Brazilian manufacturer consolidates corporate-aviation activity and moves towards purpose-designed jet launch
Embraer will introduce the senior executive selected to head its corporate aviation unit at this week's LABACE show in Sao Paulo, as the Brazilian manufacturer moves to increase its presence in the business jet market.
The company is consolidating its corporate-aviation activity "under a single roof" to increase its focus on the market, says Fred Curado, executive vice-president, civil aviation market. "Today it is a fragmented operation, with a lot of activity embedded in the airline operation. We are establishing a strong leadership more concentrated on corporate aircraft."
Better known for regional jets, but having gained experience of the corporate aviation market over the past three years with the Legacy derivative of its ERJ-135, Embraer is moving towards the launch of its first purpose-designed business jet, now in the concept design stage (Flight International, 18-24 May 2004).
"There is a big market analysis and advanced engineering effort under way towards evaluating the new platform," says Curado. "It will be a family of products – whether two or three we don't know."
Whatever Embraer launches will be at the lower end of the market, below the super mid-size Legacy. "We will not go bigger than the Legacy at this stage," says Curado. "The pressure in the market is from the bottom up. We are looking at the entry-level part."
Embraer has first to convince itself that there is a large enough market for a new entry-level jet. "The first question is, is there a market?" says Curado. "The private owner market is there, but the air-taxi market is much more challenging. We are being very cautious in analysing that."
The company must also build the business case for a new aircraft. As well as ensuring adequate return on investment, Curado says, Embraer must come up with a design for the price-sensitive entry-level market that provides sufficient value to the customer to guarantee the manufacturer market share in a competitive sector. "We have to translate this into a business plan," he says.
GRAHAM WARWICK/WASHINGTON DC
Source: Flight International
