Tag Archives: Embraer

Reuters: Boeing drops Embraer name from Brazil commercial jet division

From Reuters:

“Boeing Company on Thursday said that after taking over Brazilian planemaker Embraer SA’s passenger jet unit, it will call the division Boeing Brasil – Commercial, dropping one of Brazil’s most iconic company names.

The name change comes after Boeing agreed to pay $4.2 billion to buy 80% of Embraer’s operation making passenger jets with fewer than 150 seats. Embraer will retain a 20% stake. That division is still Embraer’s most profitable and considered a gold standard of Brazilian engineering.

Boeing has not made a decision yet about whether to rebrand the small and mid-sized planes, which currently carry the Embraer name followed by a model code.”

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Embraer E195-E2 granted certification by ANAC, FAA and EASA

Embraer has issued this statement:

At a ceremony held today at the Company’s facilities in São José dos Campos, Embraer received the Type Certificate for the E195-E2 from three regulatory authorities: ANAC, the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil); the FAA (U.S. Federal Aviation Administration) and EASA (European Aviation Safety Agency).

The E195-E2 is the biggest of the three members of the E-Jets E2 family of commercial airplanes and the largest commercial aircraft Embraer has ever made.

“Just like the E190-E2, we once again obtained type certification simultaneously from three major world regulatory authorities,” said Paulo Cesar de Souza e Silva, Embraer President & CEO. “This is another great achievement from our engineering and program teams. They’ve built, and now have certification for, the most efficient single-aisle jet on the market. And they’ve done it again right on schedule and exceeding specification.” “Our flight tests confirmed that the aircraft is better than its original specification. Fuel consumption is 1.4% lower than expected – that’s 25.4% less fuel per seat compared to the current-generation E195.

Maintenance costs are 20% lower,” said John Slattery, President & CEO, Embraer Commercial Aviation. “There’s no question that airlines are going to love this airplane’s economics. The E195-E2 is the ideal aircraft for growing regional business and complementing existing low-cost and mainline fleets.”

Embraer ERJ 190-400STD (E195-E2) PR-ZIQ (msn 19020041) FLL (Bruce Drum). Image: 104598.

Above Copyright Photo: Embraer ERJ 190-400STD (E195-E2) PR-ZIQ (msn 19020041) FLL (Bruce Drum). Image: 104598.

The E195-E2 will enter service in the second half of 2019 with Azul Linhas Aéreas Brasileiras S.A. Binter Canarias, of Spain, will also receive its first E195-E2 in 2019.

Embraer used two prototype aircraft in the E195-E2 certification campaign, one for aerodynamic and performance tests, the other for the interior and validation of maintenance tasks.

The E195-E2 is the most environmentally friendly aircraft in its class. It has the lowest levels of external noise and emissions. The cumulative margin to ICAO Stage IV noise limit ranges from 19 to 20 EPNdB, 4.0 EPNdB better than its direct competitor.

Like the E190-E2, the E195-E2 has the longest maintenance intervals in the single-aisle jet category with 10,000 flight hours for basic checks and no calendar limit for typical E-Jet operations. This means an additional 15 days of aircraft utilization over a period of ten years compared to current generation E-Jets.

The E195-E2 features new ultra-high bypass ratio engines, a completely new wing, full fly-by-wire and new landing gear. Compared to the first-generation E195, 75% of aircraft systems are new. The E195-E2 has 3 additional seat rows. The cabin can be configured with 120 seats in two classes, or up to 146 in single class.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft by operating across a range of business applications.

E195-E2 Performance Improvements E195-E2 performance targets were to be similar to the E195 but with more payload (12 more passengers). The final results, however, show significant improvements in many areas. Range – Maximum range is 2,600 nautical miles with a full passenger load, 600 nm more than the E195. Restricted Airports – The E195-E2 can serve more markets from limited airfields.

From Denver, the aircraft’s range is more than 900 nm longer than the E195. From Santos Dumont, the gain is more than 500 nm. Take Off Field Length – At MTOW, the E195-E2 requires only 1,800 m (2,180 m for the E195.)

Air Peace selects the Embraer E195-E2 and becomes the first E2 operator in África

Embraer ERJ 190-400STD (E195-E2) PR-ZIQ (msn 19020041) FLL (Bruce Drum). Image: 104598.

Embraer has signed a firm order for 10 E195-E2 jets with Air Peace, Nigeria’s largest airline. The order was announced today, during the Embraer’s Africa Airline Business Seminar, in Mauritius.

With this order, Air Peace will become the first E-Jets E2 operator in Africa. The contract includes purchase rights for a further 20 E195-E2. With all purchase rights being exercised, the contract has a value of USD 2.12 billion, based on current list prices. The order will be included in Embraer’s 2019 second-quarter backlog.

Air Peace has grown rapidly since it commenced flight operations in 2014 and is now the largest airline in West Africa. The airline intends to address the significant untapped demand in the African market with the E195-E2, the newest, most efficient, and most comfortable aircraft in the segment.

Air Peace subsidiary, Air Peace Hopper, started operating six Embraer ERJ145 last year on short thin routes. That experience with Embraer’s products, and the undeniable economic benefits of right-sizing aircraft for the mission, was a key factor in selecting the E2.

Top Copyright Photo: Embraer ERJ 190-400STD (E195-E2) PR-ZIQ (msn 19020041) FLL (Bruce Drum). Image: 104598.

