Tag Archives: Embraer

Nordic Aviation Capital (NAC) becomes the launch lessor for Embraer’s E-Jet P2F – Passenger-to-Freighter – program

Embraer issued this statement:

Nordic Aviation Capital (NAC) is a launch lessor for our E-Jet P2F – Passenger-to-Freighter – program announced in March 2022. NAC, the world’s largest regional aircraft lessor, will convert up to 10 of its fleet of E190s and E195s to freighter aircraft.

The E190F and E195F are perfectly sized for new revenue-generating opportunities.The E-Jet Freighters will have over 50% more volumetric capacity, three times the range of large cargo turboprops, and up to 30% lower operating costs than narrowbodies.

The conversions will be completed at Embraer’s facilities in Brazil. NAC’s first P2F E-Jet is scheduled for delivery in 2024.

Embraer enters the freighter business

Embraer made this announcement:

We’ve just launched a new freighter program that will right-size the cargo industry with E-Jets.

In response to the explosive growth in e-commerce and increased demand for cargo capacity, especially to smaller markets, we’ve developed a program to convert pre-owned E190s and E195s from passenger jets to freighters. First deliveries are planned for 2024.

Rather than simple quick-change procedures in which seats are removed from passenger cabins, our E-Jet freighters have structural modifications. Over head bins are removed, there are new smoke detection and fire suppression systems, the main deck floor is reinforced and has a cargo handling system, and there is a new forward cargo door.

What really makes the E-Jet freighters attractive is their ability to offer optimized loading configurations. Cargo carriers can therefore maximize efficiency by better matching capacity to demand. The E-Jet freighters offer greater frequency and better operating economics in smaller markets than larger aircraft.

How much can our E-Jets freighters carry? Combining under-floor bulk cargo and main deck ULD or pallet capacity, the weights and volumes are impressive:

cargo

The range and payload capacity of the E195F is similar to the B737-300SF (nearly 2,500 nm) yet the E195F burns less fuel, generates fewer emissions, and has lower maintenance and cash operating costs.

Our E-Jet freighter conversion program is another example of an innovative solution to an emerging market opportunity. They are, in fact, bringing the concept of right-sizing to the cargo industry by tapping the gap between turboprop and larger narrow body freighters.

Cargo airlines can now put right-capacity E190F and E195F freighters on the right routes with the right frequency and right economics. Moreover, airlines can now access new smaller markets while deploying their larger aircraft on routes where they are more economical.

Embraer pauses the E175-E2 Jet Development Program

Embraer issued this statement:

Embraer S.A., in compliance with the CVM Resolution 44/2021, informs its shareholders and the market that on February 18 the Board of Directors approved a three-year pause in its E175-E2 jet development program.

As in previous years, the re-programing of activities is associated with the ongoing US mainline scope clause discussions with the pilot unions regarding the maximum take-off weight (MTOW) limitation for aircraft with up to 76 seats, together with current global market conditions for commercial aviation and the continuing interest in the current E175 jet in the US market.

The Company expects to resume the program development activities following the aforementioned period, which will result in a re-programming of the aircraft entry into service between 2027 and 2028.

Embraer, Widerøe and Rolls-Royce announce partnership to research innovative technologies for sustainable regional aircraft

Embraer, Widerøe and Rolls-Royce have today announced plans to study a conceptual zero-emission regional aircraft. The 12-month cooperation study – in the context of pre-competitive research and development – will address passenger requirements to stay connected in a post Covid-19 world, but do so sustainably, and seeks to accelerate the knowledge of the technologies necessary for this transition. Such technologies will allow national governments to continue to support passenger mobility while reusing most of the existing infrastructure in a more sustainable way.

Advances in scientific research can make clean and renewable energy a major enabler of a new era of regional aviation and the three companies will share their combined in-depth knowledge of aircraft design, market demand, operations and propulsion solutions to further develop their understanding of zero-emission technologies and how they can be matured and applied to future regional aircraft.

Among other topics, the study will cover a wide range of applications for new propulsion technologies to examine a range of potential solutions – including all-electric, hydrogen fuel cell or hydrogen fueled gas turbine powered aircraft.

SkyWest Airlines orders eight new E175 aircraft for operation with Alaska Airlines

Embraer has agreed to the sale of eight new E175 jets to SkyWest, Inc. for operation with Alaska Airlines, adding to the 32 SkyWest E175 jets SkyWest already flies for Alaska. The E175 aircraft will fly exclusively with Alaska Airlines under a Capacity Purchase Agreement (CPA).

Alaska Airlines, a new member of the oneworld Alliance, currently has 62 Embraer E175 jets in their fleet, operated by Horizon Air and SkyWest Airlines. The 76-seat aircraft will be delivered in Alaska’s livery and three-class configuration, starting in 2022.

