0
Airline Market & Embraer Programs Overviews
A perspective from the 30 to 120-seat segment
Airline Market & Embraer Program...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
ERJ 145 Family
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
E-Jets Family
Helping airlines
to improve efficiency
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e ...
Upcoming SlideShare
Loading in...5
×

Airline marketing embraer day 2007

326

Published on

Published in: Education, Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
326
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Airline marketing embraer day 2007"

  1. 1. Airline Market & Embraer Programs Overviews A perspective from the 30 to 120-seat segment Airline Market & Embraer Programs Overviews A perspective from the 30 to 120-seat segment Nov/2007Nov/2007 Mauro Kern Exec. VP Airline Market Embraer Day 2007 Nov 14th, 2007 Embraer Day 2007 Nov 14th, 2007
  2. 2. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Air Transport Industry Review 50-seat Regional Jet Market & the ERJ145 Family 70 to 120-seat Market Evolution & the E-Jets Embraer Market Forecast Contents
  3. 3. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Strong Air Transport Demand Source: ICAO - Contracting States - Scheduled Airlines 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007F 2008F TotalRPK(Trillion) 3.5% 6.2% 5.7% RPK Average Annual Growth Rates -0.4% 9.5%
  4. 4. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0 2 4 6 8 10 12 14 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 CASM(US¢/ASM) • 2Q 2007 Fuel costs = 24% & Labor = 25% of Ops Cost, while 12% & 34% in 2Q2000. • Fuel costs are offsetting labor cost restructuring savings. • Cost Control: Total Cost (Excluding Fuel) has remained flat since 2002. Source: ATA (Airline Cost Index) Strong Effort to Reduce Costs vs. Fuel Increase Total Cost Total Cost (excl. Fuel) Labor Fuel US CASM data
  5. 5. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Positive Net Results Projected for 2007 & 2008 Source: IATA Economics Sep/07 (ICAO data to 2006 and IATA Forecast 2007-2008) Europe Values in US$ Billions US net results includes restructuring costs and excludes United Airlines ‘fresh-start’ accounting losses and gains Africa Latin America North America Middle East Asia Pacific World 05 06 07F2004 08F -6.7 -2.7 2.7-10 2.5 1.6 1.8 2.11.1 3.0 05 06 07F2004 08F 0.2 0.2 0.20.2 0.3 05 06 07F2004 08F -0.1 -0.2 -0.10.1 0.1 05 06 07F2004 08F -0.4 -0.4 -0.1-0.3 0.0 05 06 07F2004 08F 1.2 0.8 0.73.4 2.0 05 06 07F2004 08F -4.1 -0.5 5.6-5.6 7.8 05 06 07F2004 08F
  6. 6. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 TP<30 TP30-60 TP61-90 Jet30-60 Jet61-90 Jet91-120 Jet121-145 Jet146-175 Jet176-210 Jet211-300 Jet301-400 Jet>400 NumberofAircraft(Units) > 30 26-30 21-25 16-20 11-15 6-10 0-5 Source: BACK (Sep/07) WW Fleet Profile - 18,914 aircraft Scheduled Airlines, All Passenger Configuration and Active in Service Age (years) 941 1,751 462 2,057 3,531 921 3,563 1,040 509 1,088 1,421 1,630
  7. 7. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Environment: becoming a Critical Issue Increasingly negative public image >> a pollution symbol Current main focus from NGOs, media, and politicians The main driver for next generation engines and aircraft Industry working to present real facts, based on technical and economic arguments but… Aviation is currently responsible for 2.9% of all CO2 emissions, and expected to increase to 3.3% by 2050*. 97.10% 2.90% All Other Sources Aviation 96.70% 3.30% All Other Sources Aviation 2006 2050 *IPCC Report Aviation and the Global Atmosphere (1999; scenario FE1); IPCC Report on Emissions Scenarios (2000; Scenario A1F1) and BACK (2006)
