Quotations are paraphrased.
Feb. 11, 2015: You can market share from sales. We don’t make revenues from sales but from deliveries, says John Slattery, chief commercial officer for Embraer. EMB dominates in deliveries, he said at the Pacific Northwest Aerospace Alliance conference today in Lynnwood (WA).
- The competition has a lot of sales but few deliveries, he said.
- EMB has 82% of the sales of the E175 in North America vs 18% for Bombardier’s CRJ700.
- Arguably there is one competitor in EMB business case that launched an airplane without a firm business case. Fokker, Fairchild-Dornier went out of business with poor business cases.
- Incumbency is very important for future sales. EMB has solid incumbency.
- We were able to improve performance of E175 E2 and forego the E170 when going to E2 program. E170 was a hot-high airplane. E175 E2 has economics of large turboprops.
- Advisory boards said capacity of E190 was good, so don’t change for E2. E195 was too close to E190, so added three rows to E2. E195 E2 now accounts for 50% of the 190/195 E2 orders, much better than with E1.
- Calls the PW GTF engines on E2 “super star engines.” By the time GTF gets to EMB (for 2018 EIS), it will have accumulated 2.5m hours.
- GTF problem last year, with the delay, eliminates advantages competitor (Bombardier, with the CSeries) had.
- EIS dates early 2018, 2019, 2020 for 190E2, 195E2, 175E2 respectively.
- 590 commitments for E2. Customer base have a lot of confidence in EMB as opposed to some competitors. We’re like banks, ours is a business of confidence. If you have confidence, you will probably give us your money.