Embraer becomes #3 commercial aircraft company on E-Jet families

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Introduction
Embraer is now the #3 commercial airplane manufacturer, after Airbus and Boeing and supplanting Bombardier, capturing 50% of the orders and 60% of the deliveries in recent years.

We examined the relevancy of the 100-149 seat sector Monday. Embraer is playing an increasingly important role in this sector.

The Brazilian company entered the regional jet field after Bombardier, designing its ERJ (Embraer Regional Jet) to go up against the BBD CRJ (Canadair Regional Jet), at a time when the latter created an entirely new market.

Deciding that the ERJ was no longer competitive, EMB rolled the dice and in the 1990s designed a clean-sheet jet, the E-Jet, that brought mainline cabin standards to the 70-120 seat sector.

More recently, with its CRJs outclassed by the E-Jets, Bombardier took the gamble and designed a clean-sheet CSeries for the 100-149 seat sector, a decision that still draws controversy. With the E-Jet facing economic obsolescence by BBD’s move, this time Embraer decided to bypass a new design and went with an extreme makeover, the re-engined, re-winged E-Jet E2.

Summary

  • Embraer’s E-Jet E2 is less than 50% common to the legacy E-Jet.
  • EMB claims the E2 is as efficient as a clean-sheet airplane for a fraction of the cost to develop.
  • EMB has more than 500 orders and commitments for the new E2.
  • Airbus, Boeing are also-rans in the 125-149 seat sector.
  • Mitsubishi, Sukhoi gaining strength.

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“We need more than one family,” says Embraer COO

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Now open to all Readers. (Nov. 29, 2014)

Introduction
Oct. 15, 2014: Embraer had the opportunity to design a clean-sheet airplane as a successor to the E-Jet to respond to the Bombardier CSeries, with the 100-110 seat CS100 a direct competitor to the E-190/195.

But after Airbus and Boeing launched the A320neo and 737 MAX families, including the small A319neo and 737-7 MAX, officials chose the more conservative play to re-engine the E-Jet at an estimated cost of $1.7bn. An entirely new airplane meant up-sizing to be directly competitive with the CS300 and the Baby Airbus and Boeing. This would have been a crowded field that didn’t make sense.

That said, this is an industry that requires long-term planning. Luis Carlos Affonso, SVP of Operations and COO Commercial Aviation, says Embraer needs more than one family of airplanes. The question is, what becomes the next family.

Summary

  • Re-engining the E-Jet was the best bet for Embraer.
  • Strong customer base provides ready market for the E-Jet E2.
  • Another family of airplanes could be a turbo-prop, taking advantage of Bombardier’s weakeness; or
  • Another family would mean up-gauging into the 130-150 seat or higher sector, the traditional domain of Airbus and Boeing.

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Leeham News launches Premium plan, companion to free content; engineer joins staff

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Leeham News and Comment (LNC) today launched a Premium subscription plan as a companion to free content.

LNC has provided news and commentary since February 2008, providing industry-leading information and insightful analysis, principally focuses on Airbus, Boeing, Bombardier and Embraer but also including emerging challengers to the Big Four OEMs, the leading engine manufacturers, suppliers and airline news.

LNC has been a leading resource of news and comment throughout the commercial aviation industry and its professional followers in the aerospace supply chain, investment analysts and the media.

Since the first of this year, LNC increasingly provided more and more technically-based content. This content is valuable and supplements the industry-leading news and reporting that has been provided since 2008. We are pleased to announce the addition to our staff, Bjorn Fehrm, who focuses on technical evaluation and complements the strategic expertise of Scott Hamilton, the founder of LNC and Leeham Co. consultancy.

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Embraer’s big bet on its largest airplane yet

Introduction

Embraer is days away from the roll-out of its biggest airplane project yet and one that has the potential to make its biggest inroads yet into the global defense market: the KC-390.