  8. 8. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Air Transport Industry Main Drivers • New Passenger Profile Different Set of Values (pricing, comfort, more frequencies and direct services) • Increased Competition Pressure for Differentiated Services • Weak Revenue Environment Requires Continuous Cost Reductions, Improved Productivity and Efficiency • Regulatory: Liberalization Opportunities for New Entrants • Regulatory: Environment Increased Costs – may reduce demand • Old Fleet Additional Costs: Fuel & Maintenance • Fuel Prices Increased Costs – may reduce demand • Demand vs. Capacity Need of a Better Match of Market Demand and Aircraft Capacity Driver Consequence
  9. 9. ERJ 145 Family
  10. 10. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 51 51 - - Firm Backlog 864131915Total 682131733ERJ 145 74-74ERJ 140 108-108ERJ 135 DeliveriesOptions Firm Orders ERJ 145 Family Order Book (September 30th., 2007)
  11. 11. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Dec 1998Dec 1998 Dec 1999Dec 1999 Aug 2000Aug 2000 Mar 2001Mar 2001 Sep 2001Sep 2001 May 2003May 2003 Dec 1996Dec 1996 First DeliveryFirst Delivery May 2002May 2002 Feb 2005Feb 2005May 2004May 2004 1,000 ERJ145 Platforms Already Delivered September, 2007
  12. 12. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Market Share - World (30-60 seats) 45 32 17 7 52 48 47 45 46 4745 47 48 52 52 48 5556 55 54 53 68 83 93 53 53 0 10 20 30 40 50 60 70 80 90 100 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Oct/07 (%) Embraer: ERJ 145/140/135 Bombardier: CRJ100/200/440
  13. 13. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t RJ50s Current Situation • Worldwide FIS (Sep/07): 2057 aircraft • 66% in the US; 13% in Europe; 9% in the CIS and 12% in ROW • Parked aircraft (in storage): 22 CRJs; 2 ERJs; 17 others • only 2% of the total fleet – a stable market • RJ50s: responsible for nearly 30% of US domestic departures • China´s regional airline industry starts to develop; FIS = 73 RJ50s • Secondary market being developed: Mexico, Eastern Europe and Africa Source: BACK (Sep/07; FIS=Scheduled airlines and A/C active in service)
  14. 14. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t China: New Opportunities for Regional Airlines • Will operated 50 145s+ 50 E190s. • Started operation with 328s, which will be gradually phased out along the introduction of ERJ145 • Started operation in September 2006 with used RJ50s leased from Shandong airlines that also provides pilots. • Plan a fleet of 50-100 aircraft in the long term. • Started operation in September 2007 with used RJ50s leased from Mesa • Looking for a fleet of 160-200 aircraft including 50 and 100 seaters China Express Kunpeng (Shenzhen & Mesa JV) Grand China Express (Hainan)
  15. 15. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Source: BACK (Mar/07) RJ50 Market Opportunities – Russia/CIS 187 188 149 0 50 100 150 200 Turboprop Jet 30-60 Jet 61-90 NumberofAircraft An-24 50 seats Avg. Age 35 years Yak-40 30 seats Avg. Age 32 years Tu-134 76 seats Avg. Age 29 years Old fleet replacement is needed in the short term: 524 aircraft affected Replacement already started: Dniproavia / ERJ145; Soyuz / EMB120
  16. 16. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t ERJ135 / ERJ140 Higher Density Studies •ERJ 135 = 37 seats ERJ 135HD = 41 seats •ERJ 140 = 44 seats ERJ 140HD = 48 seats • Removal of aft lavatory and Installation of a new lavatory at aircraft fwd. • Add one four abreast row where lavatory was originally installed.
