E190-E2.
The 2Q16 main highlight was the first flight of the E190-E2, the first model of the second generation of the E-Jets family of commercial jets.
SAO JOSE DOS CAMPOS, BRAZIL – During the second quarter of 2016 (2Q16), Embraer delivered 26 jets to the commercial aviation market and the same number to the business aviation market, of which 23 were light jets and 3 were large jets. On June 30, Embraer’s firm order backlog totaled USD 21.9 billion.
PINAKAS
The 2Q16 main highlight was the first flight of the E190-E2, the first model of the second generation of the E-Jets family of commercial jets. The flight occurred on May 23, just three months after the E190-E2 made its public debut at a rollout ceremony at the factory in late February, and before the date originally scheduled.
Also during the quarter, Embraer and Horizon Air signed a firm order for 30 E175 jets, with options for another 33 aircraft of the same model. The value of the contract is USD 2.8 billion, based on current list prices, if all the options are exercised.
Other highlights included the debut of the E190 jet in Japan with J-AIR, a subsidiary of leading carrier Japan Airlines, bringing the number of E-Jets operating across Japan to 28, and the EJets debut in Portugal, with TAP, under the TAP Express brand.
In business aviation, the main highlight was the deal with Across, Mexico’s premium business aviation services provider, which signed a firm order for 23 business jets. The contract comprises the purchase of eight Legacy 500, eight Phenom 300 and seven Phenom 100E jets, with an estimated value of over USD 260 million at current list prices.
|
Deliveries by Segment |
2Q16 |
2016 |
|
Commercial Aviation |
26 |
47 |
|
EMBRAER 175 (E175) |
21 |
40 |
|
EMBRAER 190 (E190) |
4 |
4 |
|
EMBRAER 195 (E195) |
1 |
3 |
|
Executive Aviation |
26* |
49 |
|
Light jets |
23 |
35 |
|
Large jets |
3 |
14 |
|
TOTAL |
52 |
96 |
* 8 Phenom 100E, 15 Phenom 300, 3 Legacy 500
Embraer Projects Market Demand for 6,400 New Jet Deliveries in the 70-130+ Seat Segment
Embraer has also released yesterday, at the Farnborough Airshow, its 2016-2035 Market Outlook, which details forecasted deliveries of new aircraft over the next 20 years. The company projects market demand for 6,400 new jets in the 70-130+ seat capacity category (2,300 units in the 70-90 seat segment and 4,100 units in the 90-130+ seat segment), worth USD 300 billion, by 2035.
The global 70-130+ seat jet fleet in service will increase from 2,670 aircraft in 2015 to 6,690 by 2035, the fastest growing segment among all aircraft seat capacities. Market growth will drive 63% of total demand and the remaining 37% will be delivered to replace ageing aircraft.
70-130+ Seat Jet Deliveries by Region
|
Region |
Deliveries |
Share |
|
North America |
2,020 |
31% |
|
Asia Pacific |
1,690 |
26% |
|
Europe |
1,160 |
18% |
|
Latin America |
690 |
11% |
|
CIS |
380 |
6% |
|
Africa |
230 |
4% |
|
Middle East |
230 |
4% |
|
World (2016-2035) |
6,400 |
System-wide demand for air transport – measured in revenue-passenger kilometers (RPKs) – is expected to grow on average at 4.7% annually by 2035, fueled by stronger domestic demand in Advanced Economies and improvements in the macro environment in a number of distressed economies in Emerging Markets.
While region-specific outlooks may vary considerably, globally, the prospect for growth remains bright over the next 20 years driven by a gradual move from a share-driven market strategy to one of disciplined capacity growth with a commitment to strong earnings and return on invested capital.
Oil price will continue to play an important role in the evolution of air passenger traffic and the deployment of aircraft capacity in the coming years. “Apart from the obvious near-term positive effect on airline balance sheets, the low price of oil may exacerbate the overcapacity problem by tempting airlines to stimulate demand with fuel cost pass-through. Greater control in matching aircraft capacity to market demand will be an ever-present strategy to keep revenues ahead of costs over the long run”, said John Slattery, President & CEO, Embraer Commercial Aviation.
Sound financial performance via higher profits and strong non-fuel cost discipline is one of the main pillars to long-term sustainability. Right-sized aircraft call for a new, smarter approach that maximizes opportunities and optimizes revenues and returns with a more prudent solution to seek out untapped opportunities and to increase capacity and flight frequency, while preserving unit revenues.
“The E-Jets lie at the heart of the 70-130+ seat segment. As the most efficient family of aircraft in the segment, they are perfectly positioned to maximize profitability for both airlines and leasing companies”, Slattery said.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
