Brazil’s Embraer Has Slight Slowdown in Delivery Pace

    Embraer 170

    Embraer 170 Brazilian aircraft maker Embraer closed out the first quarter of 2010 (1Q10) having delivered 41 jets, one more than the same period in 2009. The airline market received 21 of this total, 19 went to executive aviation, and one to the defense segment, as detailed in the table below.

    On March 31, 2010, the firm order backlog totaled US$ 16 billion, or a reduction of 3.6% of the US$ 16.6 billion of the previous quarter.

    Deliveries by Segment       1Q10

    Commercial Aviation           21
    ERJ 145                       1
    Embraer 170                   3 (2)*
    Embraer 175                   1
    Embraer 190                   12
    Embraer 195                    2

    Executive Aviation             19
    Phenom 100                     16
    Phenom 300                      1
    Legacy 600                      2

    Defense                         1
    Legacy 600                      1

    TOTAL                           41
    * Numbers in parentheses represent
    operational leasing

    During the first three months of the year, the family of Embraer E-Jet operators took in two more members. Gulf Air, from the Kingdom of Bahrain, received two Embraer 170 jets through ECC Leasing, a wholly owned subsidiary of Embraer, and Libya’s Petro Air took another two airplanes of the same model.

    As set forth contractually, US Airways chose not to confirm five firm orders of the original 37 for the Embraer 190. By the end of 1Q10, the airline had received 25 airplanes of this model.

    On March 31, 2010, Embraer’s firm order backlog for the airline market is detailed, by product, in the following table.

    Firm                      Firm Order
    Aircraft Type                 Orders  Options  Deliveries  Backlog

    ERJ 145 Family
    ERJ 135                        108        –        108           –
    ERJ 140                         74        –         74           –
    ERJ 145                        708        –        701           7
    Total – ERJ 145 Family         890        –        883           7

    Embraer 170/190 Family
    Embraer 170                    191       48        175          16
    Embraer 175                    140      178        126          14
    Embraer 190                    443      383        275         168
    Embraer 195                     87       70         49          38
    Total -Embraer 170/190 Family  861      679        625         236

    TOTAL                           1,751   679      1,508         243
    —–                           —–      —      —–         —

    In the executive aviation segment, the development of the new midlight Legacy 450 and midsize Legacy 500 jets went ahead. The last quarter was marked by the consolidation of the production of the Phenom jets. In a little over a year, Embraer manufactured and delivered over 100 airplanes.

    In the defense area, Embraer continues to develop the KC-390 program in a partnership with the Brazilian Air Force. The production of the Super Tucano aircraft at Gavião Peixoto plant advances on schedule.

    The trainer and light attack airplane continues to be a best-seller, with a total of more than 170 firm orders, and operates in Brazil, Chile, Colombia, Ecuador, and the Dominican Republic.

    Embraer is the world’s largest manufacturer of commercial jets up to 120 seats, and one of Brazil’s leading exporters. Embraer’s headquarters are located in São José dos Campos, São Paulo, and it has offices, industrial operations and customer service facilities in Brazil, China, France, Portugal, Singapore, and the United States.

    Founded in 1969, the Company designs, develops, manufactures and sells aircraft for the commercial aviation, executive aviation, and defense segments. The Company also provides after sales support and services to customers worldwide. On March 31, 2010, Embraer had a workforce of 16,792 employees – not counting the employees of its partly owned subsidiaries – and its firm order backlog totaled US$ 16.0 billion.

    Austral

    The contract for the sale of 20 Embraer 190 jets to Austral Lineas Aereas, of Argentina, was finalized. The agreement was announced in May 2009, and was conditioned on fulfilling several requirements, which were finalized. From the 20 jets on order, three were already included in the firm order backlog of the first quarter of 2010, as “Undisclosed”.

    The Embraer 190 jets ordered by the Argentine airline are of the Advanced Range (AR) model, and can fly nonstop for 2,400 nautical miles (4,400 km).

    The passenger cabin configuration, with four seats per row, is very comfortable and will have a total of 96 seats divided into two classes: eight in the executive and 88 in the economy. Furthermore, all passengers will have a modern inflight entertainment system with individual monitors.

    Austral will use the aircraft mainly to substitute older jets on domestic routes, to increase current flight frequencies, and to serve new cities. The modern and comfortable E-Jets will allow the airline to fly any route within Argentina’s territory, nonstop.

    The Embraer 190 is one of four models of the Embraer 170/190 E-Jets family and entered operation in 2005. The customer base is comprised of 56 companies in 39 countries. With over 620 units in operation, these aircraft have transported 200 million passengers worldwide, says Embraer.

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