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.