Embraer Sees Sales Rebound on US orders

Embraer aims to rebuild its depleted order backlog next year with two major new offerings -- a military cargo plane and a re-engined family of regional jets -- executives said.
With approval from its board of directors and a new engine supplier selected "within the next few months," Embraer plans to overhaul its E-Jet lineup, Paulo Cesar de Souza e Silva, head of Embraer's commercial aviation unit, told reporters.
The existing E-Jet family has made Embraer the world's largest regional jet maker, but Canada's Bombardier won a major order from Delta Air Lines last week, helping to steal the 2012 sales lead and reignite an historic rivalry.
Embraer hopes to regain the advantage with its next generation of E-Jets, offering a 15 percent boost in fuel efficiency. It is also betting on its defense unit to offset volatile cycles in the airline industry.
The company's KC-390 military tanker and cargo jet should have a price set next year, allowing clients to book firm orders, said Luiz Carlos Aguiar, head of the defense unit, which has grown faster than expected this year.
The defense division's outperformance has helped to offset cancelled commercial and private jet orders this year, and chief executive Frederico Curado said Embraer is close to meeting its 2012 revenue and profit margin targets.
"We hope to grow again in 2013, even if it isn't major growth," Curado said at a year-end event held by the company.
A lack of major regional jet orders drained Embraer's backlog, a pipeline of future revenue, to a six-year low in September, leading several analysts to suggest the company may have to cut back production next year.
Embraer has stuck with an outlook for stable regional jet output in 2013 if it can book new orders early in the year. Curado said the company expects to keep its payroll stable in 2013, after rising wages drove up production costs in recent years.
BIG AMERICAN ORDER AHEAD
The most likely candidate for a major order in coming months is American Airlines, Silva said, after its parent AMR negotiated a new labor deal allowing larger planes in its regional fleet.
Embraer is in preliminary talks with American Eagle, which can now fly more than 200 jets with up to 76 seats, Silva said, adding that the airline was likely to request formal bids from aircraft makers in coming weeks. Sales campaigns with US Airways and United also promise big orders, he said.
Silva said 2013 "is looking to be a better year from a sales perspective, as the big US airlines close deals to renew their fleets over the next 18 months."
The re-engined E-Jets could also boost sales in the second half, along with the new KC-390, although delivery of the new aircraft will have to wait until 2018 and 2015, respectively.
After Embraer revamps its E-Jet family, Silva said he could see the company developing a new aircraft with up to 150 seats entering service after 2025. He said such a development would depend on whether industry giants Boeing and Airbus opt to develop larger versions of their narrow-body airliners.
The Brazilian Air Force's investment in developing the KC-390 has already boosted Embraer's top line, helping the defense unit generate about USD$1 billion in revenue this year, above forecasts for USD$900 million to USD$950 million.
In February, Embraer forecast net revenue of USD$5.8 billion to USD$6.2 billion this year. The company updated its profitability outlook in July to reflect expectations that earnings before interest, taxes, depreciation and amortization, EBITDA, would equal between 12.5 percent and 13.5 percent of revenue.

Embraer Offers Tip-to-Tail coverage for Phenoms

Embraer Executive Jets has expanded its customer service and support solutions by launching the new Embraer Executive Care (EEC) Engine Add-On option, that will offer a nose-to-tail maintenance solution for Phenom jets, complementing the EEC and the Eagle Service^TM Plan (ESP^®) programs.

The new EEC Engine Add-On option helps Phenom 100 and Phenom 300 operators to streamline and simplify invoice and payment processes, addressing one of the customers’ main concerns.

“The EEC Engine Add On comes as we celebrate the 11^th anniversary of Embraer Executive Care maintenance program which now has almost 300 aircraft enrolled in the program,” said Edson Carlos Mallaco, Vice President, Customer Support & Services, Embraer Executive Jets. “It is the latest in our commitment to give our customers peace of mind.”

The new option covers scheduled line maintenance, which is currently not available in the engine maintenance plans.  This optional plan covers labor, shipping charges as well as expendable and consumable parts such as filters and o-rings associated with these tasks.  It also includes one desalination wash per engine per year during a scheduled aircraft maintenance visit.

Customers may get more details on the new EEC Engine Add-On option by contacting their regional EEC sales representative.

About EEC
 EEC is a comprehensive airframe maintenance support program designed to make budgeting and execution of maintenance costs on Embraer Executive Jets simple.  EEC is a five-year program that complements the standard warranty coverage, protecting customers from cost variations with a regular and predictable monthly payment.

About ESP

The ESP program consists of a number of optional engine maintenance budget plans for the operator of select P&WC engine models, where P&WC becomes responsible for expenses resulting from:

• Hot Section Inspection (HSI)/refurbishment
• Engine overhaul/refurbishment
• Basic unscheduled engine maintenance
• Basic unscheduled LRU/accessory maintenance
• Required product support improvements at engine shop visit

Legacy 500 First Flight

After a brutal few years, Embraer has finally made it passed a huge milestone. On November 27th the Legacy 500 made its first maiden flight and the manufacturer is expecting to begin deliveries in 2014. "This remarkable airplane symbolizes the future of executive aviation and is the product of the innovation, talent and dedication that is part of the Embraer culture," said Frederico Fleury Curado, Embraer President and CEO. Follow the following week to view more: http://www1.embraerexecutivejets.com/en-US/jets/legacy-500/Pages/first-flight.aspx

Executive AirShare rolls out business jet leasing program at NBAA

Executive AirShare, which was founded in Wichita, showcased a new program at this year’s National Business Aviation Association’s annual convention.

The regional fractional ownership company, headquartered in Kansas City, is introducing a leasing program allowing members to lease, rather than buy, a percentage of an Embraer Phenom 100 business jet.

The company is dedicating a portion of its fleet to the program, called Launch.

In a “soft” rollout of Launch, Executive AirShare signed eight customers in the first 30 days. That’s better than expected, said Keith Plumb, the company’s president and chief operating officer.

“It’s been a very well-received product that has a lot of potential,” Plumb said.

Members have access to the airplanes, which are flown by Executive AirShare pilots, for up to 25 days or 60 flight hours during the two-year term of the lease.

They also will be able to switch to one of the company’s King Airs.

The lease program “provides all the same benefits of a fractional ownership program, but at a lower entry price,” Plumb said.

