A key success for Embraer Executive Jets (EEJ) has been the level of flight activity for its fleet in recent months. According to the Brazilian company, its aircraft outflew its main competitors in the last few months of 2013, based on available statistics from the U.S. Federal Aviation Administration and Eurocontrol.
The impending service entry of Embraer’s Legacy 450s and 500s is set to complete the Brazilian manufacturer’s product portfolio–a sort of bridge of options connecting the Phenom 100 and 300 light jets with the larger Legacy 650 and Lineage 1000 models. During a pre-EBACE press visit to its São José dos Campos headquarters last month AIN found Embraer’s management in a confident mood, despite the fact that the overall fortunes of the business aviation market still seem somewhat mixed.
The world’s leading business jet manufacturers posted financial results for the first quarter of 2014 in the weeks leading up to this year’s EBACE show. Overall, the latest numbers are somewhat encouraging in the context of the industry’s slow recovery but there are significant variations in the details. Here AIN provides a summary of the main conclusions.
Bombardier Aerospace: Bizjet Deliveries Up, Backlog Grows
The business jet industry continued to build on its delivery momentum from last year, according to first-quarter delivery statistics released today by the General Aviation Manufacturers Association (GAMA). OEMs handed over 154 business jets worldwide in the first three months, a 19.4-percent increase over the 129 delivered in the first quarter of last year.
Embraer’s revenues in the quarter rose by $157 million, to $1.242 billion, while profits climbed from $30 million in the first quarter of 2013 to $110.6 million in the same period this year. At its Executive Jets division, first-quarter revenue soared to $267.4 million, up from $175.3 million a year ago. Embraer delivered 20 executive jets (17 light and three large) in the quarter, compared with 12 (eight light, four large) in the same period last year.
Kansas City, Mo.-based fractional provider Executive AirShare saw its customer count rise last year by 50, to 185, a 37-percent increase. According to president and CEO Keith Plumb, the regional fractional provider–which serves shareowners in Kansas City; Wichita; Tulsa and Oklahoma City, Okla.; Dallas/Fort Worth, Houston, Austin and San Antonio, Texas; and Buffalo, N.Y–has “recorded four consecutive years of double-digit growth, achieved profitability and established a reputation for delivering the highest quality service.”
Embraer delivered 20 business jets during the first quarter of this year, compared with just 12 during the same period a year earlier. The 66-percent increase in deliveries in the company’s executive jet business accompanied an increase in its overall, firm-order backlog to $19.2 billion from $18.2 billion during the quarter, driven mainly by a firm order for 50 E2 E-Jets to India’s Air Costa during the Singapore Airshow in February.
Embraer delivered 20 business jets during the first quarter of this year, compared with just 12 during the same period a year earlier.
The 66-percent increase in deliveries in the company’s executive jet business accompanied an increase in its overall, firm-order backlog from $18.2 billion to $19.2 billion during the quarter, driven mainly by a firm for 50 E2 E-Jets to India’s Air Costa during February’s Singapore Airshow. The business jet sales tally included three Phenom 100s, 14 Phenom 300s, two Legacy 650s and a single Lineage 1000.
China’s commercial aviation manufacturing sector is challenged to match Boeing, Airbus, Bombardier and Embraer in building large passenger jets. But it faces brighter prospects in building general aviation and business aircraft, according to a Rand study released last month.
The People’s Republic of China government has done much to make China more “executive aviation friendly,” according to Embraer Executive Jets. But obstacles remain to business aviation growth, said the Brazilian manufacturer.