  17. 17. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t ERJ 145 Family Shedule Reliability Status ERJ145 - SCHEDULE RELIABILITY AND COMPLETION RATE 97.00 97.50 98.00 98.50 99.00 99.50 100.00 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2005 2006 2007 SR&CR(%) SR CR
  18. 18. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 2002Q 42003Q 12003Q 22003Q 32003Q 42004Q 12004Q 22004Q 32004Q 42005Q 12005Q 22005Q 32005Q 42006Q 12006Q 22006Q 32006Q 42007Q 12007Q 22007Q 32007Q 4 US$Millions ERJ-145 CRJ-200 RV@ 12 years Residual Value Evolution (RJ50s) Source: average of 12 representative industry Appraisers
  19. 19. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t RJ 50s Future Market Trends • Market entered a mature phase in the US and Europe • RJ50s will remain the backbone of US hub feeding system • Some new market opportunities (long and thin) in the US and EU • Potential for regional aviation development in China and Russia • Secondary market will keep expanding
  20. 20. E-Jets Family Helping airlines to improve efficiency
  21. 21. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Family EMBRAER 170 • 70 to 80 Seats • 2,100 nm Range • Certification – February 2004 EMBRAER 170/175 EMBRAER 190/195 EMBRAER 175 • 78 to 88 Seats • 2,000 nm Range • Certification – December 2004 EMBRAER 190 • 98 to 114 Seats • 2,400 nm Range • Certification – August 2005 EMBRAER 195 • 108 to 122 Seats • 2,200 nm Range • Certification – June 2006
  22. 22. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Family - Main Applications Natural evolution for existing 50-seat markets Right-sizing of low load-factor narrow-body flights Capacity, range & seamless service Enhancing services by increasing frequencies New market opportunities – low risk development Medium density and long/thin markets Replacement of old & inefficient jets
  23. 23. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0% 20% 40% 60% 80% 100% 2000 2007 2000 2007 2000 2007 2000 2007 2000 2007 2000 2007 ASMOffered 30-60 61-90 US Regionals: Trend towards high capacity aircraft Capacity Share by Segment - Jets Source: BACK
  24. 24. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 30% of 61-120 fleet (735 acft) with more than 20 years 0 100 200 300 400 500 600 700 800 0-5 6-10 11-15 16-20 21-25 26-30 31-35 >35 Age (Years) NumberofAircraft Source: BACK (Oct/06) World Market Opportunities – Replacement World Fleet Age Profile (61-120 seats): 2,454 jets / 15 years average age 152,454World 838China 19241Asia Pacific 1648Middle East 22148Africa 23231Russia & CIS 11617Europe 23285Latin America 10846North America Avg. Age # Acft.Region 735 aircraft will be eligible for replacement in the coming years; retirement may be antecipated due to fuel costs
  25. 25. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t *500 nm sector, 100% Load Factor. 0% 20% 40% 60% 80% 100% 120% 140% 160% E170 E175 BAe 146- 100 BAe 146- 200 F70 RJ85 DC9-10 +53% Comparison: Fuel / CO2 Emissions CO2 Emissions*: 61 to 90-seat segment The E-Jets Family offers substantial fleet renewal benefits with fuel / emission reductions up to 50%.
  26. 26. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0% 20% 40% 60% 80% 100% 120% 140% 160% E190 E195 B717 B737- 200 B737- 300 B737- 500 F100 MD87 RJ100 DC9-30 +50% Comparison: Fuel / CO2 Emissions CO2 Emissions*: 91 to 120-seat segment *500 nm sector, 100% Load Factor. The E-Jets Family offers substantial fleet renewal benefits with fuel / emission reductions up to 50%.
