NBAA Watch – Embraer

A price increase on the Phenom 300, the opening of its Hartford service center and the broadening of its Executive Care program were all in the talking points for Embraer at last week’s National Business Aviation Association convention. At the static display its Phenom 100 and 300 made their debut in their first appearance outside of Brazil.

Embraer Ups Phenom 300 Price
Customers wanting a bargain on a Phenom 300 better act before October 31, when the company’s introductory price of $6.65 million expires in favor of a three percent increase that becomes effective November 1. The executive jet is already flying in the certification and maturity campaigns, and will be priced at $6.85 million.
“Since its launch, in May 2005, the Phenom 300 has enjoyed great market acceptance,
comprising one-third of the more than 800 Phenom jets on order,” said Luís Carlos Affonso, executive vice president, Executive Jets. “Even with this increase over the 2005 introductory price, the Phenom 300 continues to be attractive, as the best combination of comfort, performance, cabin space, and baggage volume in the light jet category.”
The first Phenom 300 performed its maiden flight on April 29 of this year, and has accumulated more than 100 test hours, to date. The second Phenom 300 flew on August 5, while the third and fourth aircraft are in the assembly and sub-assembly phases, respectively.
The first four jets will be used exclusively for certification and maturity campaigns, and two other airframes will be subjected to structural evaluations.
Last year, Embraer announced the extension of the Phenom 300 cabin by 14 inches (35 cm), without impacting either the performance or the price of the aircraft. The cabin extension enhances passenger space and comfort, and allows for additional layout configurations. The Phenom 300 is designed to deliver the highest speed in its category and the lowest operating cost, with outstanding hot-and-high performance, according to the company.
Meanwhile, Embraer is investing over $100 million in its executive jets customer support organization and network. By the end of 2008, customers will have 45 service centers available to them, worldwide.

Embraer Opens Hartford Facility
Embraer opened its service center at Bradley International Airport, today, in Windsor Locks, Conn, just weeks after its Mesa, Ariz. service center opened. The company has a third new service center set to open at Fort Lauderdale shortly.
These facilities are part of an investment of over $100 million in the infrastructure and organization necessary to support Embraer’s growing number of executive jets customers.
“Embraer’s decision to open these new company-owned and operated facilities, even before the first Phenom 100 jet is delivered, gives witness to our focus on supporting North American customers through 24 locations, in 18 States,” said Edson Carlos Mallaco, vice president, customer support and services, executive jets. “Around the globe, we are preparing a highly competitive network of 45 service centers that will deliver excellence to our growing customer base.”
The new centers, each with 47,700 square feet (4,431 square meters), are dedicated to full-service support for the company’s Phenom 100, Phenom 300, Legacy 450, Legacy 500, and Legacy 600 executive jets.
This Embraer facility is located in New England and, like the other service centers, consists of a hangar, workshops and office space built for an estimated cost of $10 million. The company expects to create approximately 60 jobs in the community over the next five years, and initial administrative personnel and mechanics have already hired. By the end of October, they will complete training for servicing the Phenom 100 model.
Partners in the Embraer project include the State of Connecticut, the Bradley International Airport Authority, and the Connecticut Department of Transportation (CDOT).
The Bradley facility will provide full-service aircraft care, including routine inspection, scheduled and unscheduled maintenance, and airframe, engine, avionics, and other systems repairs, 24/7 assistance, Aircraft On Ground (AOG) mobile rescue teams, and an inventory of expendable and repairable parts.
In addition to the three new facilities dedicated to executive jets, Embraer has a company owned service center in Nashville, which provides support for the its commercial EJets, as well as the Legacy 600 and Lineage 1000 executive jets.
Embraer’s service network in the U.S. consists of 24 locations and spans 18 States. By the end of 2008, the company will have seven wholly-owned (four in the U.S.) and 38 authorized service centers, worldwide.

Embraer, CAE Launches first Phenom Training
CAE and Embraer's training joint venture, Embraer CAE Training Services (ECTS) launched its first pilot and technical training programs for the Phenom 100 aircraft at CAE's facility in Dallas, Tex. This is a key milestone for the joint venture, said the two companies, which was established in October 2006 to provide pilot and ground crew training to Embraer customers of the Phenom 100 and Phenom 300 jets.
The program's first technical training course, which is instructor-led and computer-based, began in August, with additional courses underway and scheduled to take place on a regular basis. They may take place either at CAE's center in Dallas or on-site at customer facilities.
The first pilot training began in September, with additional courses also underway and scheduled to take place on a regular basis. The program includes up to 23 hours of computer-based training, followed by 40 hours of instructor-led ground school, involving Integrated Procedures Trainer (IPT) sessions, and approximately 32 simulator-hours based on a two-person crew.
To support the program, the world's first Phenom 100 full-flight simulator (FFS), built by CAE, is located at CAE's facility in Dallas. A second Phenom 100/300 FFS is scheduled to be deployed at CAE's Burgess Hill training center in the U.K., in the first quarter of 2009. ECTS plans to add a third Phenom 100 FFS, in the future, at a location in North America, yet to be defined.

