Embraer confirms launching of two new executive jets
Gazeta Mercantil - 03/31/2008
On Friday, the Brazilian Aeronautics Company - Empresa Brasileira de Aeronáutica - (Embraer) officially announced to the market the launching of its two new models in the category of executive jets. The new airplanes will be either similar to the Phenom 300 jets, for up to nine passengers, or to the Legacy 600, projected for up to 13 seats. Called Embraer MLJ and Embraer MSJ, they will have capacity for 7 and 12 seats, respectively. The new executive jets are in the midlight and midsize categories. The airplanes offer room for two crew members. The expected investment for the development of these airplanes is US$ 750 million, and has been financed by industrial partners, financial institutions, and by Embraer's cash. The probable market values are still kept in secret. The MSJ jet, the smaller of them, will come into operation in the second semester of 2012. On its turn, the MLJ model is expected to be in operation in the second half of 2013. The time spent between the aeronautical projects and production is estimated in three years. Embraer foresees the midlight and midsize categories as being responsible for 21% of the total of deliveries of executive jets in the next 10 years. That is, nearly 2.7 thousand units in an estimated market of 13,150 units. According to the company's balance, the segment of executive aviation represented more than 15% of its sales in 2007, reaching approximately US$ 900 million. For 2008, when the delivery of the first Lineage 1000 and Phenom 100 will occur, the executive line airplanes may exceed US$ 1 billion in Embraer's annual sales. The portfolio of firm orders of executive jets of Embraer totals nearly US$ 4.5 billion. The new executive jets will be produced in the plant of Gavião Peixoto, in the interior of São Paulo, as well as the Phenom 100 and 300. Since the industrial park of Embraer in São José dos Campos is saturated, these units will receive only the finishing in the assembly lines in the headquarters of the company. According to specialists, this movement of productive transference may lead to an increased migration of supplying companies from the Vale do Paraíba to Gavião Peixoto. This movement started with the military units, when the production of the light attack turboprop airplane, the Super Toucan, was moved.