

Embraer said it signed an agreement with BRA valued at US$736 million at January 2007 list prices. BRA has an option to buy 20 more of the planes, and the total value of the transaction, including the options, could be as much as US$1.4 billion.

BRA, which sold a 20 percent stake to a group of investors including Goldman Sachs and Bank of America in December, will take the first deliveries of the 195 jets in the second half of 2008, Embraer said. The Brazilian airline also agreed to lease two 195 jets from GE Commercial Aviation Services.

BRA, which started operating as a charter airline in 1999, will be the first Brazilian airline to operate the larger Embraer jets.

With a fleet of 10 airplanes, BRA has regular flights and charters to 33 cities in Brazil and outside the country, including Lisbon, Madrid and Buenos Aires.

BRA is part of the tourism business of brothers Humberto and Walter Folegatti, which includes the PNX tour operator and HWF hotel chain.