Facing a production gap of a year of more between today’s in-production airplane and the entry-into-service of its new model, Embraer is confident it can bridge this gap with little difficulty.
Bundling orders of the E-Jet E1 with the re-engined, re-winged E-Jet E2 will be one way, Claudio Camelier, vice president of market intelligence, told us during the International Society of Transport Aircraft Trading conference in San Diego.
Chief Commercial Officer John Slattery told us he’s charged his sales force to pursue aggressive sales campaigns to add to the customer base, not only with new aircraft but also with used ones, to 100 by EIS of the E-190 E2 in the first half of 2018.
Sales last year to American Airlines, United Airlines and Republic Airways Holdings were important steps in bridging the production gap, Camelier told us. These three companies ordered 177 E-175 E1s, ending 2013 with a stronger position than EMB started the year with. EMB currently produces the E-Jet at a rate of about eight per month, a figure that will be more-or-less maintained for the foreseeable future.
EMB began this year with orders for 25 E-190 E2s and 25 E-195 E2s from India’s Air Costa. A stiff campaign with Bombardier at Air Canada faces off the E2 with the CS300, a contest that many expect will be decided by mid-year, perhaps in time for the Farnborough Air Show. The E2 has a common cockpit with the E1, but the engines, wings, many systems and aerodynamic improvements distinguish the airplanes from each other.
Additionally, the E-195 E2 has three more rows for 12 more passengers, putting some more distance between itself and the E-190. The E-190 and E-195 had only an eight passenger difference, resulting in generally slow sales for the E-195; now it’s 20+, a capacity that should make the E-195 E2 more attractive, Camelier told us.
The larger capacity is more attractive in Europe, where scope clauses in pilot union contracts have passenger capacity limits of 100-105 vs about 76 seats in the USA, Camelier says.
The E-190 E2 is at the end of its first design definition phase and will complete the Preliminary Design Review during the first half of this years.
I think the proposed product strategy is the right one and even its new portfolio build up was expected. A new wing for better range, a longer fuselage & the best engines availabe will guarantee Embraer staying king of the hill in 80-120 seat land for the foreseable future. Not going bigger was a wise decision IMO. The E195 E2 isn’t that small as you state. Its a E200 goeing head to head with the CS100 and 737-7, but no need to wake up sleeping dogs..
It must be frustrating for BBD to see how quickly Embraer was able to gain traction with the E2 series and fill be gab in between.
I think the E2 is lower risk and an easy choice for existing E-jet customers. Ibelieve that this makes the initial orders much easier to come by than for the clean-sheet CSeries.
EMB also has a very large customer base of the E1 to sell into while BBD has to create an entirely new customer base for the CSeries.
btw, Scott contributed to a good CSeries article: