Embraer bullish on bizjet sales
Embraer’s executive jet division comes to Dubai in bullish form with announcements for more than $200 million of new business and forecasts for strong growth in the sector, particularly in light and very light jets.
The biggest order, worth $146 million, comes from Abu Dhabi–based Falcon Aviation Services (FAS), which has signed for four Phenom 300 very light jets, three Legacy 600 super-midsized jets and a single Lineage 1000 ultra-large business jet. It is the first announced sale of the Lineage 1000, and the first sale in the Middle East. An Embraer spokesman revealed only that “under 15” aircraft have been sold to date but added that “we will see several more orders at Dubai.”
Delivery of the first Legacy 600 will be in early 2008, followed by the Lineage 1000 in early 2010 and the first Phenom 300 in 2011.
FAS owner and CEO, HH Dr. Sheikh Sultan, said Embraer won the order because its experience in developing jets with high availability “gives FAS the right tool to continue its aggressive growth strategy.”
Spain’s Globalia Group has signed for 11 aircraft including eight Phenom 100s, two Phenom 300s and one Legacy 600 in a deal worth $62 million. Globalia subsidiary Pepe Jets, one of the largest tourist groups in Spain, will operate the airplanes. Delivery of the Legacy 600 is set for April 2008, followed by the first Phenom 100 in October 2010 and first Phenom 300 in April 2011.
According to Claudio Camelier, Embraer’s vice-president, market intelligence, forces all point in the right direction for business aviation, which is why Embraer has thrown its corporate weight into a market that in 2007 will see more than 1,000 deliveries for the first time. “Stock market performance, individual wealth, corporate profits and the macro-economic picture have led to double-digit growth in emerging markets,” he said.
The Brazilian manufacturer forecasts a market for 13,150 aircraft worth $201 billion over the next decade, of which VLJs will account for 26 percent and light jets 22 percent, although most of the value will come from sales of ultra large and large business jets.