Feb. 24, 2016, © Leeham Co., Sao Jose dos Compos: The focus over the next two years will be the on-time entry into service of the E2 family, said John Slattery, chief commercial officer of Embraer.
If achieved, this will be in marked contrast to recent new aircraft programs at Airbus, Boeing and Bombardier.
The E2 is close to a clean sheet airplane with all the changes, especially the “right-sized” wing for each of the family members, he said.
The EJet family now has 1,704 net orders, including 267 firm orders for the E2. The broad customer base is now more than 70.
“I am indifferent whether these are used or new aircraft,” Slattery said. There is a “seismic” shift in North America about the use of 100 seat aircraft at mainline carriers. The move by Delta Air Lines to add 20 used E190s into mainline service is driven by chasing profits and not market share, he said.
“We’re feeding the backlog in a sustainable way with robust credits,” Slattery said. “We want to be on every continent and we’re chasing the big brands. This speaks to residual values and helps us when we want to sell aircraft to new jurisdictions.”
Embraer has many “incumbents and insurgents” yet Embraer has 60% of the deliveries and 52% of the sales.
EMB has 83% penetration in North America, Slattery said. The company has more than 80% market share in China, and Asia will be a major area of market growth.
There is a need for 2,385 direct replacements in Embraer’s market, including 755 in the 50 seat sector; 725 for right-sizing, 110 for turboprop replacements, 250 for low cost carriers in Asia and Europe, 400 in regionals in China and Brazil and 460 100-seaters in the USA.
Slattery said the need for turboprop replacement may be low.
He said that many city pairs for LCCs can only be profitably served with smaller jets like the EJet.