Embraer, which is already developing two new light jets, announced on the eve of the European Business Aviation Convention & Exhibition that starts tomorrow in Geneva, that it is breaking into the bizliner market with the launch of the Lineage 1000. The $40-million jet, derived from Embraer’s ERJ 190 regional airliner, is expected to enter service in 2008.
An increase in business jet sales and deliveries continued to bolster the aerospace arm of Bombardier, according to the Canadian manufacturer’s financial results for its first quarter that ended April 30. In the February to April period, Bombardier delivered 53 business jets, compared with 43 in the same period last year, a 23-percent increase.
Record numbers of orders last year indicated a short supply of available aircraft as the world’s airlines began to recover from the global recession of the early 2000s. This was good news for those with used aircraft on their hands–at least until most demand had been met, at which point placing remaining capacity became a challenge.
Canada’s Bombardier Aerospace (Hall 3 Stand D8) enters this Farnborough show with some critical questions to answer about the future of its regional airliner business. Operating under a cloud of speculation and conjecture since it announced its decision to shelve the once-heralded C Series project in January, the company continues to contemplate its next course of action.
When Embraer decided to enter the business jet market after the successful launch of a family of regional airliners in the 1990s, the company’s chief executive had a clear vision for the future. Mauricio Botelho–the man who led Embraer’s resurgence after the Brazilian government privatized the company in 1994–was determined that Embraer also be a significant force in the market for business jets, and not merely a niche player.
Bombardier Aerospace announced last month it will lay off another 1,330 employees as part of a plan to “realign” regional aircraft production rates with market demand. The adjustments will see production of the CRJ700 and CRJ900 cut from 65 to 50 next year and Q Series turboprop output increase from 50 to 65 as a result of a significant rise in Q400 deliveries.
As the industry gathers in Gothenburg for this year’s general assembly, the ERA will certainly lament the absence of one of its stalwart airline members from Scandinavia–even if its passengers have taken little notice.
The growing Russian market for business aircraft prompted western manufacturers to expand their presence at the MAKS airshow, held recently at Ramenskoye Aerodrome near Moscow.
It seems hard to reconcile the rather dark and anxious tone of this year’s Regional Airline Association convention with double-digit margins and record revenues. Listening to airline delegates speak at this year’s get-together, one got the distinct impression they knew something the rest of us didn’t. In fact, regional airlines have been waiting for the day the gravy train of guaranteed RJ profits derailed.
UK Corporate Jet Services, parent company of Southampton-based executive charter operator Club328, has purchased bankrupt regional aircraft manufacturer AvCraft Aerospace. The new owner will not be resuming aircraft production, but will instead run the former property of U.S. support and completions firm AvCraft Aviation as a support organization for existing Dornier 328 operators under the name 328 Support Services.