A new report released by Forecast International says that Embraer will collect 40.8 percent of the projected $99.7 billion in sales of regional aircraft over the next 10 years, despite the lack of a turboprop in its existing product line. The Newtown, Conn.-based aerospace market research firm also predicts that Bombardier will take a 33.2-percent share over the next decade, while turboprop manufacturer ATR secures 7 percent.
Régional Compagnie Aérienne Européenne
Embraer recently named the Jet Aviation maintenance facilities in Bedford/Boston, Dallas and Teterboro, N.J., authorized service centers for the Legacy. Jet Aviation’s global maintenance network now includes a total of six Embraer Legacy service centers, with additional locations in Palm Beach, Fla; Dusseldorf, Germany; and London Biggin Hill, UK.
No one said it would be easy, but Embraer seems to have hit its stride after struggling early on to meet development and certification targets for its new four-airplane series of commercial jets.
Swiss International Air Lines last month announced another restructuring program that will shrink its regional fleet by at least 13 aircraft and its staffing by 800 to 1,000 positions over the next 18 months.
To ensure a supply of feeder traffic into its Zurich hub, Swiss plans to extend its code-share agreements with regional airlines, as it has done with Cirrus Airlines on its Lugano-Zurich link.
A U.S. bankruptcy court has approved a new financing deal between US Airways and Embraer, Bombardier and DVB Bank to allow the airline to start taking regional jet deliveries for the first time since it filed for Chapter 11 protection in September last year.
Continental Airlines and Brazil’s Embraer last month agreed to defer deliveries on 60 fifty-seat ERJ-145XRs jets by as much as two years, sending stock prices of both companies sharply downward. According to the new schedule, Embraer will deliver to ExpressJet 36 aircraft instead of 48 in 2003 and 21 aircraft instead of 36 in 2004.
Embraer collected firm orders for 20 E-Jets from two customers in the Middle East and Africa during last month’s Dubai Airshow, raising its profile still further in a region where it has dominated a budding market for regional jets.
In the lexicon of regional airline training, European carriers confront a classic story line. As regional jets reached the market in the early 1990s, training facilities couldn’t meet the needs of launch customers. As demand increased, training centers began adding equipment, alleviating the problem to a large degree.
Switzerland’s Crossair has frozen all hiring for an undetermined period, redoubled efforts to attract more business passengers, reduced frequencies on a number of marginal routes and moved smaller airplanes to others as the regional airline attempts to reverse one of the most difficult financial periods in its illustrious history.
As the global economy slows and sales of current-generation regional jets reach a plateau, new designs conceived during the height of the regional-jet spending spree stand ready to vie for market acceptance at a time when ambivalence prevails throughout the industry.