Embraer secures more orders for executive jets

June 19, 2013 at 12:49 PM
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SAO JOSE DOS CAMPOS, Brazil, June 19 (UPI) -- Brazilian aircraft maker Embraer hopes to continue building up its sales of private and regional jets at the same time as it expands capacity in defense, security and tactical transport.

The aviation giant secured sales of more than $9 billion at the Paris Air Show and expects to sign more contacts in follow-up negotiations.

Embraer has headquarters in Sao Jose dos Campos, about 60 miles from Sao Paolo.

The plane maker has been able to compete on cost, easier financial terms and hassle-free supplies to emerging markets without requiring parliamentary approvals for defense-related inventories, a major issue for exporters from the United States and elsewhere.

Business growth in the newly industrializing economies of Asia, Africa and Latin America has created a niche for Embraer's e-jets and placed it directly in competition with Bombardier of Canada and other rivals, company data indicated.

Bombardier officials say they are not too concerned and there's enough demand to absorb aircraft from both manufacturers. Bombardier has set its sights on building a presence in China but has not yet received any Chinese orders. Embraer already has forged links with Chinese state and private aviation industries.

The next generation e-jets, due to roll out starting in 2018, will seat between 88 and 132 passengers in a single-class layout, the Toronto Star said. The larger E195-E2 would be in direct competition with the Bombardier's CS100 on a seat capacity level and will use engine technology offering similar operational costs, the Star said.

Embraer has plans to invest $1.7 billion to make its E-Jet family more fuel-efficient and competitive with other aircraft offering similar features.

In April Embraer Executive Jets announced a deal for a Lineage 1000 ultra-large executive jet with a previously undisclosed Chinese customer at the 2013 Asian Business Aviation Conference and Exhibition in Shanghai.

The deal raised Embraer Executive Jets' overall order book in China to 29.

The Lineage 1000 is the flagship of Embraer Executive Jets' seven-aircraft portfolio and entered service in 2009. It is equipped with an advanced avionics suite, auto-throttle and a fly-by-wire flight control system, which provide pilots a highly intuitive and professional cockpit for safe and smooth trips.

Embraer says Lineage 1000 is the only business jet in its category providing for as many as 19 passengers with five distinct and spacious cabin zones. The jet also has the largest, inflight-accessible baggage compartment of any executive jet.

The Lineage 1000's range of 4,400 miles gives Embraer an edge, affording such nonstop flights as Beijing to Copenhagen or Shanghai to Anchorage, with eight passengers and fuel reserves.

Embraer has emerged as a major rival to plane makers in North America and Europe in a whole range of other civilian and military aviation sectors.

The company is developing tactical transport aircraft to compete against Lockheed Martin's aged C-130 and its update C-130J and hopes to earn at least $50 billion from its cheaper alternative, the KC-390.

The KC-390 will be the biggest airplane Embraer has ever built. Embraer Defense and Security Chief Executive Officer Luiz Aguiar indicated the company was betting on market growth amid existing estimates up to 700 tactical transport are needed worldwide, either as substitutes for the ageing C-130 Hercules or as new additions to inventories.

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