Embraer seeks larger executive jet market

• Tweet

RIO DE JANEIRO, Feb. 26 (UPI) -- Brazilian aircraft maker Embraer is aiming to expand its share of an international executive market, which is seeing more players than a decade earlier.

Competition in the business jet market is growing as manufacturers realize they can make up in Asia for losses suffered due to an aviation procurement downturn in Europe and North America.

Asian Sky Group said in a report business jet fleets in China, Hong Kong and Taiwan grew 40 percent in 2012 and demand for executive aircraft remains strong.

Embraer sees its growing share of the market as a timely entry into other sectors, including defense and tactical transport, where the manufacturer is developing capacity in direct competition to North American, European and Russian suppliers.

This week Embraer will be showing its ultra-large Lineage 1000 executive jet to prospective Asian customers amid competition from U.S., Canadian and European planemakers.

This year's Australian International Airshow and Aerospace and Defense Exposition at Geelong, Victoria, has drawn buyers and sellers hopeful of deals in a high-spending East Asian market. The event opened Tuesday and will continue through March 3.

Embraer said it will be putting on static display its Phenom 100 and super-midsize Legacy 600 jets at the exhibition.

Embraer's executive jets division says it is the only business jet manufacturer to produce a full range of aircraft solutions from the entry-level Phenom 100 to the ultra-large Lineage 1000.

The company has set up a field support representative unit in Australia to deal with customers in the country and surrounding area.

A 10-year forecast cited by the manufacturer says the Asia Pacific region is expected to account for about 10 percent of the global business aviation market in all makes and models. The market share is estimated to be worth $15 billion-$20 billion.

The company said it delivered 105 commercial and 99 executive jets in 2011, the last complete annual figures released.

Light jet deliveries are expected to rise from 77 in 2012 to 80-90 Phenoms, with some of the regular clients expected to order more aircraft.

Embraer also plans to boost business jet deliveries to 105-120, including first deliveries of the Legacy 500, due 2014.

The Legacy 500, currently going through its initial phases of the flight test program is the first Embraer aircraft to incorporate a fully integrated, closed-loop, fly-by-wire flight control system.

Embraer's large jet deliveries are forecast to increase from 22 in 2012 to 25-30 in 2013. The Brazilian manufacturer's executive aviation division is forecast to provide one-quarter of all revenues at around $1.4 billion-$1.6 billion.