There is also an hourly rate, which is slightly higher than the rate for a fractional owner, he said.

The Launch program serves as a bridge for customers to eventually move to fractional ownership.

“Within the Launch agreement, there is an incentive for when the Launch member is comfortable, they can covert to ownership at very good terms,” Plumb said.

The company expects its Launch business to eventually make up about 20 percent of its total revenue.

“It’s a good way to get people flying our airplanes, getting to know us and our products,” Plumb said.

The program’s introduction is good timing he said, because people are still unsure about the economy.

The Launch program takes aim at competitors that offer jet cards, which allow a customer a specified number of flight hours for a set fee.

The Internal Revenue Service categorizes the flights as charter flights, subject to a 7.5 percent excise fee, Plumb said. The IRS, meanwhile, considers fractional flying noncommercial and not subject to the excise fees.

The Launch program has created more demand and more jobs for Executive AirShare, Plumb said. It’s adding eight pilots by the end of the year.

It currently employs about 130, including about 70 pilots.

The company also plans to add additional King Air and Phenom 100 aircraft to its fleet.

The company allots 1/16 of a Phenom 100 to each customer of the lease program. When 7/8 of a plane is sold or leased, the company adds another aircraft.

The company’s fractional ownership business has been steady, Plumb said. It has picked up some former CitationAir customers after CitationAir, a subsidiary of Cessna Aircraft, announced it was ceasing fractional jet sales to focus on its jet card and jet management business.

“It really stimulated our business,” Plumb said.

Executive AirShare has more than 140 shareowners, up from more than 120 a year ago.

It has 26 airplanes in its fractional fleet and manages 16 more.

The company is expanding into Austin, San Antonio and Houston – and hiring two Texas-based sales directors.

It currently serves Wichita, Kansas City, Tulsa, Oklahoma City, Fort Worth and Dallas in Texas, and Buffalo, N.Y.

Its fleet includes Phenom 300, Phenom 100, Beechjet 400A, King Air 350 and King Air C90B aircraft.

“We’re setting up for significant growth,” Plumb said.

Read more here: http://www.kansas.com/2012/11/03/2556044/executive-airshare-rolls-out-business.html#storylink=cpy

Embraer sees China buying 15 pct of world regional jets by 2031

Brazil's Embraer SA, the world's largest maker of regional jets, expects China to buy 15 percent of new 61- to 120-seat aircraft by 2031 as a growing middle class bolsters travel between second-tier cities.

Embraer released the regional aviation estimate at an air show in Guangdong Province on Tuesday, forecasting 1,005 new jets in the segment over the next 20 years. Last year, Embraer forecast 975 new regional jets in China by 2030, representing 13 percent of global demand.

The company also said it sees Chinese demand for 650 business aircraft by 2022 worth $24 billion, making up 9 percent of global deliveries by value.

Embraer has delivered 120 commercial jets in China since 2000, capturing 77 percent of the Chinese market for aircraft smaller than 120 seats and diversifying away from U.S. and European Markets that have struggled in recent years.

The planemaker also got clearance in June to begin producing its Legacy 650 executive jet in China, reducing the cost and inconvenience of selling planes requiring import licenses.

From 2012 to 2031, Chinese airlines are likely to receive some 455 jets with 61 to 90 seats and 550 jets with 91 to 120 seats, according to the planemaker's estimates.

(Reporting by Brad Haynes and Cesar Bianconi in Sao Paulo;editing by Sofina Mirza-Reid)

Embraer Gears Up To Begin Legacy 500 Flight Testing

Embraer displayed the midsize Legacy 500 prototype for the first time with a painted finish on Friday to a group of aviation journalists visiting the manufacturer’s headquarters in São José dos Campos, Brazil. Legacy 500 S/N 001, the first of four planned flight-test aircraft, is currently being prepared to fly before year-end.

Embraer launched the Legacy 500 and the mid-light Legacy 450 in March 2008. The manufacturer touts the duo as the first jets in their respective categories with stand-up flat-floor cabins and fly-by-wire (FBW) flight controls.
However, integration problems with the three-axis FBW system provided by Parker Aerospace delayed development of the Legacy 500, which was originally expected to enter service this year. Parker was “not able to keep the milestones, so we brought in the Embraer engineering team and BAE to help,” said Embraer Executive Jets senior vice president of operations and COO Marco Tulio Pellegrini. Embraer Executive Jets president Ernest Edwards called the situation “a bad dream,” adding, “It’s all behind us now, and we’re back on track.”
The flight-test program calls for the four prototypes to fly 1,500 to 2,000 hours. The following Legacy 450 flight-test program will involve two prototypes and fewer flight hours due to its commonality with the Legacy 500, Embraer said.

Phenom 300 production begins in Florida

In late August, the first wing and fuselage of the Phenom 300 arrived in the Melbourne, Florida facility. Embraer Executive Jets have now added the Phenom 300 executive jet to their production line, two-shift assembly operation. Full development of the assembly line, including the addition of the Phenom 300, will be completed in the first quarter 2013.

“We have added the Phenom 300 to bring production closer to our customers,” said Phil Krull, managing director of the facility. “Customers have been benefiting from the delivery of the entry-level Phenom 100 produced in Melbourne since last year and we are now ready to expand these operations.”

Since its recent arrival, the fuselage and wing of the Phenom 300 have been readied for the commencement of assembly.

The addition of the Phenom 300 to the assembly line comes as Embraer is developing the Embraer Engineering and Technology Centre USA at its growing aeronautical complex in Melbourne. Scheduled for completion in 2013.

The Phenom 100 and Phenom 300 assembly line has the ability to ultimately produce eight aircraft per month in a mix of the two aircraft produced on a single assembly line. The first US-assembled Phenom 300 is scheduled for delivery in March 2013, one of more than 12 scheduled for production in Melbourne in 2013. The production certificate recently granted by the Federal Aviation Administration for the Phenom 100 will be expanded to include production of the Phenom 300.

Embraer Releases New Aviation iPad Apps

Embraer Executive Jets has released two new iPad apps–eTechPubs and Customer Support and Services Guide–that make it easier for customers to access technical and customer support information. “These new apps are part of our long-term strategy to continue developing mobile product support solutions and move to tablets and other mobile devices, expanding the paperless concept not only in the cockpit but in the maintenance bay,” said Embraer Executive Jets vice president of customer support and services Edson Carlos Mallaco.