  27. 27. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Short Term Fleet Renewal Benefits E-Jets can bring immediate fuel / emissions savings of up to 50%
  28. 28. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Joint Certification means Flexibility Same Type Design for ANAC, FAA and EASA EASAFAA Market swap flexibility Increased residual value July 2006July 2007June 2006EMBRAER 195 January 2005August 2006December 2004EMBRAER 175 June 2006September, 2005August 2005EMBRAER 190 February 2004February 2004EMBRAER 170 EASAFAAANAC
  29. 29. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Training Qualification Differences : According to FAA AC 120- 53, grades range from A (best) to E (worst) in 3 categories: Training Differences, Check Differences and Recurrent Training E-Jets Commonality Training 70% of the potential benefits same cockpit, common systems and fly-by- wire technology mean maximum training commonality within the family -------A/A/AA/A/AA/A/A195 A/A/A-------A/A/AA/A/A190 A/A/AA/A/A-------A/A/A175 A/A/AA/A/AA/A/A-------170 195190175170EMBRAER E-Jets have the maximum training commonality (A/A/A) E-Jets offer an outstanding parts commonality (86% to 100%) Spare Parts 30% of the potential benefits E190 E195 86% E170 E175 Based on the aircraft RSPL (Recommended Spare Parts List) Note: Airframe and Ground Servicing Equipment only (Engines are not included). 100% 100%
  30. 30. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t “Passengers love this aircraft for its spacious interior design and in particular the absence of a middle seat.” Bryan Bedford, CEO Republic Airways (Jul/06) “The comfort of the E175 aircraft is important to our customers and the economics of the aircraft make good business sense.” Scott Kirby, US Airways EVP Sales and Marketing (Jul/06) The Comfort Factor CRJ700/900 17.3” 16” EMBRAER 170/190 18.25” 19.75” A318/320 18.0” 19” Widest seats Widest aisles No middle seats 0.25” (0.6 cm) wider seats 0.75” (1.9 cm) wider aisle Equal volume per seat 0.95” (2.4cm) wider seats 3.75” (9.5cm) wider aisle (+23%) 16% more volume per seat E170/190 advantages: E-Jets: Narrowbody airplane comfort in more convenient sizes
  31. 31. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 5135 5368 6058 6310 7563 0 1000 2000 3000 4000 5000 6000 7000 8000 E170 E175 E190 E195 A319 / B737-700 US$perTripThe Trip Cost Factor US Domestic Network Airline - 800 sm trip Costs exclude: revenue related costs and system (overhead) costs Costs include: variable: fuel, crew, maintenance, landing fees, handling fees ; ownership: lease cost, hull insurance, spares inventory costs 2-class seating: 70 78 94 104 124 Airplane Variable plus Ownership Costs per Trip - 32% - 20% E-Jets: Lower trip costs than comparable airplane sizes
  32. 32. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Air Canada – Merrill Lynch Global Transportation Conference (Jun/2007) COPY Domestic International
  33. 33. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 42106552EMBRAER 195 420 292 60 26 Firm Backlog 292756712Total 99432391EMBRAER 190 46136106EMBRAER 175 137123163EMBRAER 170 DeliveriesOptions Firm Orders E-Jets Family Order Book (September 30th., 2007)
  34. 34. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Market Share - World (61-120 seats) 2 52 38 23 2122 17 4646 4444 40 32 36 39 38 44 42 33 34 25 5 7 9 11 100 100 99 60 28 17 16 16 4 12 1621 29 30 6 9 8 2 5 2 2 0 10 20 30 40 50 60 70 80 90 100 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Oct/07 (%) Embraer: 170/175/190/195 Bombardier: CRJ700/900/1000 Airbus: A318 Boeing: B737-600 AVIC I: ARJ-21 Sukhoi: Superjet 100 Antonov: An-148
  35. 35. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 60 110 112 118 245 343 440 712 619 0 100 200 300 400 500 600 700 800 1999 2000 2001 2002 2003 2004 2005 2006 Sep/2007 AccumulatedFirmOrders E-Jets Customer Base Evolution Source: Embraer Deliveries 1 2 3 4 9 14 19 29 40Customers/ Operators
