Em­braer Com­mer­cial

Strength to Strength

SP's Aviation - - TABLE OF CONTENTS - BY R. CHAN­DRAKANTH

EEMBRAER COM­MER­CIAL AVI­A­TION IS the third largest com­mer­cial plane maker in the world, be­hind Air­bus and Boe­ing. This has come about in less than five decades, thanks to the fore­sight and de­ter­mi­na­tion of the lead­ers in Brazil who en­vi­sioned an aero­space busi­ness that would go be­yond the shores of Brazil. The jour­ney for the Brazil­ian aero­space con­glom­er­ate that pro­duces com­mer­cial, mil­i­tary, ex­ec­u­tive and agri­cul­tural air­craft and pro­vides aero­nau­ti­cal services has been one which has made Brazil­ians proud. The sev­eral in­vest­ments the Brazil­ian Gov­ern­ment made in the 1940s and 1950s to de­velop a do­mes­tic air­craft in­dus­try has not only paid rich div­i­dends but also cre­ated a seg­ment for the world which was get­ting seam­lessly net­worked.

EMB 110 BANDEIRANTE DE­BUT

From 1969 when Em­presa Brasileira de Aeronáu­tica (Em­braer) was cre­ated as a gov­ern­ment-owned cor­po­ra­tion, and ini­tially pro­duc­ing the Em­braer EMB 110 Bandeirante, the Brazil­ian aero­space be­he­moth has come a long way. With of­fices and fac­to­ries around the world and over 5,000 air­craft sold on ev­ery con­ti­nent, Em­braer is the mar­ket leader in com­mer­cial jets with up to 120 seats. It is also the fifth largest man­u­fac­turer of ex­ec­u­tive jets in the world and the largest de­fence and se­cu­rity so­lu­tions com­pany in Brazil.

The Bandeirante, a tur­bo­prop air­craft, in­tended for dual civil­ian and mil­i­tary use, with a ca­pac­ity for trans­port­ing 15 to 21 pas­sen­gers, has been the solid start­ing point for the Brazil­ian aero­space in­dus­try. At the end of the 1970s, Em­braer had moved on to a new tech­no­log­i­cal and in­dus­trial plane with new prod­ucts such as the EMB 312 Tu­cano and the EMB 120 Brasilia. The huge suc­cess achieved by the ERJ 145 plat­form and the E-Jet fam­ily and now the E-2 se­ries has firmly en­trenched the com­pany as a global aero­space leader. Em­braer Com­mer­cial Avi­a­tion has been re­spon­si­ble for EMB 110 Bandeirante; EMB 120 Brasilia; Em­braer/FMA CBA 123 Vec­tor (can­celled af­ter two pro­to­types were built); Em­braer Re­gional Jets (ERJ 135 — 37 pas­sen­gers; ERJ 140 — 44 pas­sen­gers; and ERJ 145 — 50 pas­sen­gers); Em­braer E-Jet fam­ily (E170 — 80 pas­sen­gers; E175 — 88 pas­sen­gers; E 190 — 110 pas­sen­gers; and E195 — 122 pas­sen­gers); and Em­braer E-Jet E2 fam­ily (E175-E2 — 80 to 88 pas­sen­gers; E190-E2 — 97 to 106 pas­sen­gers and E195-E2 — 120 to 132 pas­sen­gers).

E-JETS PRO­GRAMME, SOLID PER­FOR­MANCE

The E-Jets pro­gramme has been the most sat­is­fy­ing for the com­pany hav­ing notched up over 1,300 E-Jets or­ders. Since they first en­tered rev­enue ser­vice in 2004, over 100 air­lines and leas­ing com­pa­nies have added E-Jets to their fleets and as­set port­fo­lios. The fam­ily of air­craft has ac­cu­mu­lated over 27 mil­lion flight hours and 23 mil­lion cy­cles. Em­braer is cel­e­brat­ing April 2017 its 20th anniversary of the first com­mer­cial flight of the ERJ-145, an air­plane that took to the skies un­der the weight of ex­pec­ta­tion and has been de­liv­er­ing ever since. It is a true run­way leg­end. To­day, Em­braer E-Jets are fly­ing on ev­ery con­ti­nent, trans­form­ing the re­gional avi­a­tion land­scape. In 2003, Em­braer set up a fac­tory in China — the Harbin Em­braer Air­craft In­dus­try Com­pany Lim­ited with the line of busi­ness be­ing man­u­fac­tur­ing or as­sem­bling of com­plete air­craft. It man­u­fac­tures the

ERJ fam­ily for the Chi­nese mar­ket.