The eTechPubs app, which is currently available for the Phenom 100 and 300, eliminates the need to carry the manuals in a 40-pound flight bag and offers real-time information at a user’s fingertips–either online or offline. Customers with a valid technical manual revision service can use eTechPubs to download all technical manuals to a single iPad for free. Embraer said eTechPubs will be expanded to all the company’s business jets later this year.
Meanwhile, the Customer Support and Services Guide app expands customer access to Embraer Executive Jets’ worldwide customer service facilities and personnel. In addition to customer support contacts, service center network and AOG services, the app is designed to provide information on training, Embraer service solutions and Embraer-related news in addition to upcoming events.

Embraer Executive Jets Launches Legacy 450 Fabrication

August 13, 2012 São José dos Campos, Brazil -- Embraer Executive Jets passed a major milestone in the mid-light Legacy 450 program last week when the first part was milled for the business jet, ushering in the beginning of fabrication.
"Even as we have been making progress on the Legacy 500, we have been anticipating this event for the Legacy 450," said Ernest Edwards, President, Embraer Executive Jets. "The first metal cut for the Legacy 450 is a landmark event for the program and is the latest step in bringing this, the second of our revolutionary jets to reality." A component of the forward fuselage, the part was milled from a block of aluminum alloy by a five-axis, high-performance machining center. Fully automated, the milling process drew data directly from a digital mockup of the 2,300-nm-range Legacy 450. Once completed, the part was approved by a quality control process that employed the use of laser devices for design validation with the digital mockup. The Legacy 450 is designed with the latest engineering software, CATIA V5, with production planning for the business aircraft simulated by digital virtual manufacturing software. The first metal cut comes after the completion of the Joint Definition Phase for the aircraft in May. The Detailed Design and Certification Phase is ongoing and the Critical Design Reviews are scheduled to be completed at the end of August. For both the Legacy 450 and mid-size Legacy 500, Embraer has completed more than 8,000 systems test hours with 2,500 hours logged on the Iron Bird since November 2010. The two aircraft bring fly-by-wire technology to the mid-light and mid-size segments for the first time. Based on extensive customer feedback, the aircraft have a six-foot, stand-up cabin with a flat floor making them the largest cross sections and cabin volume in their classes. They also offer the only wet galley in their segments as well as Honeywell's Ovation Select cabin management and entertainment system. They come with a vacuum toilet standard, also unique to each class. The cockpit sports the Rockwell Collins Pro Line Fusion avionics, ready for upcoming CNS/ATM requirements. Follow Embraer on Twitter: @EmbraerSA

Embraer Sees Price Pressure On E-Jets

Embraer is facing rising pressure to lower the price of its regional E-Jets to land new orders, its chief executive said, as a weaker global economy and stiffer competition drag on sales.
"Pricing pressure is a growing concern, especially if we have to stimulate demand a little bit," CEO Frederico Curado said.
"But so far we haven't done anything outside our classic behavior, being very conservative in the quality of the deals we have signed."
A weaker global economy, new competitors and aggressive sales campaigns by Boeing and Airbus in the narrow-body segment have made it harder to meet targets for commercial jets this year, Curado said.
But Embraer is still aiming to book a new order for every E-Jet it delivers this year, after its order backlog dropped to a six-year low in June.
"We do have some challenges in the short-term as far as sales. We are still targeting a one-to-one book-to-bill ratio," Curado said. "Of course, it is more challenging than it was three months ago, but it is still possible."
The company said in its second-quarter earnings release late on Monday that a more favorable exchange rate and solid operating performance in the first half of 2012 led it to raise the outlook for profit margins this year.
Embraer now expects earnings before interest, taxes, depreciation and amortization to be between 12.5 percent and 13.5 percent of revenue in 2012. The company previously forecast an EBITDA margin between 11.5 and 12.5 percent this year.
Brazil's currency, the real, lost 10 percent against the US dollar in the second quarter, which analysts expect to boost Embraer's long-term profitability, as about one-third of its costs and only a tenth of sales are denominated in reais.
SCARCE NEW ORDERS
Still, analysts have warned that Embraer will burn through its order pipeline quickly if it does not land new orders or slow its assembly line.
The company booked about one new regional jet order for every three it delivered in the first six months of 2012, reducing its backlog to the lowest level since 2006, worth around two years of revenue.
A fragile global economy and Europe's debt crisis have depressed new demand for E-Jets, which are facing stiffer competition from Canada's Bombardier and newer Japanese rival Mitsubishi Aircraft.
Looking ahead to next year's production schedule, Curado said he anticipated a slight increase in business jet production.
If Embraer can fill its order book for steady E-Jet output next year, he said, overall business should be stable or expand slightly next year.
Embraer clinched a much-needed regional jet order from Venezuela on Tuesday, when Venezuela's Conviasa Airlines agreed to buy six E-190 jets during a visit to Brasilia by Venezuelan President Hugo Chavez.
The order, which was agreed in principle in December, is worth USD$272 million at list prices and could grow to USD$904 million if the airline exercises options for an additional 14 planes, according to a statement released by Embraer. The first deliveries are planned to start by the end of 2012.

Beever Joins Embraer Executive Jets to Head Interior Design

Melbourne, Fl, July 5, 2012 – Embraer Executive Jets named Jay Beever as Vice President Interior Design adding to the Company’s growing team of engineers and designers at its headquarters in Melbourne, FL.

“The addition of Jay Beever to our already excellent design staff is a further indication of our commitment to developing unique aircraft interiors that best serve the needs of our customers,” said Marco Túlio Pellegrini, COO and Senior Vice President Operations, Embraer Executive Jets. “It comes as we are opening a new design studio for the Legacy 650 and Lineage 1000 at our Melbourne Customer Center and introducing the 2012 Edition of the Legacy 650 with its new, refined interior. Jay’s long experience in interior design and engineering in the aerospace and automobile industries will complement this work and take Embraer Executive Jet interiors to the next step.”

