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Monday, July 24, 2006

Embraer Reports Second Quarter Deliveries; ERJ News Notes

Embraer (ERJ) reported that, out of the total 145 aircraft it expects to deliver in 2006, the company delivered 63 in the first half of 2006. It also reported that South African Airlink canceled its contract for the ERJ 135 in favor of an order for two ERJ 170s. It expects to deliver 150 commercial, executive and defense/government aircraft in 2007.

The company announced new high-capacity versions of its EJets, to afford operators more revenue potential. Embraer added two seats each to the ERJ 170 and 175, increasing their capacity to 80 and 88 seats, respectively. It is increasing the capacity of the 190 from 108 to 114 seats and the 195 from 118 seats to 122. No structural changes or new testing will be required for the increased-capacity versions

"We are talking mainly about low-cost and regional carrier applications," said Luiz S鲧io Chiessi, Embraer vice president, market intelligence - airline market. "For an operator choosing a 114-seat EMBRAER 190, for instance, the revenue potential can be increased by up to 14 percent when compared to the standard all-economy version, 32-inch pitch (81 cm), 100-seat configuration."

The company also announced fuel burn for the 190 has improved by three percent owing to enhancements in the manufacturing process that reduced drag and were implemented in the assembly line since the very first serial production aircraft. With 20-plus 190s in operation, Embraer is now able to more accurately confirm the final fuel burn numbers for the production aircraft and will revise the related aircraft manuals to reflect the lower fuel consumption. Embraer said the savings could reach $1 million per aircraft over 20 years, based on 3,000 flight hours per year and $2 per gallon fuel costs. Fuel is now at about $2.12.

Just two weeks after it gained certification from Brazilian authorities, the ERJ 195 was certified by European Aviation Safety Agency (EASA). (RAN, July 17, p.6) The latest certification paves the way for deliveries to Flybe and other customers. Embraer reported there are over 160 E-Jets operating worldwide as of June 30.

The company also launched its formal certification campaign allowing the ERJ 190 to operate from London City Airport (LCY). Certification is expected at the end of 2008. Currently, the ERJ 170 is undergoing tests and is scheduled to receive certification for the steep approach necessary at LCY at the end of this year.

 

 

Embraer Deliveries

 

Deliveries by Segment * 2Q06 1H06
Commercial Aviation
ERJ 145
5
9
EMBRAER 170
9 (1)
17 (2)
EMBRAER 175
4
5
EMBRAER 190
12
20
Total Commercial Aviation
30
51
Executive Aviation
Legacy 600
5
9
Total Executive Aviation
5
9
Defense and Government **
EMBRAER 170
-
2
EMBRAER 190
1
1
Total Defense Market
1
3
Total
36
63
*Units identified in parentheses were aircraft delivered under operating leases ** Includes only deliveries of executive jets configured for authority transportation and aircraft delivered to state-run airlines

 

 

Embraer's order book by product at June 30, 2006
Aircraft Type Firm Orders Options Deliveries Firm Order Backlog
ERJ 145 Family
ERJ 135
108
2
108
-
ERJ 140
74
-
74
-
ERJ 145
682
157
676
6
Total ERJ 145 Family
864
159
858
6
EMBRAER 170/190 Family
EMBRAER 170
144
116
111
33
EMBRAER 175
22
-
19
3
EMBRAER 190
253
286
33
220
EMBRAER 195
36
40
-
36
Total EMBRAER 170/190 Family
455
442
163
292
Total
1319
601
1021
298
Note: Backlog includes orders for the Defense segment placed by state-run airlines (Satena and TAME).
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