Houston's Magnum Jet Orders 50 VLJs, Options For 50 More

Embraer told Aero-News Thursday about a huge order for its upcoming Phenom 100 executive jet. Houston-based Magnum Jet has ordered 50 of the very-light jets, with options for an additional 50 aircraft. The contract allows Magnum Jet -- a company formed was to bring Very Light Jets to market -- to convert its positions into either the Phenom 100, or the larger Phenom 300.

The contract is valued at $137.5 million at list price in January 2005 economic conditions, with a potential of reaching $275 million if all options are converted into the Phenom 100. The new jet is expected to enter service in mid-2008. Magnum Jet is scheduled to take delivery of its first aircraft in early 2009.

Embraer included this contract in the previously announced order backlog of June 30, 2006, which consists of firm orders for over 235 Phenom jets.

"Embraer carefully studied the emerging very light jet market prior to launching their new Phenom 100 jets. We believe that Embraer's design for the Phenom 100 delivers operating capabilities and an interior design that will appeal to prospective owners and will offer a comfortable and efficient travel experience for future passengers. The design of the Phenom 100, together with Embraer's reputation for quality and reliability makes this new jet an integral part of Magnum's plans for the future," said Jim Burns, Magnum Jet’s CEO. "Combined with their great reputation for quality and durability, the Phenom’s fit our business model extremely well."

"Embraer is honored by Magnum Jet’s selection of the Phenom 100 and is pleased to offer the right-sized solution for its business. Designed for high utilization and low-cost operation, the Phenom jets will deliver premium comfort without sacrificing performance and prove to be a great profitability tool. The potential for these new jets in North America has already proven to be significant and we believe Magnum Jet’s innovative offering will be very appealing to this market," said Luís Carlos Affonso, Embraer Executive Vice-President, Executive Jets. "We consider it a privilege to commence this relationship with Magnum Jet and look forward to a successful history together."

Embraer's Phenom 100 and Phenom 300 are designed for at least 35,000 and 28,000 cycles of operation, respectively. Although business jets typically operate around 500 hours per year, the Phenom jets’ design philosophy of high availability and reliability is the same as that of the ERJ-145 and Embraer 170/190 family of regional airliners, designed to operate well over 2,000 hours per year.

Magnum Jet will offer a turn-key ownership and comprehensive management program for Very Light Jet owners, and will operate a unique air limousine service for regional travel.

FMI: www.embraerexecutivejets.com, www.magnumjet.com