Beever is well known in the business aviation and automotive industries for his interior work for high-end, luxury products at Gulfstream Aerospace and Ford Motor Company. Beever’s work as interior design manager in the New Product Development Department at Gulfstream included interiors for the Gulfstream 650, the G450 and G550 as well as overseeing the design and construction of a new design studio for the company. He also developed several design enhancements for automobiles at Ford

NTSB Alert on NEXRAD

The National Transportation Safety Board (NTSB) has issued a safety alert warning pilots of potentially misleading age indications of NEXRAD weather radar images displayed in the cockpit. Misinterpreting or ignoring the significance of the time stamp has led to fatal accidents.

The cockpit display of NEXRAD mosaic radar images is created by weather service providers using data collected from various NEXRAD ground sites. The age indicator associated with the cockpit display does not show the age of the actual weather conditions as detected by the NEXRAD sites, but instead shows the age of the mosaic image created by the service provider.

Weather conditions depicted on the mosaic image will always be older than the age indicated on the display. The NTSB warns that in some extreme situations, the actual age of the displayed radar mosaic could reach 15 to 20 minutes, and severe weather can move and change dramatically in that period. A good rule of thumb is to add 10 minutes to the time stamp on the NEXRAD image displayed in the cockpit, and assume that is the age of the actual radar returns. 

To read the full NTSB discussion, go to Click here to read more

Embraer Receives FAA Production Certificate

Melbourne, Florida – In a ceremony at Embraer Executive Jets’ Melbourne Campus, the Federal Aviation Administration (FAA) presented Embraer its Production Certificate to assemble Phenom 100s in the United States. Previously, Phenom jets assembled in Melbourne have been certified under the FAA type certificate granted to those produced in Brazil.

“This is a significant milestone for Embraer and is the culmination of a series of achievements in the last year,” said Ernest Edwards, President, Embraer Executive Jets. “We opened this facility just over a year ago, delivered the first U.S.-produced Phenom 100 in December and the first U.S.-produced aircraft to go to an international customer in March."

The presentation caps four years of work by a dedicated team of professionals at Embraer and the FAA at both its FAA Manufacturing Inspection District Office (MIDO) office in Orlando and its Small Aircraft Directorate in Kansas City that inspects and certifies aircraft companies to manufacture products under an FAA-approved type design.

"The production certificate is a testament to the hard work of a team of Embraer employees," said Phil Krull, Managing Director, Melbourne Production.  “We are justly proud of this facility in which we combined highly educated, high-tech people with advanced production techniques that are on the leading edge of modern aircraft production. Melbourne is Embraer’s first 'paper-less' line, a leaner, cleaner and faster process. Our employees here are proving these concepts and are leading the way. This FAA certification is recognition of that."

The Production Certificate is an approval under 14 Code of Federal Regulation (CFR) Part 21 and managed by the Small Aircraft Directorate. The Embraer and FAA teams worked on quality manuals, procedures and product audits, as well as, internal and external supplier visits to ensure all facets of production met the highest quality and safety standards. 

Harbin Embraer to build Legacy 600/650s

Embraer has signed a new agreement with its Chinese joint venture partner Aviation Industry Corporation of China (AVIC) to build Legacy 600 and 650 business jets in China.

The aircraft will be built by the two parties’ existing joint venture, Harbin Embraer Aircraft Industry Co (HEAI), which started operations in 2002 building regional jet aircraft for the Chinese market.

ICBC Leasing will be the first customer for the Chinese built Legacy 650, with a firm order for five aircraft plus five options announced on June 21. The first delivery from the Harbin line will take place by the end of 2013.

“HEAI’s Legacy 600/650 program and an immediate order from its first customer is solid proof of the faith our Chinese customers place in Embraer,” said Guan Dongyuan, president of Embraer China.

“China’s fast growing economy has been cultivating its business aviation market, which is expected to require some 635 executive jets in the next decade. We believe that Embraer Executive Jets will play an important role in China’s executive aviation market.”

Item by australianaviation.com.au at 2:20 pm, Monday June 25 2012 

Robb Report Cites Embraer Phenoms as Best of the Best for 2012

Robb Report magazine named Embraer’s Phenom 100 and Phenom 300 as best in the entry-level and light business aircraft categories, respectively, in its just-published Best of the Best 2012 report.


“Robb Report is an authority for sophisticated, affluent consumers and showcases the most prestigious luxury brands around the globe,” said Ernest Edwards, President, Embraer Executive Jets. “This is the second year in a row that our executive jets have been cited by this discerning brand which confirms what we have long been saying. The entry-level Phenom 100 and the light Phenom 300 offer the best in class on any number of points including operating costs, interiors and performance.”


The magazine cited the Phenom 100 for its capabilities and cost savings, noting they have made it the world’s most-delivered business aircraft in recent years. Robb Report also confirmed the Phenom 300’s game-changing status.


The latest awards follow a similar designation by Robb Report China in which the Legacy 650 was chosen as the Best of the Best in the large executive jet category in 2011. In addition, Embraer Executive Jets adds the latest Robb Report accolades to a number of awards it has achieved for design and engineering.


In 2011, Embraer Executive Jets won Flying Magazine’s Editor’s Choice Award for the Phenom 300, which the magazine cited as a true game changer in business aviation.

In 2010, Flightglobal cited the Legacy 450 and Legacy 500 executive jets, now in development, for its Innovation of the Year achievement award for the development of the electronic fly-by-wire flight commands. Embraer also received the IDEA/Brazil 2010 design award, the Brazilian version of the IDEA/USA award – one of the most prestigious design awards in the world – for the Legacy 450 and Legacy 500, the Phenom 100 and Phenom 300 and the Lineage 1000.

The Embraer Phenom 100 was cited by the Brazilian Innovation Agency (Financiadora de Estudos e Projetos - FINEP) which gave the company its FINEP 2007 Award for Technological Innovation. The award is designed to encourage entrepreneurial projects throughout Brazil and is one of the most prestigious awards in the country.

New Upgrades for the Phenom 100 & 300

Embraer announced at the European Business Aviation Convention and Exhibition (EBACE). 

