While touting the smooth progress of its in-development E2 family of 70- to 130-plus-seat single-aisle airliners, here at Farnborough Embraer continued to voice concern about the government financial assistance Canadaâs Bombardier received earlier this year for its then-stalled C Series single-aisle program. Meanwhile, the Brazilian manufacturer announced new orders and letters of intent (LoIs) for its E2 airliner program from several customers, worth well over $1 billion if all options are exercised.
âWe are against subsidies that will bring distortion to the market,â said Paulo Cesar Silva, CEO of the Brazilian aerospace manufacturer, adding that the government assistance âgoes in this direction.â Pointing to Bombardierâs recent C Series sales to Delta Airlines and Air Canada, Silva said it appeared Bombardier was âtaking money from Canadian taxpayers in order to provide aircraft below costâ to the airlines, and added, âWe are very disappointed and very worried about that strategy.â
Silva said manufacturers need healthy profits to maintain quality and invest in future programs, and that selling aircraft below cost endangers the entire industry. As for any action Embraer may take, Silva said, âWe are looking into that; there is a mechanism, the WTO [World Trade Organization], but we need more information, more details on specifics of this transaction in order to build a case.â Silva, who became CEO on July 1 after heading Embraerâs Commercial Aviation division, said his company is âtalking to the Brazilian government,â which is also concerned. âItâs still too early to say what will be the next steps regarding this issue,â Silva said.
Nonetheless, the company reported impressive orders here for E2 family aircraft.
Kalstar Aviation, an Indonesian regional operator, signed a firm order five E190-E2s and purchase rights for an additional five, with an estimated value of $582 million at current list price if all 10 are bought. Deliveries are expected to begin in the first quarter of 2020.
Arkia Israeli Aviation signed a Letter of Intent (LoI) for six firm orders and four purchase rights for E195-E2s, representing $650 million in revenue with all orders executed. The first flight of the E195-E2 is expected in the second half of next year.
Nordic Aviation Capital (NAC) placed a firm order for four E190s with an estimated value of $199 million. The new aircraft are destined to join a fleet that includes 69 E-Jets at present, which are leased to airlines around the world.
Meanwhile, Japan Airlines has converted an option for an E170 into a firm order for an E190, joining the eight E190s the carrier currently has on order. That brings total E-Jet orders to more than 1,700, with more than 1,200 delivered, according to the company.
Embraer (Outdoor Exhibit 6) also released its 2016-2035 Market Outlook here, which projects market demand for 6,400 new jets in the 70- to 130-seat category over the next 20 years, with the global fleet growing from 2,670 of the aircraft at the end of last year to 6,690 by 2035. That makes this segment the fastest growing among all aircraft seat categories, according to the outlook, and Embraer intends to remain the dominant player in the market. âWe want to maintain 60 percent of [market] share over the next 20 years,â said Luis Carlos Affonso, the commercial divisionâs COO.
In total, E2 jets now have 272 firm orders and 398 LoIs, options and purchase rights, said John Slattery, who has succeeded Silva as Embraerâs president and CEO of Commercial Aviation.