Born from a Brazil­ian Gov­ern­ment plan and hav­ing been state-run from the be­gin­ning, Em­braer be­gan a pri­vati­sa­tion process dur­ing the gov­ern­ment of Ita­mar Franco. Em­braer was sold on De­cem­ber 7, 1994, which helped it avoid a loom­ing bank­ruptcy, though the gov­ern­ment re­tains in­ter­est through pos­ses­sion of golden shares. In the mid-1990s, Em­braer pur­sued a prod­uct line more fo­cused on com­mer­cial planes over mil­i­tary air­craft, thus help­ing to ex­pand rapidly.

Em­braer Com­mer­cial Avi­a­tion ended 2016 with 108 to­tal com­mer­cial air­craft de­liv­er­ies meet­ing the guid­ance for the year and the rev­enues for the over­all com­pany was $6,217.5 mil­lion. It has re­leased the 2017 guid­ance for to­tal rev­enues of $5.7 bil­lion to $6.1 bil­lion, driven by ex­pected de­liv­er­ies of 97 to 102 jets in com­mer­cial avi­a­tion and 105 to 125 ex­ec­u­tive jets.

E-JETS E2, GO­ING FU­TUR­IS­TIC

On March 7 this year Em­braer wel­comed the new­est mem­ber of its E-Jets E2 fam­ily — the first E195-E2, a roll-out that hap­pened be­fore 7,000 em­ploy­ees, cus­tomers, VIPs and com­pany ex­ec­u­tives at its São José dos Cam­pos fa­cil­ity. Paulo Ce­sar, Pres­i­dent of Em­braer, and John Slat­tery, Pres­i­dent of Com­mer­cial Avi­a­tion, ad­dressed the au­di­ence be­fore the E195-E2 was of­fi­cially wel­comed with a tra­di­tional dous­ing of cham­pagne. The E195-E2 is the se­cond of three new-gen­er­a­tion E-Jets E2s. It has three more rows of seats com­pared to the cur­rent E195 and can ac­com­mo­date up to 146 pas­sen­gers in high­den­sity, sin­gle-class con­fig­u­ra­tion. The E195-E2 will de­liver up to 20 per cent lower cost per trip com­pared to air­craft of sim­i­lar size. In ad­di­tion to the high-den­sity con­fig­u­ra­tion, the E-Jet’s most pop­u­lar ar­range­ment will likely fea­ture 120 seats in two classes. The E195-E2 has 800 km (450 nm) more range than its pre­de­ces­sor so that it can fly up to 4,500 km (2,450 nm) non­stop. Two E195-E2s will be used in the cer­ti­fi­ca­tion cam­paign — one pro­to­type for aero­dy­namic test­ing and the other to val­i­date main­te­nance tasks and the in­te­rior. The first flight is sched­uled in the se­cond half of this year. The first cus­tomer de­liv­ery is on tar­get for 2019.

EM­BRAER IS ON A FIRM WICKET AND WITH RE­GIONAL CON­NEC­TIV­ITY EX­PAND­ING IN MANY COUN­TRIES, THE AERO­SPACE MA­JOR HAS PO­SI­TIONED IT­SELF TO FIT THE BILL

IN THE SEG­MENT OF COM­MER­CIAL JETS WITH 70 TO 130 SEATS, EM­BRAER MAINTAINS ITS LEAD­ER­SHIP WITH MORE THAN 50 PER CENT OF THE SALES AND 60 PER CENT OF THE DE­LIV­ER­IES ON THE WORLD MAR­KET

In 2014, Brazil’s Azul placed an or­der for up to 50 E195E2s. The car­rier is both the launch cus­tomer and launch op­er­a­tor of the air­craft. Since it ac­quired its first E-Jet back in 2008, Azul has cap­tured one-third of Brazil’s do­mes­tic mar­ket. To­day, it flies more than 70 E-Jets and is the car­rier with the largest fleet of E195s in the world.