• Certification of a two-place side-facing divan for the Phenom 300, by Brazil’s Agência Nacional de Aviação Civil (ANAC), bringing total capacity up to 11 occupants;
• Two new interior options on the Phenom 100--replacing the fwd wardrobe cabinet with a pax seat, and a belted potty seat--that have the potential to bring total seating capacity to eight. Plus, Embraer is seeking an increase in Max Zero Fuel Weight of the 100 to enable the additional seating capacity. The MZFW increase will be ofered as an option;  
• The naming of Delta Aerospace as Embraer’s Authorized Sales Representative (ASR) in Turkey for its full line of executive aircraft;
• New iPad app that enables user to download aircraft technical manuals in PDF form, and an iPhone Customer Support and Services Guide app. It will be followed later this year by an iPad app. In addition to customer support contacts, service center network and Aircraft on Ground (AOG) services, the app is designed to provide information on training, Embraer service solutions and Embraer-related news as well as upcoming events.
• The appointment of Altenrhein Aviation Ltd as a new Phenom 100 and Phenom 300 Authorized Service Center in Europe;
• EASA certification and availability of Traffic Collision Avoidance System II Version 7.1 for Embraer’s entire portfolio of in-service executive jets.

Garmin G1000 SAIB Issued

FYI...
View SAIB information here

Embraer Sees Positive Market Signs

May 15 , 2012

Embraer is hoping the positive signs it is seeing in the development of the business jet market will start to lead to broader momentum for deals.
“April was a very good month for us,” says Embraer CEO Frederico Fleury Curado. The question now is whether that can be sustained.
One particular area where the company sees a growth in activity is in the U.S., where sales prospects are mounting. That echoes the view at other aircraft makers, although, like Dassault executives, Curado notes the discussions are not necessarily leading to a large growth in orders, yet.
While the lower portion of the market remains soft, the business outlook is brightening from the Phenom 300 on up.
For Embraer, a key milestone in its executive jet product line will be the first flight of the Legacy 500 in the second half of the year. That event will mean more deposits are due and the company will see how strong the order book for the type really is. The Legacy 500 had strong order intake at program start and, while Curado will not rule out some of those not materializing, he expects the start of flight testing to generate new interest.
Embraer is still in the process of building up its executive jet product line, leading to questions of when the Brazilian aircraft maker may take on a new project. Curado says once the Legacy 450 is certified and the KC-390 military transport begins flight testing – both due around 2014 - design engineering resources could be redeployed; some advanced concept work could start even earlier.

However, he stresses, that does not mean the company will embark on a new program. Embraer has long insisted it will only enter a new market segment if it can devise an offering that provides a new capability to operators, rather than chasing business with a “me too” product. a wet galley.

Legacy 500 Completes Ground Vibration Tests

Geneva, Switzerland, May 13, 2012 – With Ground Vibration Tests successfully completed, on the prototype #1, the Embraer Legacy 500 is moving toward its first flight in the third quarter and the beginning of its flight-test campaign. The Legacy 500 is scheduled to enter service between fourth quarter 2013 and first quarter 2014.
“We are progressing nicely toward our first flight,” said Ernest Edwards, President, Embraer Executive Jets. “What we have seen to date provides us with great confidence in the Legacy 500 program as a game-changing executive aircraft.”
Embraer expects to rollout Prototype #2 this month followed by the Honeywell HTF-7500E engine run and start of ground tests. The Prototype #3 fuselage has been completed and work is progressing toward its next milestone which is final assembly.
Configured with 10 seating positions, Prototype #3 will test interior materials and systems including the galley and Honeywell’s Ovation®Select™ inflight entertainment system. Prototype #3 will be equipped with the same interior layout as that displayed on the Legacy 500 mockup at the 12th European Business Aviation Convention and Exhibition (EBACE).
For more information on Embraer Executive Jets, please visit www.embraerexecutivejets.com
About the Legacy 500
Benefiting from its “clean-sheet” design, Embraer has redefined the aircraft category with the introduction of full fly-by-wire technology to the mid-light and mid-size categories for the first time. The technology not only affords greater performance, weight savings and reduced workload but also increases safety. Embraer has incorporated the state-of-the-art Rockwell Collins ProLine Fusion Avionics. The Legacy 500 is the only aircraft in its class with full, six-foot, stand-up cabin with flat floor and pressurization. The pressurization is maintained at 6,000 feet while cruising at 45,000 feet.
The interior, designed in partnership with the BMW Group DesignworksUSA, has already garnered several international design. The Legacy 500 is the only aircraft in the class to offer a wet galley.

Embraer Bidding to Supply Mid-Sized Planes to Buffett’s NetJets

Embraer SA (EMBR3) is in the bidding for an order from Warren Buffett’s NetJets Inc., Ernest Edwards, president of Embraer’s Executive Jets unit said today. NetJets sent out a request for proposals to manufacturers that asked for “anything from 25 aircraft upwards,” he said.
“We submitted our proposals several months ago. We are waiting to hear from them as a result of the submission of proposals,” Edwards said in an interview today in Geneva. “I know a couple of competitors have been advised that they are no longer involved, but we have not been advised that we are not involved, so we are assume we are still involved,” he said.
NetJets Europe Chief Executive Officer Eric Connor said in an interview today that the fractional jet operator was in negotiations for a “substantial” order of mid-size aircraft to replace Hawker 800 and Falcon planes. The order may include both firm orders and options, Connor said,
“We are not in the starting phase, we are a fair way through the process,” Connor said. He didn’t comment on the timing of the order.

Legacy 600 For Sale

Asking price $14,495,000. Looking at all reasonable offers. Contact Rob Davis at rob@wepushtin.com or by phone at +1-773-272-6635. Legacy 600 specification

Phenom 100 For Sale

Asking price $2,950,000. Make an offer. Contact Rob Davis at rob@wepushtin.com or by phone at +1-773-272-6635. Phenom 100 specification

Entry-Level Jet Sales To Remain Sluggish

By Kerry Lynch
Embraer is seeing signs of stabilization of the business jet market in 2012 but still no significant recovery, particularly at the lightest end of the market, executives say. Speaking to analysts during the release of its fourth-quarter results on March 21, Embraer CEO Frederico Fleury Curado says the company is still experiencing cancellations – “not more, not less” than in late 2011. But cancellations overall are still much lower than at the peak of the down cycle, he says.
Curado is encouraged by progress on the Phenom 300 light jet, which has been selected by NetJets and Flight Options for their fractional programs. “The Phenom 300 is doing quite well,” he says. But as for the Phenom 100 entry-level jet and the smallest end of the market, “We’re not seeing any signal of recovery.” Sales have been stable, though, he says.
Embraer’s executive aviation segment overall remained soft in 2011, with deliveries lower than the company originally anticipated. “2011 was a year marked by signs of continued recession, mainly echoing from Europe,” the company says.
The used market remains a drag on recovery, as does tight financing, Embraer says. The executive aviation business, which accounted for 23% of the company’s revenues in 2010, shrunk to 19% last year.
The company continues to make progress toward first flight of its Legacy 500 jet, which rolled out in December. The company last fall disclosed that a software issue with the fly-by-wire control system was delaying the first flight, originally anticipated in late 2011. Curado says the company has been conducting a number of ground tests while it works through the software issue, including ground vibration, engine run and slow- and high-speed taxi. The company is trying to accomplish “as much as we can on the ground before we fly the aircraft, which we foresee for the third quarter,” Curado says. Certification is targeted for 2013.

