Embraer Sees Signs of Recovery
Embraer Executive Jets is making a splash here in Las Vegas, having brought its entire industry-spanning product line to the static display, including its new Legacy 500, which is making its first North American show appearance, and the Lineage 1000E extended-range version of its fleet flagship, which is sporting the manufacturer’s new branded paint scheme.
At its NBAA press conference yesterday morning, president Ernest Edwards noted several economic factors that could translate to a sustained industry recovery. Embraer predicts a moderate 2.8 percent in world GDP growth between now and the end of 2016, which represents an uptick over the past relatively flat years, and based on mid-year predictions, the airframer anticipates that 2013 will see a new high water mark for U.S. corporate profits, adding another factor for sales optimism. Thus far in 2013, Edwards stated the company has noted an increase in flight utilization for its fleet over the previous year.
Based on predictions from industry data provider JetNet, over the next five years, the midsize jet segment is expected to be the fastest-growing, representing approximately 42 percent of the total new jet orders, while large aircraft orders decline. That could bode well for Embraer, the company believes, with the new Legacy 500 and 450 poised to enter service in that segment. In its long-range forecast, the company predicts a worldwide need for 9,250 new business jets, representing $250 billion in revenues. “It’s good news, [but] we’d like it to be better,” said Edwards, who added that the company expects 49 percent of those aircraft to be delivered to the U.S., followed by Europe and China as the next biggest markets.
The company will unveil the cabin mockup for its Legacy 450 today at 11 a.m. at its booth (No. N2532). COO and senior vice president of operations Marco Túlio Pellegrini said the company has revised the mid-light jet’s range upwards to 2,500 nm from 2,300 nm without compromising performance. The cabin length has also been extended by a total of six inches, adding some extra space between seating areas. Pellegrini said the decision had been made two years ago based on customer feedback from mockup testing, but is only being announced now that the actual cabin mockup is displayed.
Both the Legacy 500 and 450 will feature the compact E2VS (Embraer Enhanced Vision System), making them the first midsize and mid-light jets to utilize Rockwell Collins’s HGS-3500 compact HUD and its EVS-3000, which can detect all types of runway lights, including LEDs.
On the Lineage 1000E, the OEM expects to deliver the first examples by the end of the year. The revamped bizliner, which costs $2 million more than its predecessor, has a wide variety of interior upgrades including an improved noise-reduction package. Due to its lighter structural weight, the 1000E has an added 200 nm of range, giving a total of 4600 nm. New cockpit options include autoland and the E2VS system.
Embraer expects soon to augment its service center network, which currently numbers 68 locations worldwide. The newest service center in São Paulo, Brazil occupies approximately 200,000 sq ft and will begin operations shortly. An associated $25 million FBO is slated to open early next year.