Embraer claims Boeing “wrongfully terminated the MTA”

Embraer has issued this statement:

Embraer S.A., in compliance with the provisions of the CVM Instruction 358/02 and in connection with the strategic partnership between Embraer and The Boeing Company, informs its shareholders and the market that Embraer received a notice sent by Boeing communicating its decision to terminate the Master Transaction Agreement, based on Boeing’s assertion that supposedly certain closing conditions in the MTA have not been satisfied by Embraer.

Embraer strongly believes that Boeing has wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price. Embraer believes Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.

Embraer believes it is in full compliance with its obligations under the MTA and will pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA.

The Transaction involved a long, costly and complex process, which was supported by government authorities and the substantial majority of Embraer’s shareholders, all understanding that the Transaction would be in the best interest of Embraer, its employees, suppliers and customers in commercial aviation.

Embraer remains today a successful, efficient, diversified and vertically integrated company, with a history of serving customers with highly successful products and services built on a strong foundation of engineering and industrial capabilities. Embraer is an exporter and technology developer, with global presence and defense, executive and commercial businesses. Our employees will proudly continue to provide for our clients the high quality products and services they depend on from Embraer every day.

Embraer’s history of over 50 years is lined with many victories but also some difficult moments. All of them were overcome. And that’s exactly what Embraer is going to do again. Embraer shall overcome these challenges with strength and determination.

Embraer will keep its shareholders, the market in general, and all employees, suppliers and clients informed about any relevant updates.

Boeing terminates agreement to establish joint ventures with Embraer

Boeing has made this announcement:

Boeing announced today that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.

Under the MTA, April 24, 2020, was the initial termination date, subject to extension by either party if certain conditions were met. Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions.

“Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, president of Embraer Partnership & Group Operations. “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”

The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.

Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.

Embraer and SkyWest, Inc. sign contract for 20 E175 jets

Embraer and SkyWest, Inc. signed a firm order for 20 E175 jets in a 76-seat configuration. The order has a value of USD $972 million, based on 2019 list prices, and is already included in Embraer’s 2019 fourth-quarter backlog. Deliveries are expected to begin in the second half of 2020.

Embraer’s relationship with SkyWest dates back to 1986, when SkyWest began operating the EMB 120 Brasilia turboprop.

With this additional order for the E175, SkyWest has purchased more than 180 aircraft of this model since 2013 alone.

 

Boeing and Embraer welcome Brazilian approval

Boeing and Embraer welcome the unconditional approval of their strategic partnership by the Administrative Council for Economic Defense (CADE)’s General-Superintendence (SG) in Brazil. The decision will become final within the next 15 days unless a review is requested by CADE Commissioners. The partnership has now received unconditional clearance from every regulatory jurisdiction with the exception of the European Commission, which continues to assess the deal.

“This latest clearance is yet another endorsement of our partnership, which will bring greater competition to the regional jet marketplace, better value for our customers and opportunities for our employees,” said Marc Allen, Boeing’s president of Embraer Partnership & Group Operations.

Brazil’s approval of the deal is a clear demonstration of the pro-competitive nature of our partnership,” said Francisco Gomes Neto, president and CEO of Embraer. “It will not only benefit our customers, but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole.”

Unconditional clearance has now been granted in Brazil, United States, China, Japan, South Africa, Montenegro, Colombia, and Kenya.

Boeing and Embraer have been in discussion with the European Commission since late 2018, and continue to engage with the Commission as it proceeds through its assessment of the transaction.

“We have been productively engaged with the Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome,” Boeing’s Allen said. “Given the positive endorsement we’ve seen from customers across Europe and the unconditional clearance we’ve received from every other regulator who has considered the transaction, we look forward to securing final approval for the transaction as soon as possible.”

The planned strategic partnership between Embraer and Boeing comprises two joint ventures: one joint venture made up of the commercial aircraft and services operations of Embraer (Boeing Brasil – Commercial) in which Boeing will own 80 percent and Embraer will hold 20 percent; and another joint venture to promote and develop markets for the multi-mission medium airlift C-390 Millennium (Boeing Embraer – Defense) in which Embraer will own a 51 percent stake and Boeing will own the remaining 49 percent.

KLM Cityhopper firms up order for Embraer E195-E2 jets and adds six further aircraft

Embraer and KLM Cityhopper have signed a firm order for 21 E195-E2 aircraft, plus 14 purchase rights. The 21 firm positions will be acquired via operating lease from Embraer lessor partners Aircastle and ICBC Aviation Leasing. The order was previously announced as a Letter of Intent for 15 firm orders with 20 purchase rights at the Paris Air Show earlier this year. With all purchase rights exercised the deal would have a value of $ 2.48 billion.

The aircraft for this order will come from the existing backlogs of lessors Aircastle and ICBC Aviation Leasing; each providing KLM with 11 and 10 E195-E2s, respectively.

KLM will configure the aircraft with 132 seats. Deliveries will begin in the first quarter of 2021.