Phenom 300 delivery marks triple century for Embraer

Embraer has delivered the 300th Phenom business jet to an unnamed US customer.
The handover of the light-cabin Phenom 300 also marks another milestone for the Phenom family: the assembly and first flight of the initial aircraft from the company's year-old Melbourne, Florida facility - home to Phenom 100 and 300 assembly.
"The success of the Phenoms can be seen in the diversity of our customers," said Robert Knebel, Embraer Executive Jets vice president for North America sales. "These include private individuals, corporations, universities, fractional, charter, flying schools and motor racing executives. Fifty percent of the Phenom deliveries have been taken by North American customers, with Latin American operators accounting for another 30%. Europe, the Middle East and Africa account for 17%, while Asia accounts for 3% of the market."
Meanwhile, Embraer has delivered the first Czech Republic-registered Phenom 300 to charter and management company ABS Jets. The handover brings the Prague-based operator's fleet to 13 aircraft, including six Legacy 600s, one Bombardier Learjet 60XR, one Cessna Citation Bravo and four Gulfstream types. The aircraft support ABS's operations in Prague and Bratislava, Slovakia.

The Phenom 100 Market Today

The Phenom 100 is the most successful aircraft in its class and continues to outperform its competition in both performance and value. With nearly 280 aircraft in the fleet, the Phenom 100 has put the VLJ products to the test. Due to its success, the market remains strong and individuals around the world are constantly inspired to own this one of a kind airplane. In addition, with 16 conveniently located maintenance facilities in North America and a total of 34 worldwide, it is very easy to have your Phenom serviced. As this network grows, the demand for Phenom 100s will increase, giving sellers a larger buying audience.  

The number of Phenom 100s “for sale” has declined over the past 6 months which indicates this market is trending in a positive direction for Phenom owners. In September of 2011 there were 25 Phenom 100s for sale. However, today there are only 17 on the market. This is a huge reduction in the available inventory and a good indication that the market is beginning to make a comeback. With only 9% of the total fleet for sale and demand increasing, I expect to see this trend to continue. In general, this level of market saturation is considered to be very healthy; good news to those owners and operators out there who were previously worried about their aircraft value. The average asking prices for these aircraft are $3,158,909, which is up 3% from September, 2011 and the number of potential buyers has increased. With all of this said, I believe that the Phenom 100 will continue to stand its ground against competition and the market will remain strong. 

If you would like to discuss the market in depth or receive a free evaluation of your aircraft, please feel to contact me at your convenience via email at rob@wepushtin.com or phone at 773-272-6635.

First Medevac Version of the Phenom 300

São Paulo, Brazil, February 29, 2012 - Embraer delivers the first Medevac version of the Phenom 300 jet to Amil Resgate Saúde, today. The aircraft, with tail number PP-UTI, which was transformed into a veritable flying ICU (UTI, in Portuguese), is the 100th Embraer executive jet to be delivered in Brazil.

"With this modern aircraft, we can offer the unique and excellent services highly recommended and reflected by the satisfaction of our clients," adds Jorge Ferreira da Rocha, President of Amil Assistência Médica Internacional.

"The delivery of Embraer's 100th executive jet in Brazil to meet Amil's challenging operational requirements makes this event even more important," says Breno Corrêa, Vice President, Marketing and Sales, Latin America - Embraer Executive Jets. "The rapid growth of the Brazilian executive jet market is a sign of maturity. More and more business people see this product as a powerful tool for productivity - a true time-saver - that helps generate wealth for the company using it and for the nation, as a whole."

Embraer was responsible for installing all of the equipment on the aircraft, which included a new interior design and assembly, and additional certification by aviation authorities. The current cabin configuration provides horizontal space for a stretcher, and four seats for the medical team and companion, as well as a private aft lavatory. All of the seats rotate, to facilitate reaching the patient and carrying out any necessary medical procedures during the flight.

About the Phenom 300 Medevac

The Phenom 300 was granted supplementary type certification, and the special medical rescue equipment package was installed. It has a ten-hour independent oxygen supply and 1,000 watts of power for running state-of-the-art medical equipment: monitor, defibrillator, pace-maker, oximeter, ventilator, infusion pumps, and transportation incubator. The jet can be used on calls for distances of more than 300 km, and for more serious cases, thus providing patents with comfort and safety. This modern aircraft stands out for its high cruising speed (839 km per hour), for its ability to operate on short runways, and for its spacious interior. With its range of 3,650 kilometers, nonstop flights can be made from the base, in São Paulo, to any Brazilian capital city, and to a few cities outside the country, like Buenos Aires (Argentina) and Santiago (Chile). The new version of the Phenom 300 is equipped with the traditional Patient Loading Utility System™ (PLUS) manufactured by LifePort, which is one of the largest companies in the world for customizing Medevac aircraft. This complete system unites electrical, mechanical and gas-powered components to provide greater safety and efficiency for loading, unloading and accommodating the patient, without interfering with the jet's functions. There are independent points of entry for electricity, so that the system runs without impacting the aircraft's electrical systems; the stretcher locks into place, for greater safety, especially during turbulence; and 10 hours of oxygen support. Other distinctive characteristics of the aircraft include its agility and speed, but with fuel economy. The jet has the highest pressurization level in the light category, which is an important point for patients who need to remain as close to sea-level conditions as possible. The entry door of the airplane is the largest in its segment, facilitating loading and removing the patient. Features that make the jet an excellent option for Medevac operations are its comfortable and spacious cabin. Furthermore, the capability of operating on short runways allows access to many places in Brazil and in other countries, offering greater flexibility for using the airplane.

