Embraer E-Jet Production To Drop by 15- to 20 Percent

By: Gregory Polek

January 13, 2009
Air Transport and Cargo, Aerospace Industry

Brazil’s Embraer expects to reduce production of its E-Jet line of airliners by between 15- and 20 percent this year as it prepares to manage a backlog that saw its first decline in two and a half years during last year’s fourth quarter. Embraer airline market executive vice president Mauro Kern told AIN this week that a planned ramp-up of Phenom business jet production would offset much of the slowdown on the commercial side, however, and that the company expected to move some employees now working on E-Jet production to the business jet line.

“We are working very hard to minimize the effect of this crisis on our manpower,” he said in response to a question about possible layoffs this year. “We see nothing significant at this point, but we’ll have to see how things develop over the year.

Meanwhile, Embraer will almost certainly see a further contraction of its overall backlog this year, added Kern. During last year’s fourth quarter the value of Embraer’s backlog shrunk to $20.9 billion from $21.6 billion at the end of the third quarter.

Last year the company set a new delivery record for itself by shipping 204 jets, 35 more than it delivered in 2007. Of those, E-Jet airliners accounted for 157, including a single executive-configured Embraer 175.

A 15- to 20-percent production drop would amount to between 126 and 133 E-Jets delivered in 2009. At the end of the year its firm order backlog for the four E-Jet variants totaled 386.

Back

Air New Zealand orders Airbus A320s to replace Boeing 737-300s November 03, 2009 Air New Zealand has ordered 14 Airbus A320s to replace its existing domestic fleet of 15 Boeing 737-300s. Valued at slightly more than $1... [more]
CFM International To Set Up Maintenance Training Center in India November 02, 2009 GMR Hyderabad International Airport Ltd. (GHIAL), has signed an agreement with CFM International to establish a new CFM56 maintenance training... [more]
Boeing To Place Second 787 Assembly Line in North Charleston, S.C. October 29, 2009 Boeing announced yesterday that it will place its second final assembly line for the 787 Dreamliner in North Charleston, S.C., ending months of... [more]
Boeing Decision on Second 787 Line Imminent October 21, 2009 Boeing will reveal the location of its planned second final assembly line for the 787 “over the next couple of weeks,” CEO James McNerney said... [more]
Japan Joins Green Asia and Pacific Aviation Partnership October 13, 2009 Japan has become the latest partner in the Asia and Pacific Initiative to Reduce Emissions (Aspire), joining the FAA, Airservices Australia and... [more]