Rendering of KC390 tanking two Embraer AMX fighters. Source: Embraer

Rendering of KC390 tanking two Embraer AMX fighters. Source: Embraer

The airplane, with a fuselage cross-section the size of the Boeing 767, challenges the Lockheed Martin C-130, a venerable aircraft that has been updated throughout the decades since it first entered service in 1956. Despite this modernization, Embraer believes the time has come for a modern design and a multi-mission capability that far surpasses that of the C-130, with higher productivity of a jet aircraft vs a four-engine turbo-prop.

KC-390 3D view with main data. Source: Leeham Co

KC-390 3D view with main data. Source: Leeham Co

Summary

  • Embraer sees a market for 728 KC-390s in 77 countries, excluding the US, Russia, China and Europe.
  • The KC-390 is half the price of the Airbus A400M and about the size of the Lockheed Martin C-130.
  • Launched with paid development and an order for 28 aircraft from Brazil to fulfill the country’s unique requirements.
  • Typical mission capabilities will be: Cargo 7 pallets, Displacement of 80 soldiers, air dropping of 86 paratroopers, transporting 1 Black Hawk helicopter or one LAV25 or 3 Humvees, Rescue missions, Air tanking of 2 aircraft or helicopters.
  • The KC-390 flies at M0.8 and will therefore finish missions in two thirds the time of the C-130 Hercules (which flies as M0.5). This will also result in more missions flown per day i.e. more airlift capacity.

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Leeham News undergoing maintenance Tuesday night/Wednesday morning

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As we migrate to a new host, there will be a few days to transfer all the Notifications you have signed up to receive, since this transfer has to be done manually.

Assessing the 100-149 Seat Sector

Introduction
Oct. 12, 2014, (c) Leeham Co.: The 100-149 seat market sector has long been criticized as irrelevant because of a string of poor-selling aircraft. Boeing officials even labeled this a Bermuda Triangle. The critics fail to recognize, however, that except for the Bombardier CSeries and the Embraer E-195 stretch based on a clean sheet design, there hasn’t been an airplane specifically designed for this sector since 1983. That was the British Aerospace BAe-146, which despite being powered initially by poor engines and having a cramped cabin, sold moderately well.

The early derivatives, the Boeing 737 Classic, and the McDonnell Douglas MD-80, did well. (The MD-80, while capable of seating up to 172 in shoe-horn configuration, was principally operated within the 130-150 seat layout.) But as fuel prices increased, derivatives began to lose their appeal because they weren’t optimized for the market. Engines then in use couldn’t keep up with the rising cost of fuel and airframes designed in the 1960s/70s/80s were no longer aerodynamically efficient as required for the changing fuel environment.

Summary
• Until the Bombardier CSeries and Embraer E-Jet, there hadn’t been an airplane specifically designed for the sector since 1983.
• Engine technology and airframe aerodynamics didn’t keep up with the demands of rising fuel prices for derivative designs.
• Airbus and Boeing are ceding the sector.
• Bombardier and Embraer will “own” the sector.
• There is a valid market for the 100-149 seat sector.

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Odds and Ends: AA swapping A319s for A321s; Cancelled orders; CSeries; CFM LEAP enters flight testing

American swaps A319s for A321s: This is what Flight Global reports.  AA placed a large order to the Airbus A319ceo in 2011 but, having since merged with US Airways which has a large number of the small Airbus that can be redeployed on AA routes, the combined carrier will instead upgauge to the A321, Flight reports.

AA will take 28 A319ceos instead of the anticipated 65.

Cancelled orders: Aviation Week has a blog item listing a bunch of orders placed by airlines that were cancelled before delivery. AvWeek acknowledges the list is hardly all-inclusive. So, Readers, how about adding to the list? Let’s go all the way back to 1945, and this can be globally. We’ll start with American Airlines and Pan Am canceling the Republic Rainbow.

CSeries: Bombardier posted a video update of the CSeries FTV 4 tour to customer Republic Airways Holdings here.

CFM LEAP: The CFM LEAP-1C, the engine launched for the COMAC C919, entered flight testing. Reuters has this story and Aviation Week has a similar piece.

 

 

New and Derivative Airplanes: Some good, some not: Part 2

Part 2 of two parts.