  36. 36. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Worldwide Distribution Growing and diversified customer-base across five continents. Increased presence in emerging markets with established carriers. 10% 18% 53% 14% 5% Asia Pacific / China Middle East / Africa Europe Latin America North America 19% 26% 19% 19% 17% Customers Firm Orders Source: Embraer (Sep/07)
  37. 37. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0 50 100 150 200 250 300 350 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 AccumulatedDeliveries(units) E-Jets Delivery Pace Evolution 1st Delivery - Mar/2004 200th: Dec/2006100th: Oct/2005 300th: Oct/2007
  38. 38. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 13 E175 4 E170 28 E170 E-Jets Sep/07 16 E170 49 E1908 E190 32 E1754 E175 11 E190 15 E175 34 E190 190183 13 E175 28 E170 17 E175 72 E19029 E190 BacklogDeliveries Source: BACK (4Q06), Embraer E-Jets Deployment in North America 40% 42% 18% 0% 20% 40% 60% 80% 100% Natural Growth Right-sizing New Routes
  39. 39. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E170 Denver – Dayton 942 nm ; 2:47 (1 Daily) E170 Edmonton – Chicago 1,231 nm; 3:10 (1 Daily) E190 Boston – Austin 1,470 nm ; 4:10 (1 Daily) E190 New York-Calgary 1,768 nm ; 5:20 (2 Daily) Airline E175 Philadelphia – Houston 1,150 nm ; 3:30 (2 Daily) E170 New York – Austin 1,316 nm ; 4:10 (1 Daily) Longest Route Source: BACK (Jul/07) E-Jets Deployment in domestic long haul Efficiency and flexibility also for long haul domestic/transborder markets
  40. 40. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 2 E195 10 E190 10 E195 5 E190 6 E170 6 E190 4 E190 30 E190 8 E1956 E195 6 E190 10 E170 4 E190 6 E170 E-Jets Sep/07 8348 10 E170 6 E175 2 E170 BacklogDeliveries Source: BACK (4Q06), Embraer 41% 53% 3% 0% 20% 40% 60% 80% 100% Natural Growth Right-sizing New Routes E-Jets Deployment in Europe
  41. 41. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Deployment in Middle East & Africa 2 E170 1 E1702 E170 6 E170 15 E170 E-Jets Sep/07 628 1 E170 2 E175 1 E195 4 E195 BacklogDeliveries Source: BACK (Jan/07), Embraer 5% 86% 9% 0% 20% 40% 60% 80% 100% Natural Growth Right-sizing New Routes
  42. 42. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 1 E170 1 E170 2 E170 3 E175 5 E1902 E190 10 E170 50 E190 E-Jets Sep/07 8410 5 E170 14 E190 1 E170 BacklogDeliveries Source: Embraer E-Jets Deployment in Asia Pacific & China
  43. 43. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Deployment in Latin America 20 E195 4 E190 2 E190 2 E170 1 E190 2 E170 5 E19010 E190 8 E190 E-Jets Sep/07 3224 1 E1901 E175 BacklogDeliveries Source: BACK (3Q07), Embraer 27% 58% 15% 0% 20% 40% 60% 80% 100% Natural Growth Right-sizing New Routes
  44. 44. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets – more than 1,000,000 Flight Hours (*) Air Canada, Finnair and TAME operate aircraft of both subfamilies Operators 18 Operators 11 Aircraft in Service 181 Aircraft in Service 109 Flight Hours 861,698 Flight Hours 238,362 Flight Cycles 608,493 Flight Cycles 149,492 Fleet Leader Fleet Leader Flight Hours (Republic S/N 0016) 9,430 Flight Hours (Air Canada S/N 0013) 4,974 Flight Cycles (Republic S/N 0016) 6,618 Flight Cycles (JetBlue S/N 008) 3,402 Operators* Aircraft in Service Flight Hours Flight Cycles 1,100,060 757,985 E170/190 Family E170/175 E190/195 26 290 Source: Airlines (as of Sep 30th, 2007)
  45. 45. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E170/190 2006 2007 2008 2009 New Higher Thrust Engine Version CF34-10E7 HUD Repeater + LVTO 170 E-Jets Continuous Product Evolution EFB CAT III B 170 CAT III A Autoland190 CAT III HGS 195 CAT III A Autoland 175 CAT III HGS 190 Steep Approach 170 “… (E-190 flightcrew) will be able to fly every approach the same way, in good weather and in bad, from the left seat or the right seat, to ILS-equipped runways or on non-precision approaches” Usto Schutz, JetBlue’s VP (E190 Program) “… (E-190 flightcrew) will be able to fly every approach the same way, in good weather and in bad, from the left seat or the right seat, to ILS-equipped runways or on non-precision approaches” Usto Schutz, JetBlue’s VP (E190 Program) ETOPS 190 (75’)