Embraer Projects Revenue Increase for 2012

Commercial, executive aviation markets stable -filing
* Planemaker sees 2012 net revenue of $5.8 bln to $6.2 bln
* Says met estimate of 2011 revenue at $5.6 bln to $5.7 bln
By Brad Haynes and Cesar Bianconi
SAO PAULO, Feb 9 (Reuters) - Brazil's Embraer , the world's third-largest planemaker, expects a modest increase in revenue this year thanks to the expansion of its defense unit, as regional-jet and executive aviation markets remain stable.
Embraer said in a filing on Thursday it expects net revenue of $5.8 billion to $6.2 billion this year, after meeting estimates for 2011 revenue of $5.6 billion to $5.7 billion.
"Considering more accelerated growth in the area of defense and security and stable markets for executive aviation and commercial aviation, the company expects revenue may grow slightly in 2012," Embraer said in the filing.
Luiz Carlos Aguiar, the head of Embraer's Defense and Security unit, told Reuters last month his segment could make up a quarter of total revenue by 2020, up from an estimated 14 percent last year and under 5 percent in 2006.
The estimates issued on Thursday suggest 17 percent of revenue this year will come from executive aviation, excluding services, down from 21 percent in the original 2011 estimates. A shakier outlook for the global economy prompted a string of cancellations for Embraer's business jet orders last year.
Embraer said it expects to deliver between 105 and 110 commercial aircraft this year after delivering 105 commercial jets last year. In executive aviation, the company expects to deliver 15 to 20 large jets and 75 to 85 light jets in 2012, after delivering 16 large jets and 83 light jets last year.
Embraer expects stable demand in the regional commercial aviation market, which it dominates, allowing it to replace deliveries with new orders of similar value. The company ended 2011 with a backlog of firm orders around $15.4 billion.
The planemaker's chief rival for the segment, Canada's Bombardier Inc, said late last year it would cut regional jet production because of economic uncertainty.
Embraer plans to invest about $650 million this year, up from the $450 million earmarked for 2011. The company said a flood of fourth-quarter deliveries brought its free cash to about $470 million at the end of last year.
Shares of Embraer closed 0.7 percent lower at 12.02 reais in Sao Paulo on Thursday, little changed after the estimates were posted to the website of Brazil's securities regulator and close to the 0.5 percent drop on the benchmark Bovespa stock index .

Embraer Reports First Engine run on the Legacy 500

Embraer performed the Legacy 500 first engine run on January 17, at the Company’s headquarters in São José dos Campos, Brazil. This was the second major milestone in the development of the midsize executive jet program, following the aircraft’s roll out, on December 23, 2011.

A series of preparatory evaluations – such as APU tests and first refueling – were held the day prior to the engine run. Engine tests are essential to properly evaluate all dependent systems: bleed air, electrical, environmental (air conditioning), hydraulic and FADEC logics, as well as the integration of the engine with avionics.

“Being successful on our first engine run reflects the robustness of the concept conceived by our engineers,” said Luciano Castro, Legacy 500 Program Vice President – Embraer Executive Jets. “This was possible thanks to the extensive use of RIGs to test the systems prior to aircraft prototype availability. It makes us confident that we will have a smooth flight test and certification campaign.”

The entire process is recorded, and data obtained are compared to engineering projections. Once engines reach full thrust and systems integration is confirmed, low-speed taxi tests will commence.

The first flight of the Legacy 500 is expected to take place in the third quarter of this year.

Improvements to 2012 Legacy 600/650

Embraer has introduced improvements to the Legacy 600/650 executive jets that refines the interior, features a more modern cabin management system and offers increased efficiency and safety for aircraft operations. The new versions, with a host of new options, are now available for standard aircraft produced in 2012.

"These changes are specifically designed to increase cabin comfort and capabilities to ensure passengers have the right environment to either relax or maintain their productivity," said Ernest Edwards, president Embraer Executive Jets. "Key to this is our effort to reduce cabin sound levels, which set a new benchmark for the Legacy 600 and Legacy 650 class of aircraft. Complementing the new features is a full, high definition entertainment system. Customers will be able to see the improvements during the worldwide demonstration tour we will launch in March."

The new interior includes the Honeywell Ovation Select, all digital, cabin management system and this system is also offered on the Legacy 450/500.

In addition to the Ovation Select system, Embraer has improved the interior storage and added a new, wireless handset Iridium telephone system. The company is also offering restyled seats with side-pocket storage. For the wet areas in the galley and lavatory, a selection of six natural stone flooring choices is available. Improvements for the 2012 Legacy 600/650 are not restricted to the cabin and are designed to reduce pilot workload as well as improve the flexibility, efficiency and safety of aircraft operations. The cockpit features improved avionics with the Honeywell Primus Elite. The Elite system includes LCD displays and a cursor control device (CCD) as well as charts and map capability and XM Weather for US operations.

To ensure the 2012 Legacy 600/650 is equipped for the changing air traffic control system, Embraer incorporated VNAV and RNP 0.3 for optimizing airspace use, flight time and fuel burn. WAAS/LPV along with CPDLC FANS 1/A which enables satcom-based ATC communications for trans-oceanic flights are available as options as are Smart Landing and Smart Runway surface awareness and advisory system.

Jackie Chan jet lands at 2012 Singapore Airshow

SINGAPORE: He's into Kung Fu, philanthropy, food, sport and now jets!

But the closest you'll get to Jackie Chan at the 2012 Singapore Airshow is his Embraer Legacy 650 executive jet, .

It's hard to miss with distinctive red and yellow dragon livery, and if that's not obvious enough, there's the name on the tail-wing.

The Kung Fu actor who has added on the role of brand ambassador for Embraer took delivery of China's first Legacy 650 in early February.

"We are exceptionally excited Jackie Chan will become the newest member of our Legacy 650 family, and proud he holds full confidence in our jet to satisfy his demand for productivity, comfort and privacy," said Ernest Edwards, President, Embraer Executive Jets.

Chan's "ebullient personality, spirit of relentless innovation and commitment to society" reflect Embraer's values, added Edwards who went on to describe the actor as "an ideal brand ambassador for Embraer Executive Jets".

Last seen in Holywood's remake of the "Karate Kid", the producer and co-producer of the Chinese epic "1911", will assist Embraer in promoting its entire line of executive aircraft, not only in the rapidly growing greater China market, but globally.

