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Friday, June 8, 2007
Greater Range for Smaller Embraers Places Pressure on Earlier Variants
The introduction of new derivatives of the Embraer (ERJ) E-170 and E-175 may increase the pressure on values of standard versions. The appetite for longer range and improved performance is ever present from operators. The modern regional jet market is now dominated by a wide range of variants. The Bombardier (BBD) CRJ-200 has been produced as the CRJ-200ER, CRJ-200LR, CRJ-440 while Embraer has delivered the ERJ-145ER, ERJ-145LR, ERJ-145XR as well as the ERJ-140. The larger regional jets are also produced in a myriad of designations, some reflecting the specific needs of individual operators.
This profusion of designations has the potential to dilute the product line and loosen its cohesion. A review of the fleet can see such a diversity of specification that assessing potential re-marketing targets can be problematical. Operators of one designation may find difficulty in operating a slightly different designation, potentially requiring rework. The E-190 and E-195 have been available as Standard models, as LRs and as ARs. The E-170 and E-175, already available as Standard and LR variants, are now also joined by the AR version. The AR version of the E-170 and E-175 sees a near 10 percent improvement in payload/range capability facilitated by a higher MTOW. However, to achieve the higher weight, some changes are needed to the structure. These minor alterations include the reinforcing of the fuselage. A higher MTOW can translate into higher navigation and airport charges such than an operator of an E-170 Standard may end up paying for unwanted additional weight if it seeks to acquire used E-170ARs. The backlog of E-170s numbers only 30 with 130 already in service. Of the 99 E-175s ordered, 70 remain to be delivered.
Embraer anticipates that demand for the AR version will be more from the U.S. although it is noted that the COPA, Royal Jordanian and Air Canada have ordered AR versions of the larger Embraer regional jets. The preference for the greater performance of the AR may mean that customers may at least seek to build in the structural changes that will allow an upgrade from the LR to the AR at some later date. The cost of the AR designation versus the LR is estimated to approximate $400,000 at list prices.
This profusion of designations has the potential to dilute the product line and loosen its cohesion. A review of the fleet can see such a diversity of specification that assessing potential re-marketing targets can be problematical. Operators of one designation may find difficulty in operating a slightly different designation, potentially requiring rework. The E-190 and E-195 have been available as Standard models, as LRs and as ARs. The E-170 and E-175, already available as Standard and LR variants, are now also joined by the AR version. The AR version of the E-170 and E-175 sees a near 10 percent improvement in payload/range capability facilitated by a higher MTOW. However, to achieve the higher weight, some changes are needed to the structure. These minor alterations include the reinforcing of the fuselage. A higher MTOW can translate into higher navigation and airport charges such than an operator of an E-170 Standard may end up paying for unwanted additional weight if it seeks to acquire used E-170ARs. The backlog of E-170s numbers only 30 with 130 already in service. Of the 99 E-175s ordered, 70 remain to be delivered.
Embraer anticipates that demand for the AR version will be more from the U.S. although it is noted that the COPA, Royal Jordanian and Air Canada have ordered AR versions of the larger Embraer regional jets. The preference for the greater performance of the AR may mean that customers may at least seek to build in the structural changes that will allow an upgrade from the LR to the AR at some later date. The cost of the AR designation versus the LR is estimated to approximate $400,000 at list prices.

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