  46. 46. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 2006 2007 2008 2009 CAT IIIA Autoland 195 • Steep Approach 190 E175 AR E170 AR …creating value to customers. E-Jets Continuous Product Evolution… ETOPS 190 (120’’)
  47. 47. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E170/175 Schedule Reliability Status
  48. 48. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E190/195 Schedule Reliability Status
  49. 49. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 11,00 12,00 13,00 14,00 15,00 16,00 2002Q 42003Q 12003Q 22003Q 32003Q 42004Q 12004Q 22004Q 32004Q 42005Q 12005Q 22005Q 32005Q 42006Q 12006Q 22006Q 32006Q 42007Q 12007Q 22007Q 32007Q 4 US$Millions Embraer 190 Embraer 195 B737-600 A318 RV@ 12 years Residual Value Evolution (100 seaters) Source: average of 12 representative industry Appraisers
  50. 50. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 70 to 120-seat Future Market Trends Traffic growth on high load factor RJ50 routes Capacity increase on RJ50 routes at peak hours Mainline service level on regional routes LOWCOSTNETWORKREGIONAL Right-sizing of low load factor narrow-body flights Replacement of old and inefficient jets Expansion into medium density markets
  51. 51. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Embraer´s main actions towards a cleaner environment • Embraer was the first aircraft manufacturer to obtain ISO 14001 certification in March 2002. • Embraer is the first aircraft manufacturer to produce a 100% biofuel powered aircraft (Ipanema). • Embraer is improving efficiency of its current aircraft portfolio and investing in the development and implementation of new technologies. • Replacement of old jets can produce emissions reduction of up to 50% in the short term. • Embraer is putting big efforts in cleaning its production processes. • Embraer is fully committed to develop new products that will help the aviation industry to reduce its environmental impact.
  52. 52. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t NEW Market Forecast (2008-2027)NEW Market Forecast (2008-2027)
  53. 53. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t 0% 1% 2% 3% 4% 5% 6% 7% 8% World North America Europe Asia Pacific CIS Africa Latin America Middle East China Average Annual Growth (%) RPK GDP Projected Traffic and Economic Growth Growth by Region (2008-2027) Projected world GDP growth around 3% in the next twenty years sustaining nearly 5% annual increase in air transport demand Source: Global Insight and Embraer (Oct/06)
  54. 54. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Jet Deliveries by Capacity Segment 4,3004,300 1,9501,950 1,5251,525 825825 20182018 -- 20272027 7,4507,450 3,7503,750 2,6002,600 1,1001,100 20082008 -- 20272027 3,1503,150TOTALTOTAL 1,8001,8009191 -- 120120 1,0751,0756161 -- 9090 2752753030 -- 6060 20082008 -- 20172017SegmentSegment Embraer Market Forecast (2008-2027) 30-60: Mature market, low 50-seat demand in the short/mid term. 61-90: 75-seater as a natural growth of RJ50s. 91-120: Right-sizing of narrowbody operations, replacement of old & inefficient jets and airline expansion into mid-density markets.
  55. 55. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Projected Deliveries (30-120 seats): 7,450 Jets North America 3,330 45% Europe 1,350 18% China 730 10% Latin America 580 8% Africa 220 3% Asia Pacific 540 7% Middle East 190 2% CIS 510 7% Embraer Market Forecast (2008-2027)
  56. 56. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t Market Share - World (30-120 seats) 59 52 47 21 45 424244 38 34 24 11 5 4747 4545 52 44 48 50505150 44 51 44 233 3 37 38 23 14 8 4 4 4 2 345 8 8 23 2 1 21 10 10 20 30 40 50 60 70 80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Oct/07 (%) Embraer: ERJ 145/140/135 ; Embraer 170/175/190/195 Bombardier: CRJ100/200/440/700/900/1000 Airbus: A318 Boeing: B737-600 AVIC I: ARJ-21 Sukhoi: Superjet 100 Antonov: An-148
  57. 57. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t E-Jets Around the WorldE-Jets Around the World Thank youThank you
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×