New Order for Phenom 300
Embraer signed Executive AirShare, from Kansas City, Mo., for an expansion order for the Phenom 300 jet. The deal adds two firm orders to the customer's current backlog of four firm orders and four options for this model.
Executive AirShare, one of the largest regional fractional aircraft ownership companies in the U.S., also has firm orders for the Phenom 100 and had already doubled its order for the Phenom 300 jet in May 2008.
"We are proud of being a part of Executive AirShare's success by offering modern, comfortable and reliable products," said Ernest Edwards, vice president, marketing and sales USA, Canada, Mexico and the Caribbean - Executive Jets. "This additional order confirms, once again, the wide acceptance of our Phenom jets."
"Both Phenom aircraft offer the range, speed, comfort and payload that our customers are seeking," said Keith D. Plumb, Executive AirShare president and chief operating officer (COO). "Our shareowners are particularly excited about the progress Embraer is making toward certification of the Phenom 100 and the impressive flight testing performance of the Phenom 300."
The first Phenom 100 is scheduled to be delivered to Executive AirShare in the second quarter of 2009, while the Phenom 300 is expected for 2011. The company will be the only established fractional aircraft ownership to offer these two Embraer models. Executive AirShare's members have access to their aircraft for a given number of days per year rather than a strict number of annual flight-hours, as is the case with most similar companies.

Vibroair takes Embraer Biz Jets
Embraer and Vibroair Flugservice GmbH & Co. KG signed a contract during the NBAA convention for two Phenom 300, one Legacy 500, and one Legacy 600 executive jets. The Legacy 600 is scheduled for delivery in 2009, and is already included in Embraer's second quarter 2008 firm order backlog.
"We are honored to have our jets play a significant role in the expansion of Vibroair's premium service," said Colin Steven, vice president, marketing and sales - Europe, Africa and the Middle East, Executive Jets. "The entire portfolio of Embraer business jets is designed to satisfy the most demanding markets, delivering comfort, performance and high reliability."
The Legacy 600 will be dedicated to private charter operations in Europe, and will be based at Dusseldorf Airport.
"Vibroair has selected Embraer as its long-term business aircraft partner. Our Legacy 600 will be operated throughout Europe as a VIP aircraft, affording our customers comfortable trips in a very spacious cabin with the ultimate in onboard technology," said Michael Viehof, CEO of Vibroair. "We will continue to expand our operations with the addition of the comfortable new and innovative Phenom 300 and Legacy 500 jets."

Embraer Broadens Exec Care
Both the Phenom 100 and 300 are now included in Embraer’s Executive Care program (EEC) , affording customers fixed-cost maintenance support. Initially, the EEC program will offer coverage for the models in most of North America, South America and Europe.
“The EEC program has become such an important and popular part of the Legacy 600 ownership experience that we are now pleased to extend it to Phenom 100 and Phenom 300 customers, who will enjoy the same premium service and peace of mind, by meeting their needs and expectations immediately, as the jets enter service,” says Edson Carlos Mallaco, vice president, Customer Support and Services, Executive Jets.
EEC protects the customer’s investment in the aircraft by laying out a regular service plan that covers the entire jet for a fixed hourly fee per flight hour. The program fee is specific to each Embraer executive jet and is adjusted to the yearly usage level of the aircraft, contemplating both high and low usage operational profiles for the aircraft.
Embraer’s pre-negotiated contracts with service centers, logistics providers and parts suppliers make this program available. The Phenom jets’ engines are covered by Pratt & Whitney Canada’s ESP® (Eagle Service Plan).
As with the Legacy 600, the Phenom EEC program will offer a choice of coverage levels. The
standard module covers airplane parts from tip-to-tail, taking much of the guesswork and uncertainty out of aircraft ownership. The program covers all costs associated with shipping and insurance of serviceable parts that are replaced at normal maintenance intervals.
Under the Enhanced EEC module, the program also covers labor for scheduled and unscheduled maintenance, including the cost incurred when Embraer’s Mobile Recovery Services (MRS) are called into action in an Aircraft On Ground (AOG) situation. The comprehensive plan is unique when compared to any other pay-per-hour service plan offered in the market, said the company. In addition to the EEC, Embraer has component pool programs shared by a worldwide fleet, enabling the company to offer the lowest exchange costs, mitigating cost increases in parts, labor and unscheduled maintenance.