Swiss Delay, Though Necessary, Could Benefit Airline's Competitors

Embraer confirmed to us that SWISS has requested Embraer to consider the postponement of its firm order for EMBRAER 170s and 195s. The plane-maker said, "Whilst there is no decision yet in that regard, the companies are in discussions about alternatives. As there are currently only four deliveries (EMBRAER 170) scheduled for SWISS in 2004 and there is potential demand for short term EMBRAER 170 production slots, Embraer does not anticipate a reduction to its forecast of 160 airplanes to be delivered in 2004."

The new 170/190 family fron Embraer constitutes the top of the line for the Brazilian manufacturer, and has been well-received by industry, even given the handicaps of the global economy, and the negative press that the Brazilian economy itself has received in the past few years. Embraer appears to have differentiated itself from the "Brazilian" economy, and become better-recognized as part of the "aerospace" economy. The transfer of delivery slots from Swiss, to probable competitors, may be a powerful (though necessary) pill for Swiss to swallow, in the next couple years, as the teetering airline regains its footing.

FMI: www.embraer.com.br