While other major manufacturers are struggling to find the right production organization or have spent years changing their minds about what product to launch next, Embraer has been quietly reaping the fruits of a sound management strategy, according to independent financial analysts.
Régional Compagnie Aérienne Européenne
Embraer is here at Farnborough exhibiting a Legacy 600 demonstrator and mock-ups of its new Phenom 300 and Lineage 1000 business jets. While the 10- to
16-seat Legacy 600 is currently its only executive jet in service, the Brazilian manufacturer is preparing to have a family of six business aircraft by 2013. Income from this market is projected to increase from the current 16 percent of the group’s revenues to 25 percent in 2010.
Certification setbacks have postponed Embraer’s plans to deliver the first Legacy business jet to launch customer Swift Aviation. The Phoenix-based charter company now hopes to take delivery of its first airplane by mid-December, immediately after Embraer gains its expected FAA approvals. The Brazilian manufacturer also plans to deliver a Legacy to an anonymous domestic customer around the same time.
Since mid-September, a French operator has been flying the first Embraer ERJ-135 dedicated to charter in Europe. The Chambéry-based firm feels it has filled a gap in charter capacity. The twinjet, registered F-GYPE, is operated by Hex’Air, a small airline whose sister company, executive charter operator Pan Européenne Air Service, markets it alongside its own business aircraft.
The whole idea of a business trip is to do some business, and that’s exactly what Embraer’s Legacy business jet did last month, when it first touched down on U.S. soil and rolled up to the NBAA static display on December 11.
In an unexpected turn of events, Midwest Express and Fairchild Dornier have resolved their dispute over the cancellation of the 428JET program, leading to a follow-on order for four 32-seat 328JETs and options for 10 of the high-wing regional jets for the Milwaukee-based carrier’s regional subsidiary, Skyway Airlines.
Embraer president and CEO Mauricio Botelho reflected on the events of September 11 and their subsequent effect on the world’s aerospace industry with a quote from Argentine-born Cuban revolutionary Ernesto “Che” Guevara. “We must be tough without losing tenderness,” said Botelho during a lavish dinner affair the evening before the October 29 rollout of the newly branded 70-seat Embraer 170 regional jet.
Brazilian certification of the Embraer Legacy is expected this month, following the prototype’s return from its European tour. Only “minor final details regarding interior systems” remain, according to Sam Hill, vice chairman of Embraer Aircraft Corp. of Fort Lauderdale, Fla., the Brazilian OEM’s U.S. marketing arm. First delivery to launch customer Swift Aviation is also expected this month.
A long-anticipated collaboration between Brazil’s Embraer and France’s ATR finally came to fruition in late June during the Paris Air Show, as the two regional aircraft builders teamed with Oracle and KPMG Consulting to create a new Internet-based customer-support network.
American Airlines’ absorption of TWA took a major step forward when the Dallas-based American signed a pair of new code-share agreements with TWExpress partners Trans States and Chautauqua Airlines. As part of the multi-year agreements, Indianapolis-based Chautauqua and St.