Although the demand for the 50-seat regional jet is tapering off, it was the big seller last year. In 2004, three manufacturers produced and delivered 191 50-seat RJs, according to data analyzed by BACK Aviation Solutions for Regional Aviation News. BACK compiled the 12-month delivery data from Bombardier...
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Although the demand for the 50-seat regional jet is tapering off, it was the big seller last year.
In 2004, three manufacturers produced and delivered 191 50-seat RJs, according to data analyzed by BACK Aviation Solutions for Regional Aviation News. BACK compiled the 12-month delivery data from Bombardier [BBD], Embraer [ERJ], AvCraft and the Chinese joint venture, Harbin/Embraer, to create a statistical picture of 2004's RJ activity.
Bombardier had 53 percent of the market with the delivery of 170 airplanes. The Canadian company delivered 104 50-seaters, 51 70-seaters and 15 of its 86 passenger jets. Embraer had 44 percent of the market with the delivery of 140 planes. The Brazilian company delivered 84 50-seaters and 11 of its smaller 40-seat planes. It also delivered the first 45 of its new 70-seat class.
New to the 2004 sales picture was Harbin/Embraer. The first of the Chinese version of the ERJ 145 rolled off the assembly line last spring for the Harbin/Embraer joint venture and these planes were delivered to Chinese airlines. AvCraft last year continued to deliver previously built Dornier 328Jets that it acquired from the Fairchild Dornier bankruptcy estate. The Virginia company last year restarted the Dornier production line in Germany. It will deliver five planes that were partially built when Fairchild shut down production and it has begun building new 32-seat 328Jets.
"I am surprised to see that Canadair (Bombardier) had more deliveries in 2004 than Embraer," said BACK analyst John Weber. "There are more orders for Embraer than Canadair, but these deliveries are previous orders. Canadair outpaced Embraer in deliveries."
The first of the Embraer 170s were delivered in March to Lot Polish Airlines; however, the plane was to have begun deliveries in November 2003.
In future years, Embraer will be building more large RJs than smaller ones. According to its fourth quarter report, its largest back order is now for the Embraer 190, a 100- passenger plane. It has 155 on firm back order. On the other hand, it only has 66 back orders for the 50-seat ERJ 145. Last fall, Bombardier projected that it would build 77 of its CRJ 700 and CRJ 900 models and 68 of its 50-seat CRJ 200 series (CRAN, Oct. 18, 2004).
The U.S. market continues to be the largest market for RJs. US Airways [UAIRQ] took delivery of 55 RJs last year from both Embraer and Bombardier for its three regional units. However, the deliveries stopped in September after the carrier again filed for bankruptcy. It is also evident from the data that US Airways' troubles and cancellations of 50-seat RJ orders by several carriers impacted the fall production schedule at both Embraer and Bombardier.
While US Airways took the largest delivery, Pinnacle Airlines [PNCL] took delivery of the largest order of one type of plane - it received 39 CRJ 200s. The largest foreign deliveries were seven CRJ 200s each to Air Canada Jazz and Spain's Air Nostrum.
Last year continued to build on the rebound from the 2002 slump in net RJ orders. There were 274 net orders up from 215 ordered in 2003. Impacted by the Sept. 11 terrorist attacks and the economic downturn, regional carriers in 2002 canceled more planes than they ordered.
"The sales look healthy," Weber said. "It is a great improvement over 2002."
While 2000 was the peak for RJ sales, last year's sales still fell short of the 292 sold in 1997. Weber declined to predict how many RJs will be sold this year.
Both Bombardier and Embraer are projecting that each will deliver 145 RJs in 2005.
>>Contacts: John Weber and Frederick Roe, BACK Aviation, (203) 752-2000.<<