Predicts Business Will Be Back To "More Normal" By 2012

Like the entire aircraft sector, Embraer has been negatively impacted by the worldwide economic downturn. But at a news conference at AirVenture 2009 Wednesday morning, North American VP for Marketing Ernest Edwards said there are signs of recovery, and that Embraer expects to be seeing a business model that is "more normal" by 2012.

Ernest Edwards

"2009 is going to be a bleak year," Edwards said at the top of the new conference. But he did say that he expects to see a resurgence in U.S. GDP, returning to "normalcy" by 2012. He cited what could be interpreted as recovery in U.S. financial markets, with the Dow hovering around 9,000. "The slide in business jet traffic seems to have abated," he said, but fractional sales continue to decline. The used jet market is also showing a slow reduction in inventory, according to Edwards, particularly in the 10 years old and younger sector.

In all, Edwards concluded that Embraer expects GDP to be "back to more normal business by 2012." He said Embraer anticipates the industry selling some 5,400 aircraft in the next 10 years, representing $88 billion in sales in the North American market, which includes the U.S., Canada, Mexico, and the Caribbean.

Edwards then turned to discussion of the various aircraft. Embraer has delivered 25 of it's Phenom 100 4-place jets, most of them to the North American market. There are 4 prototype models of the Phenom 300 flying, and the company has just completed testing for natural icing and crosswinds. Certification of the Phenom 300 is expected by year's end, with a starting price of about $6.85 million in 2005 dollars. He said Embraer has firm orders for 800 Phenom 100 and 300 aircraft. This year alone, Embraer says it expetcts to deliver 110 Phenoms, most of them the 100 model, but some 300's are on that list.

Phenom 100 File Photo

The legacy 450 continues under development, with the suppliers selected for the airframe and other components of the aircraft, and the company expects the Legacy 500 will be ready for deliveries in 2012 as well,

Edwards said the company, which is celebrating it's 40th year overall and 30 in the United States, thinks it's important to be at Oshkosh. "Response to the airplanes on static display has been fantastic," he said, and that Embraer expects to be at AirVenture for many years to come.

FMI: www.embraer.com