Embraer continues and refines its strategy at the low-end of 100-149 seat sector

While Airbus and Boeing slug it out in the competition for the duopoly and Bombardier struggles to gain respect as an emerging mainline jetliner producer, Embraer continues and refines its strategy in the smaller-end of the jet market with its E-Jets, E-Jet “Plus” (our term) and the E-Jet E-2.

Source: Embraer, Reprinted with permission.

Source: Embraer, Reprinted with permission.

Embraer is broadening its offering from a maximum of 122 seats to a maximum of 132 and dropping its low-end E-170 from future variants. This brings the EMB family to 90-132 seats, following the decision to undertake an extreme makeover of the current E-175/190/195 line by adapting the Pratt & Whitney P1000 Geared Turbo Fan engine to a new wing design and upgrading a variety of systems in the E-Jet E2.

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 Source: Embraer. Reprinted with permission.

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Odds and Ends: EMB, BBD split AA order; WTO on Airbus subsidies; IAM, Boeing bargaining; KC-46A

EMB, BBD split American order: Embraer took the lion’s share of the long-awaited order from American Airlines for regional jets. EMB won 60 firm orders and 90 options for the E-175 and Bombardier won 30+40 CRJ-900s. Flight Global points out that none seem to be going to American Eagle.

The order is welcome by both OEMs, which had gaps in their respective production lines.

WTO on Airbus subsidies: Bloomberg News reports that the World Trade Organization won’t rule until the end of next year on a US complaint that Airbus failed to comply with WTO findings that it received illegal subsidies. (No link available).

Bloomberg writes, The EU says it had secured repayment of some $2.3 billion in launch-aid loans and terminated the launch-aid loan agreements in question, while also addressing subsidies given in the form of capital contributions, infrastructure support and regional aid.(Emphasis added.)

     The U.S. counters that the largest launch-aid subsidies—for the A380, Airbus’s super jumbo jet—remain in place and that the actions the EU claims to have taken with respect to earlier subsidies “appear to do nothing to withdraw them, or to remove their adverse effects.”

As we’ve written, Boeing is now requesting essentially the same thing in its Request for Proposals for the 777X site selection.

IAM, Boeing bargaining: It’s a relief to see Boeing and the International Association of Machinists District 751 bargaining for a new contract amendment for the 777X site selection, but no deal is imminent. The Seattle Times reports things could move quickly, however.

First KC-46A airframe, wings joined: Aviation Week has this story about the progress of Boeing’s KC-46A tanker program.

Busy Week ahead: First flights; and Odds and Ends:Lufthansa to split order; Embraer tells of upgrades

Update, 2:30PM PDT: Boeing confirms that Tuesday is the target day for 787-9 first flight, time TBD and subject to weather and other factors.

Update, 3:30pm PDT: Bombardier says 9:30 EDT Monday is the scheduled first flight for CSeries. Twitter follow is #CSeries

Original Post:

It looks like it will be a busy week in aviation news. Bombardier plans the first flight of the CSeries tomorrow, weather permitting (it looks good). Exact time hasn’t been announced. Reuters reports Boeing plans the first flight of the 787-9 Tuesday, though we haven’t seen notice from Boeing on this yet. And we’re waiting any day for Lufthansa Airlines to announce its long-awaited wide-body order.

Lufthansa said to split order: Lufthansa Airlines reportedly will split its order for widebody airplanes between Boeing and Airbus, according to this Bloomberg report.

Embraer EJet improvements: Flight Global has this story about the improvements and another about production rates.

Air Force One: The Seattle Post-Intelligencer has a 42 slide photo display of Air Force Ones, past to present, that’s quite interesting.

Update: “Small Airbus:” If you listen carefully, someone at the end of the video notes that the CSeries “looks like a small Airbus 320.” We couldn’t help but chuckle at this.

Odds and Ends: Boeing ponders 787 rate hike; A350 fly-by at PAS?; EMB wins order for E-Jet

787 Rate Hike: Boeing CEO Jim McNerney acknowledged the company is considering a production rate hike for the 787. Readers here know we’ve been saying for months this is necessary for the 787-10 and to open up delivery slots for customers for the other sub-types.

A350 fly-by at PAS? Will the Airbus A350 make an appearance at the Paris Air Show after all? Is the Pope Catholic? Speculation is rampant that it will happen.

Embraer wins order for E-Jet: Embraer picked up an order for 40 E-175s from SkyWest Airlines, for operation on behalf of United Airlines.

Embraer selects PW GTF for E-Jet RE; concept clarity comes at last

It’s official: Embraer selected the PW GTF to re-engine the E-175, E-190 and E-195.

In doing so, it looks like the E-170 will be allowed to wither on the vine.

This is a huge win for PW and setbacks for Rolls-Royce, which sorely wanted to win the E-Jet RE for its Advance 2 RR development; and for GE, the incumbent supplier of the CF34 and which was developing the Next Generation variant for the E-Jet.

EMB EJet RE

It’s yet another validation for the GTF. Versions of this engine will power the Mitsubishi MRJ, the Bombardier CSeries, the Irkut MS-21, the Airbus A320neo family and now the E-Jet RE.

It’s a huge comeback for PW, which made a major strategic error in not competing to power the Boeing 737 300/400/500. Boeing continues to use the GE/CFM LEAP engine as its sole-source supply for the 737 MAX, though Boeing seriously evaluated the GTF as well.

Below is EMB’s press release:

Embraer Selects Pratt & Whitney’s PurePower Engines for Second Generation of E-Jets

São José dos Campos, January 8, 2013 – Embraer SA (NYSE: ERJ; BM&FBOVESPA: EMBR3) announced today that Pratt & Whitney´s PurePower® Geared TurbofanTM engines have been selected for its future, second generation of E-Jets, with entry into service planned for 2018. The decision is an important milestone in the program, which is expected to be officially launched later this year.

The new engines – the PW1700G and PW1900G – range in thrust from 15,000 to 22,000 pounds. In combination with new aerodynamically advanced wings, state-of-the-art full fly-by-wire flight controls and other systems evolutions, they will result in double digit improvements in fuel burn, maintenance costs, emissions and external noise.

“We are very happy to expand our partnership with Pratt & Whitney, keeping the E-Jets family as the best solution for our customers, today and in the future”, said Frederico Fleury Curado, President & CEO of Embraer. “The PurePower GTF engines are a great fit to the next generation of our E-Jets and we look forward to another long lasting and successful program with Pratt & Whitney”.

“We are proud that Embraer has recognized the unmatched value of the PurePower engine, and we are committed to supporting a successful launch of the new E-Jet aircraft family,” said Pratt & Whitney President David Hess. “To date, Pratt & Whitney has completed more than 4,200 hours and 12,400 cycles of full engine testing for the PurePower engine family, demonstrating the benefits and reliability of the engine architecture.” Pratt & Whitney is a division of United Technologies Corp. (NYSE: UTX).

The second generation of E-Jets will be a significant step in Embraer´s commitment to continuously invest in this line of commercial jets, complementing a series of ongoing improvements currently being implemented in the existing family, with great benefits to its customers. Embraer´s objective is to offer the best product and maintain its leadership in the 70 to 120 seat market.