Transportation Industry

Company Watch - Embraer

AirGuide Business, July 14, 2008

7/14/2008

Airlines may be struggling with fuel costs, but a Wellington-based maker of aircraft interiors is flying high with new business in executive jets. B/E Aerospace announced Friday it won a $200 million contract from Embraer - Empresa Brasileira de Aeronautica S.A. Business jets represent 11.5 percent of B/E Aerospace's total sales. Under the new award, the company will supply products for Embraer's new business jets, Legacy 450 and Legacy 500 aircraft. 7/12/2008

Embraer unveiled at the Farnborough Airshow orders for 22 of its 190 aircraft and options on 20 more: Aeromexico orders 12 190 aircraft and takes 15 options; Saudi low-cost carrier orders five 190 aircraft; and Niki Lauda's Niki orders five 190 aircraft with five options. 7/15/2008

Brazilian aircraft manufacturer Embraer said on Friday that China's Kun Peng Airlines has agreed to buy five Embraer 190 passenger jets in a deal valued at USD$187.5 million. The sale, announced at the Farnborough International Airshow, should help strengthen Embraer's foothold in China, where it has a factory in conjunction with the Harbin Aircraft Industry Group and Hafei Aviation. The jets for Kun Peng Airlines will be configured to seat 98 passengers in two classes, with deliveries starting later this year. The Embraer 190 is one of four planes in the so-called E-Jet family, which target the 70- to 122-seat niche. Since taking to the skies in August 2005, Embraer has logged 847 firm orders for the E-Jets in 30 countries. 7/12/2008

Embraer delivered 43 commercial aircraft during the second quarter, up significantly from 27 delivered in the second three months of 2007. Deliveries comprised two ERJ-145s, one E-170, 14 E-175s, 21 E-190s and five E-195s. First semester commercial deliveries totaled 18 compared to 47 last year, and the company reaffirmed its forecast of 195-200 total deliveries in 2008 including its business jet segment. As of June 30 its firm order backlog included 41 ERJ-145s (all for China's Hainan Airlines), 46 E-170s, 46 E-175s, 270 E-190s and 75 E-195s. 7/7/2008

Kenya Airways said on Wednesday it expected to take delivery of a third Embraer 170 Long Range plane in August to boost its expansion into African routes. The new Embraer is the first of four aircraft the carrier expects this year. The others are three previously announced new 737-800s from Boeing, the first of which is also due in August, the airline said in a statement. The 72-seater jet will ply domestic and regional routes in Kenya, Uganda, Tanzania, Rwanda, Burundi and Zambia, which are key sources of business for the airline. In April, Kenya Airways announced that it would launch new routes and increase services on others. Kenya Air said Embraers were suited for the regional routes because of their short ground turnaround time, common parts, low maintenance costs and fuel efficiency. The airline, which is 26 percent owned by Air France-KLM, currently flies to 43 destinations in 39 countries. 7/16/2008

Kunpeng Airlines, the Xi'an-based JV between Shenzhen Airlines and Mesa Air Group, signed a contract for five Embraer E-190s worth $187.5 million at list prices, the manufacturer announced. Aircraft will seat 98 passengers in two classes. 7/14/2008

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