Embraer studies new jet for commercial aviation market
Valor Econômico 07/23/10
Embraer should decide, until the end of this year, whether it changes the engine of the 195 jet, which carries up to 122 passengers, or starts developing a larger aircraft, with 130 seats, said yesterday the Vice-President for the Commercial Aviation Market of the company, Paulo César de Souza e Silva. The Executive also said the company has no plans of producing a 150-seat airplane. The company has also assessed the possibility of launching an extended version of the 195, named 195X, but it didn't take the project ahead, because potential operators expressed the concern there would be a significant reduction in the range of the aircraft.Embraer also ruled out the development of a new turboprop aircraft, but it confirmed it has made a study on that market in recent years. "This market is not very large and the two companies that operate in the segment - ATR and Bombardier - already meet the demand well. We have decided to continue focusing our efforts on the E-Jets". Embraer was the leader in the turboprop aircraft segment in the 80s with the Brasilia model. The company produced and sold more than 350 units of model and, currently, nearly 200 aircrafts are still in operation in the world.
For the Transport analyst of Santander, Caio Dias, Embraer already studies the development a more operationally efficient product to face competition on the market, represented mainly by the new Bombardier CSeries aircrafts and the Mitsubishi MRJ. "Changing the engine of its E-Jets family is the most likely option at the moment, because it represents lower cost and it can be placed in the market within a shorter term and in time for the company to develop a new airplane", says the analyst. Moreover, according to the analyst, the Embraer 170/190 family of jets also has great acceptance in the world market and the announcement of sales of the company at the Farnborough Airshow was an undeniable proof the interest in the aircrafts remains.
According to a source inside the market of aeronautical development, Embraer needs to take quick decisions to prevent losing market. "The 170/190 family is already in the market for 10 years and any gains the planes receive will make great difference for the operator in terms of operating costs". The alternative of changing the engine, according to the source, would take place together with aerodynamic improvements, which would bring, as benefit, a more efficient airplane and with a lower operating cost. "The development of a new aircraft would involve the construction of a new fuselage, the use of more efficient materials and a new engine", he explained.
The development of a new Jet, larger than the 195, according to the expert, would require a minimum investment of US$ 2 billion. According to Santander's analyst, Embraer has competence to put this plane in the market at a record time of four years. The change of engine, on its turn, would cost much less, between US$ 800 million and US$ 1 billion. The rival Bombardier, according to Dias, is investing nearly US$ 2.5 billion in the development of its new CSeries jets and they are scheduled to land in the market around 2014.