Predicts Business Will Be Back To "More Normal" By 2012
Like the entire aircraft sector, Embraer has been negatively
impacted by the worldwide economic downturn. But at a news
conference at AirVenture 2009 Wednesday morning, North American VP
for Marketing Ernest Edwards said there are signs of recovery,
and that Embraer expects to be seeing a business model that is
"more normal" by 2012.
Ernest Edwards
"2009 is going to be a bleak year," Edwards said at the top of
the new conference. But he did say that he expects to see a
resurgence in U.S. GDP, returning to "normalcy" by 2012. He cited
what could be interpreted as recovery in U.S. financial markets,
with the Dow hovering around 9,000. "The slide in business jet
traffic seems to have abated," he said, but fractional sales
continue to decline. The used jet market is also showing a slow
reduction in inventory, according to Edwards, particularly in the
10 years old and younger sector.
In all, Edwards concluded that Embraer expects GDP to be
"back to more normal business by 2012." He said Embraer anticipates
the industry selling some 5,400 aircraft in the next 10
years, representing $88 billion in sales in the North American
market, which includes the U.S., Canada, Mexico, and the
Caribbean.
Edwards then turned to discussion of the various aircraft.
Embraer has delivered 25 of it's Phenom 100 4-place jets, most of
them to the North American market. There are 4 prototype models of
the Phenom 300 flying, and the company has just completed testing
for natural icing and crosswinds. Certification of the Phenom 300
is expected by year's end, with a starting price of about $6.85
million in 2005 dollars. He said Embraer has firm orders for 800
Phenom 100 and 300 aircraft. This year alone, Embraer says it
expetcts to deliver 110 Phenoms, most of them the 100 model, but
some 300's are on that list.
Phenom 100 File Photo
The legacy 450 continues under development, with the suppliers
selected for the airframe and other components of the aircraft, and
the company expects the Legacy 500 will be ready for deliveries in
2012 as well,
Edwards said the company, which is celebrating it's 40th year
overall and 30 in the United States, thinks it's important to be at
Oshkosh. "Response to the airplanes on static display has been
fantastic," he said, and that Embraer expects to be at AirVenture
for many years to come.