 

Boeing-Embraer partnership receives shareholder approval

Boeing has made this announcement:

The proposed strategic partnership between Boeing and Embraer was approved today by Embraer’s shareholders during an Extraordinary General Shareholders’ Meeting held at the company’s headquarters in Brazil.

At the special meeting, 96.8 percent of all valid votes cast were in favor of the transaction, with participation of approximately 67 percent of all outstanding shares. Shareholders approved the proposal that will establish a joint venture made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company, and Embraer will hold the remaining 20 percent.

The transaction values 100 percent of Embraer’s commercial aircraft operations at $5.26 billion, and contemplates a value of $4.2 billion for Boeing’s 80 percent ownership stake in the joint venture.

Embraer shareholders also agreed to a joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

“This groundbreaking partnership will position both companies to deliver a stronger value proposition for our customers and other stakeholders and create more opportunities for our employees,” said Paulo Cesar de Souza e Silva, President and CEO of Embraer. “Our agreement will create mutual benefits and boost the competitiveness of both Embraer and Boeing.”

“Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies. This strategic global partnership will build on Boeing’s and Embraer’s long history of collaboration, benefit our customers and accelerate our future growth,” said Dennis Muilenburg, Boeing chairman, president and chief executive officer.

Embraer’s defense and executive jet business and services operations associated with those products would remain as a standalone publically-traded company. A series of support agreements focused on supply chain, engineering and facilities would ensure mutual benefits and enhanced competitiveness between Boeing, the joint venture and Embraer.

“Our shareholders have recognized the benefits of partnering with Boeing in commercial aviation and the promotion of the multi-mission airlift KC-390, as well as understanding the opportunities that exist in the executive aviation and defense business,” said Nelson Salgado, Embraer Executive Vice President of Finance and Investor Relations.

“People across Boeing and Embraer share a passion for innovation, a commitment to excellence, and a deep sense of pride in their products and their teams – these joint ventures will strengthen those attributes as we build an exciting future together,” said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Performance & Strategy.

Boeing and Embraer announced in December 2018 that they had approved the terms for the joint ventures and the Brazilian government gave its approval in January 2019. Shortly thereafter, Embraer’s board of directors ratified its support for the deal and definitive transaction documents were signed. The closing of the transaction is now subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, which Boeing and Embraer hope to achieve by the end of 2019.

Embraer will continue to operate the commercial aviation business and the KC-390 program independently until the closing of the transaction.

Embraer and Boeing welcome Brazilian Government approval of strategic partnership

Embraer and Boeing have welcomed approval by the Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.

The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent.

The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

Once Embraer’s Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents. The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.

Photo: Embraer.

Embraer and Boeing approved the terms of strategic aerospace partnership, seek Brazilian Government approval

Embraer and Boeing have approved to the terms of a strategic partnership that would position both companies to accelerate growth in global aerospace markets.

The approved terms define the joint venture comprising the commercial aircraft and services operations of Embraer, in which Boeing will hold an 80 percent ownership stake and Embraer will hold the remaining 20 percent. The transaction remains subject to approval by the Government of Brazil, after which Embraer and Boeing intend to execute definitive transaction documents. The closing of the transaction will then be subject to shareholder and regulatory approvals and customary closing conditions.

Under the terms of the proposed partnership, Boeing will acquire an 80 percent ownership stake in the joint venture for $4.2 billion. The partnership is expected to be neutral to Boeing’s earnings per share in 2020 and accretive thereafter. Estimated annual pre-tax cost synergies of approximately $150 million are anticipated by the third year of operations.

Once the transaction has closed, the commercial aviation joint venture will be led by Brazil-based management, including a president and chief executive officer. Boeing will have operational and management control of the new company, which will report directly to Dennis Muilenburg, Boeing chairman, president and chief executive officer. Embraer will retain consent rights for certain strategic decisions, such as transfer of operations from Brazil.

“Boeing and Embraer know each other well through more than two decades of collaboration, and the respect we have for each other and the value we see in this partnership has only increased since we announced our joint efforts earlier this year,” said Dennis Muilenburg, Boeing chairman, president and chief executive officer.

“We are confident that this partnership will deliver great value to Brazil and the Brazilian aerospace industry as a whole. This alliance will strengthen both companies in the global market and is aligned with our long-term sustainable growth strategy,” said Paulo Cesar de Souza e Silva, Embraer president and chief executive officer.

The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

The transaction is subject to approval by the Government of Brazil, ratification by the Embraer Board of Directors and its further authorization to execute the definitive transaction documents. Once the parties have executed the definitive transaction agreements, the strategic partnership will then be subject to shareholder and regulatory approvals, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.

Binter Canarias of Spain will receive it’s first Embraer E195-E2 in 2019

Embraer announced that Binter Canarias, of Spain, will receive its first E195-E2 jet in the second half of 2019, becoming the first European customer of the E-Jets E2’s largest model. The airline signed a firm order with Embraer for three E195-E2s. The contract also includes purchase rights for two additional aircraft of the same model.

This agreement was previously announced as a Letter of Intent (LOI) with an “undisclosed customer” at the Farnborough Air Show 2018, in July. With all options being exercised, the contract has a list price of $342 million. The order was included in Embraer’s third quarter backlog of 2018. The airline will configure the aircraft with 132 seats in a very comfortable single-class layout.

Embraer is the world’s leading manufacturer of commercial jets up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,400 deliveries, redefining the traditional concept of regional aircraft.

Image: Embraer.