"I chose the Legacy 650 because its large three zone cabin, offering incredibly quiet performance and luxury," said the Hong Kong-born actor.

"I believe that Embraer is poised to become a major player in the Chinese executive jet market and thrilled to fulfill my role as brand ambassador for this great Company."

In addition to Jackie Chan's jet, Embraer received orders for 13 Legacy 650s from China's Minsheng Financial Leasing Co, Ltd, one of the country's leading executive jet leasing companies.

Apart from Chan's Legacy 650 executive jet, Embraer is making its Singapore Airshow debut with a fleet that includes commercial jets, and the Lineage and Phenom executive jets.

Honda out to shake up market with 1st jet next year

TOKYO, Jan 30 (Reuters) - Honda Motor Co expects to grab at least a quarter of the world market for small business jets soon after delivering its first aircraft next year, achieving the company's long-standing goal of taking to the skies, an executive said.
Honda, Japan's No.3 car maker and the world's biggest manufacturer of motorcycles and engines, is in the final stages of getting its $4.5 million HondaJet certified. It aims to ramp up the pace of production to 80 a year in the first half of 2013.
Honda received more than 100 orders for the seven-seater jet in three days when it began taking orders in 2006, promising a quieter engine, 20 percent better fuel economy over competing models and operational costs of two-thirds or less.
It has not disclosed an updated number of orders, but Michimasa Fujino, a Honda executive and CEO of its North Carolina-based subsidiary, Honda Aircraft Company, said it held a backlog of about three years from orders taken through its nine dealerships in North America and Europe.
"I'm very optimistic about our prospects," Fujino, who initiated Honda's foray into aviation research in 1986, told a small group of reporters at the automaker's Tokyo headquarters on Monday.
"We're doing with HondaJet what the Civic did to American cars from the 1960s. Our competitors are still producing with technology from the 1990s," he said, referring to Textron Inc's Cessna and Brazil's Embraer SA, which now dominate the 200-a-year small business jet market.
The Civic, known for its reliability, durability and mileage, has consistently been among the United States' best-selling cars since its launch in 1973, forcing industry giants such as General Motors Co to follow suit with cars to meet the country's tighter emissions regulations.
Honda's ambition of making jets traces back to its iconic founder, Soichiro Honda. The HondaJet will make Honda the only car maker in the world to build its own aircraft.
Its engine is made by a joint venture between Honda and General Electric Co.
Honda Aircraft is aiming to turn a profit by 2018, Fujino said.
BRAZIL, CHINA CLAMOURING FOR JETS
The business jet industry is expecting a rebound in sales this year after the global economic crisis hammered sales over the past three years.
While the small business jet market has traditionally been limited to North America and Europe so far, Fujino said he was fielding about a call a week from China, both from prospective buyers and eager dealers, while interest was also greater than he anticipated in Brazil, India and the Middle East.
"Right now we want to focus on delivering on the orders that we have, but I'd like to enter Brazil and China earlier than we'd initially planned," he said, declining to specify a timeframe. New demand from emerging markets could expand the global small-jet market to about 300 a year, he said.
Fujino said he was also seeing more interest in the smallest end of the market as medium-sized jet users look to downsize to get more for their fuel, much like the trend in the car industry.
"Most of our customers are owners of small- and medium-sized businesses, and many are looking to get the most out of the jets that they need," he said.
With operational costs of about $1,000-$1,200 an hour, HondaJet could make travelling in a group of five or six cheaper and more efficient than flying commercially between small cities, he said. Competitors offer at best $1,800 by comparison, he added.
Honda Aircraft will add 300-350 factory staff to bring its total workforce to around 1,000 in the first half of 2013, Fujino said.

Embraer delivers China's first Lineage 1000

Brazilian aircraft manufacturer Embraer has delivered its first Lineage 1000 executive jet to an unnamed customer in China.
"It is inspiring news to have the first Lineage 1000 delivered to the Greater China Region, which is an important milestone for the company's presence in this market," said Embraer China's president, Guan Dongyuan.
Based on the E-195 airliner, the Lineage 1000 is Embraer's largest executive jet and can accommodate up to 19 passengers.
It is powered by two General Electric CF34-10E7-B engines and has a range of 8,334km (4,500nm). The aircraft can fly non-stop on routes such as Beijing-Dubai and Hong Kong-Sydney.

Embraer rolls out the Legacy 500 on schedule

Embraer has rolled out its newest executive jet, the midsize Legacy 500,narrowly achieving its Q4 2011 target.

The milestone rollout - at the production hangar at the company's São José dos Campos headquarters, in Brazil - will allow development and test engineers to perform important ground tests, prior to the aircraft’s first flight, which is scheduled for the third quarter of 2012.
“This is a significant day for the Legacy 500 program,” said Maurício Almeida, vice president, programs – Embraer Executive Jets. “Releasing the aircraft from production to the test team will allow us to gather vital information during ground tests, which will be used to shorten the flight test campaign.”
Following the rollout, the aircraft will undergo initial systems evaluations leading to the first engine run, and then to the ground vibration tests (GVT), and the full regimen of ground tests. This aircraft is the first of three prototypes that will be used in development, ground, flight and certification testing.

There are more than 800 Embraer engineers supporting these technical efforts. The aircraft will be certified by ANAC (Brazil), FAA (USA), EASA (Europe), and other aviation authorities in key markets throughout the world.

The aircraft is powered by two Honeywell HTF 7500E turbofan engines, each one producing 6,540 pounds of thrust at takeoff. They will allow the aircraft to fly at a high-speed cruise of Mach 0.82, and to have a range of 5,600 kilometers (3,000 nautical miles) with four passengers. The jet features the advanced Rockwell Collins Pro Line Fusion Integrated Flight Deck, as well as a modern full fly-by-wire system with complete flight envelope protection.

The Legacy 500 can accommodate up to 12 passengers in a stand-up cabin with 6-foot (1.82-meter) ceiling and a flat floor. Cabin design and amenities include four berthable (fully flat) seating pairs, a low 6,000-foot cabin altitude, Honeywell’s Ovation® Select Cabin Management System, and internal and external baggage compartments. Premium seats are also available with leg rest, headrest with flexible wings, electrically actuated lumbar support, and massage and heating systems, which are unique to its category.