PAUL LEWIS / WASHINGTON DC
Launch customer for 70-seater set to put back delivery of 20 aircraft as it battles to restructure regional operations
Embraer is again having to negotiate revised delivery schedules for 170 launch customer Swiss International Air Lines. Swiss wants to delay the entry into service of 20 of the new aircraft in the face of reduced operations and cuts to its fleet of smaller 50-seat regional jets and turboprops.
Meanwhile, on a positive note, International Lease Finance (ILFC) is signalling renewed interest in the Brazilian aircraft.
Swiss last year reached an agreement with Embraer to halve its original planned deliveries for 2003 from eight to four 170s and trim the following year's total from 12 to eight aircraft. The airline is now seeking to further streamline its deliveries, but no details have been released. The first aircraft was due for delivery in late August, but according to Flight International's sister on-line service Air Transport Intelligence, Swiss chief executive André Dosé has warned that "first delivery is not as we had planned".
With Alitalia due to receive the second aircraft only a few days after Swiss, this could mean the Italian carrier will put the 170 into service first. Swiss has ordered 30 170s and a similar number of larger 195s. It is unclear what effect these delayed deliveries will have on overall output. Reconfiguring Swiss 170s for other carriers will be complicated by their unique design which features a ventral speed brake for steep approaches.
Embraer plans to produce a total of 136 aircraft this year, of which 16-18 will be the new 170 for Swiss, Alitalia and leasing company GE Capital Aviation Services.
Embraer 170 production is planned to increase to 45-50 aircraft in 2004 against the company's overall output of 140 aircraft, but the manufacturer warns that it is "constantly monitoring the airline industry scenario".
According to a recent interview with ILFC chief executive Steve Hazy published in Flight International's sister magazine Airline Business, ILFC is again looking at regional jets, The company had been on the verge of placing a large order for ERJ-145s in mid-2001 before pulling out as the result of market uncertainties. The company this time is looking at the larger 170, which makes for a better economic model than the 37-/50-seat ERJ-135/145.
Source: Flight International
