Embraer’s drive to become a major player in the business aviation market is gathering pace, with sales of the super mid-size Legacy growing steadily as its new very light and light jets take shape.
“Executive aviation is the path for growth for Embraer, and not just products but also service solutions,” says Louis Carlos Affonso, senior vice-president and head of the new Embraer Executive Jets division making its debut at the show.
The Brazilian manufacturer is aiming for a significant share of a business aviation market it estimates was worth $23.4 billion last year. Only $10.5 billion of that was aircraft sales, “but it is bigger than the commercial market” in which Embraer plays with its ERJ-145 and E-170/190 regional-jet families, Affonso says.
Embraer forecasts deliveries of 9,680 business jets worth $144 billion over the 10 years from 2006 to 2016. Of these, 2,515 aircraft – 26% of deliveries and 4% of value – are expected to be very lights jets (VLJ) and 1,755 – 18% of deliveries and 8% of value – light jets. “Our view is optimistic for the next 10 years,” says Affonso.
Although Embraer believes an air-taxi market for 2,500-3,000 VLJs will emerge, these are not included in its estimate. Of the forecast deliveries, 72% are expected to be to customers in North America and the Caribbean; 17% to Europe, Africa and the Middle East; with Brazil and Mexico accounting for most of the remaining 11%.
The first of its all-new business jets, Embraer’s VLJ is just finishing the joint definition phase. Some 300-350 engineers, including those from risk-sharing suppliers, have been co-located at San Jose dos Campos, working to meet “very aggressive price and operating cost targets”, says Affonso.
First flight is planned for early in 2007. Meanwhile, joint definition of the larger light jet, which shares a common cockpit and cabin cross-section with the VLJ, will begin early next year, leading to a first flight early in 2008. The $2.75 million VLJ is to enter service in mid-2008, followed a year later by the $6.65 million light jet.
Embraer is already assembling its “integrated solutions” for in-service support of the new business jets, as well as the Legacy and other planned products. “Our vision is to be regarded as one of the top three providers of service and support within five years,” says Affonso.
With 60 aircraft now in service, the company is moving to improve the training and service available worldwide for the Legacy. By the time the VLJ is delivered, the goal is to have at least five service centers in North America and four in Europe.
Source: Flight Daily News