CRISS-CROSS­ING THE WORLD

Em­braer E-Jets are criss-cross­ing the world, thanks to the many op­er­a­tors on all the con­ti­nents. In the Amer­i­cas, the op­er­a­tors are Copa Air­lines (Panama), United Ex­press, Delta Con­nec­tion, JetBlue Air­ways, and Amer­i­can Ea­gle (all USA); Aero Mex­ico Con­nect (Mex­ico); Air Canada; TAME (Ecuador); Satena and Avianca (Colom­bia); Azul (Brazil); Aus­tral (Ar­gentina) and Con­vi­asa (Venezuela).

In Africa and the Mid­dle East the air­lines are Saudi Arabian; Royal Jor­da­nian; Oman Air; Egyp­tAir Ex­press; Kenya Air­ways; Arkia Air­lines (Israel); LAM (Mozam­bique); Bo­ra­jet (Turkey); Royal Air Maroc; Punto Azul (Equa­to­rial Guinea); Mau­ri­ta­nia Air­lines (Mau­ri­ta­nia) and Air Burk­ina (Burk­ina Faso).

In Asia, the op­er­a­tors are Man­darin Air­lines (Tai­wan); Tian­jin Air­lines, China South­ern, He­bei Air­lines, GX Air­lines and Col­or­ful Guizhou Air­lines (all China); J-Air and Fuji Dream Air­lines (Ja­pan); Air As­tana (Kaza­khstan); Myanma Air­ways (Myan­mar); Kal­star Avi­a­tion (Indo- ne­sia) and Air Costa (In­dia — the air­line has sus­pended op­er­a­tions since March due to fi­nan­cial prob­lems).

In Europe, the op­er­a­tors are LOT Pol­ish Air­lines (Poland); Al­i­talia and Air Dolomiti (Italy); Flybe and Bri­tish Air­ways Ci­tyF­lyer (UK); Fin­nair (Fin­land); Hop (France); Mon­tene­gro Air­lines (Mon­tene­gro); KLM City Hop­per (Nether­lands); Air Europa (Spain); Lufthansa City­line (Ger­many); Air Moldova (Moldova); Peo­ple’s Vi­enna Line (Aus­tria); Bul­garia Air (Bul­garia); Belavia (Be­larus); JetAirFly (Bel­gium); Ukraine In­ter­na­tional (Ukraine); Azer­bai­jan Air­lines (Azer­bai­jan); Aurigny Air Services (Chan­nel Is­lands); Sara­tov Air­lines (Rus­sia); Aus­trian Air­lines; Anadolu­jet (Turkey) and Hel­vetic Air­ways (Switzer­land). In Ocea­nia, the op­er­a­tors are AirNorth; Vir­gin Aus­tralia and Cob­ham Avi­a­tion Services/Na­tional Jet (Aus­tralia).

The com­pany has dis­closed new con­tracts with Air­link (South Africa), Peo­ple’s Vi­en­naLine (Aus­tria) and Eastern Air­ways (United King­dom). Em­braer’s pool pro­gramme is cur­rently sup­port­ing more than 50 per cent of ERJ cus­tomers and 65 per cent of E-Jets cus­tomers worldwide. In the seg­ment of com­mer­cial jets with 70 to 130 seats, Em­braer maintains its lead­er­ship with more than 50 per cent of the sales and 60 per cent of the de­liv­er­ies on the world mar­ket.

Em­braer is on a firm wicket and with re­gional con­nec­tiv­ity ex­pand­ing in many coun­tries, the aero­space ma­jor has po­si­tioned it­self to fit the bill.

GREAT ECONOMICS: FAM­ILY IN FLIGHT

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