With multiples and multiples of billions of dollars at stake to develop new airplanes, and the billions of dollars of cost overruns at risk, it’s understandable the Airbus and Boeing are shifting to looking at derivatives and incremental improvements now for the lower-risk and ability to “harvest” technology across family lines.

This is hardly new. Airframers have been doing this since the Douglas DC-1 prototype begot the DC-2, which led to the DC-3. The Douglas DC-4 was the basis for the DC-6 and DC-7, for which there were A, B and C versions. Lockheed revamped the L-049 Constellation through several major upgrades (the -649, 749, 1049 and 1649, with several sub-sub-types in between). Convair created the CV-240 and revised it twice with the CV-340 and 440. The Martin 202 became the 303 (dumped after design issues with the 202) and the 404.

The trend continued into the jet age. Douglas created the DC-8-10/20/30/40/50 on the same basic airframe and really went to town with the DC-8 Super 60 Series. The DC-9-10 became the -20/30/40/50, the Super 80 (in four variants) and the basis for the MD-90 and MD-95. Boeing’s ground-breaking 707-120 became the 138/227/320B/C, the 707-020 (more commonly known as the 720), the C-135/KC-135 and a number of other military variants. The fuselage was the basis of the 727, 737 and 757. And so on. (Text continues below the photo.)

Later this month, we will unveil a new, updated Leeham News and Comment with a combination of paid and free content. Watch this space for more information.

Later this month, we will unveil a new, updated Leeham News and Comment with a combination of paid and free content. Watch this space for more information.

European manufacturers of the early jet age followed the same pattern. There were four commercial versions intended for the deHavilland Comet. The Hawker Siddeley came in multiple versions, as did the British Aircraft Corp. BAC-111.

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New and Derivative airplanes: Some good, some not; Part 1

First of two parts.

Earlier this year, Airbus officials said they will concentrate on improving existing airplanes once the A350 enters service.

Boeing followed by saying it would not take any “moonshots” and develop new airplanes, at least for some indeterminate time.

The sentiment on the part of both companies is understandable if not disappointing for aviation purists who want to see new and innovative airplane models rather than made-over sub-types.

This is one of those cases where both schools of thought are right. (Text continues below photo.)

Later this month, we will unveil a new, updated Leeham News and Comment with a combination of paid and free content. Watch this space for more information.

Later this month, we will unveil a new, updated Leeham News and Comment with a combination of paid and free content. Watch this space for more information.

New airplanes are, to state the obvious, very expensive to develop and in this increasingly technological age and demand for “smarter” airplanes that are more fuel efficient and which try to improve passenger experience while cramming as many revenue-paying passengers into the airplane as possible, becoming more and more challenging. Where it once was possible to bring an airplane to market within four years of launch, today airframers routinely look at seven years and even eight. Even derivative airplanes are now taking six or seven years to enter service from launch.

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Assessing the 70-90 seat regional jet sector

Introduction

Major orders last week for Bombardier and Mitsubishi and the release of the Airbus Global Market Forecast provide an opportunity to look at market segments that don’t get a lot of attention in the shadow of the greater focus on the A320/737 and medium-twin aisle sectors.

These over-shadowed sectors are the 70-99 seat regional jet; the 100-149 seat single-aisle market; and the Very Large Aircraft.

Due to the scope and length of each examination, we will detail these sectors in three parts.

Summary

• Embraer and Mitsubishi will dominate the 70-99 seat sector;
• Embraer and Bombardier will dominate the 100-149 seat sector;
• Airbus and Boeing have largely withdrawn from the 100-149 seat sector;
• Airbus clings to unrealistic 20-year forecast in the VLA sector, but Boeing is a non-player today and in the future.

Part 1: 70-99 Seat Sector
This is a shrinking market for the regional jet as increasing fuel prices make it more and more difficult for regional jets to be economical. Nonetheless, there are several established and new entrant players in the market:

• Bombardier, with the CRJ-700, CRJ-900 and CRJ-1000
• Embraer, with the in-production E-170/175 and E-190/195
• COMAC/AVIC, with the ARJ-21 70 and 90-seat models
• Mitsubishi, with the MRJ-70 and MRJ-90
• Suhkoi, with the SSJ-100

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