Embraer has announced firm orders and commitments from undisclosed customers for the E2 family. The firm order consists of ten E195-E2´s, with an additional ten purchase rights for the E190-E2. The firm order has a value of US$666 million, based on Embraer’s current list prices and will be included in Embraer’s 2017 second-quarter backlog.
Embraer also signed a commitment with an undisclosed customer to purchase 20 E190-E2s. The agreement is subject to final documentation by the customer. The value of this order is US$1.182 billion based on Embraer´s current list prices.
With these announcements, the E2s have accrued 285 firm orders, in addition to 445 options, purchase rights, and letters-of-intent, totaling 730 commitments from airline customers and leasing companies.
Embraer projects market demand for 6,400 new jet deliveries in the 70-130+ seat segment over the next 20 years.
According to the latest Market Outlook, Embraer projects a steady market demand for 6,400 new jets in the 70-130+ seat capacity category (2,280 units in the 70-90 seat segment and 4,120 units in the 90-130+ seat segment), worth US$300 billion, by 2036.
The 70-130+ seat jet world fleet-in-service will increase from 2,700 aircraft in 2016 to 6,710 by 2036, the fastest growing segment among all aircraft seat capacities. Market growth will drive 63% of total demand and the remaining 37% will be delivered to replace ageing aircraft.
Whilst region-specific outlooks vary considerably, the underlying drivers to sustain the projected market demand for jets in the 70-130+ seat capacity category remain intact, from feeding complex bank structures at major hubs to pioneering new markets and complement narrow-body aircraft operation.
Fleet optimization is critical in the vicissitudes of business cycles, and a rationalized fleet does not necessarily signify an optimized one. Right-sized aircraft call for a new smarter approach. Greater control in matching aircraft capacity to market demand prevents the erosion of unit revenues and provides competitive cost structure.
The E195-E2, for example, will provide an attractive proposition with much lower trip costs and comparable seat-mile costs to than its large narrow-body counterparts, while combining growth and higher returns with the opportunity to increase unit revenue with a right-sized aircraft.
“The airline industry is notoriously known for its boom and bust cycles. Better seat inventory control allows a continuous search for higher profits and efficiency. The ability to shift back towards revenue unit growth, instead of aggressive capacity expansion, is crucial”, said John Slattery, President & CEO, Embraer Commercial Aviation.
Jets in the 70-130+ seat capacity category are one of the main pillars of business sustainability. As the most efficient single-aisle family of aircraft, the E-Jets E2 is perfectly positioned to keep Embraer as the market leader in the segment and maximize profitability for both airlines and leasing companies.