Frontier India Strategic and Defence - News, Analysis, Opinion

Written on January 9, 2008 – 5:07 pm | by Frontier India Strategic and Defence |

Embraer delivered 61 jets to the Commercial Aviation, Executive Aviation, and Defense and Government segments during the fourth quarter of 2007 (4Q07), meeting its goal of delivering 165 to 170 aircraft in 2007. The Company recorded the largest annual airplane delivery figure in its history, 169 jets, and its firm order backlog achieved a new record of US$ 18.8 billion, on December 31, 2007.

During 2007, the Company sought to adapt its industrial processes to the delivery schedule established with customers. Such actions as hiring new employees, implementing a third shift for some of the production processes, and adopting a lean manufacturing concept for the industrial processes, allied with the determination of all employees, led the Company to a 30% increase in the number of deliveries over the previous year.

Embraer delivered 45 jets to the Commercial Aviation segment, 14 Legacy 600s to the Executive Aviation segment and two jets to the Defense and Government segment during the 4Q07.

Embraer increased the number of customers in its firm order backlog for the EMBRAER 170/190 jets family in the last quarter of 2007, with the sale of two EMBRAER 170s to Suzuyo, from Japan, 16 EMBRAER 190s – 11 to TACA, from El Salvador, and five to NAS Air, from Saudi Arabia, and ten jets to Virgin Nigeria, from Nigeria, where seven orders are for EMBRAER 170s and three are for EMBRAER 190s. Also in the Commercial Aviation segment, U.S.-based Republic Airways Holdings confirmed 11 options for EMBRAER 175 jets.

In the Executive Aviation segment, a number of firm orders were taken for jets from the Phenom family, bringing the total aircraft sold to over 700. During the same period, the Defense and Government segment signed contracts with the Royal Thai Army and the Royal Thai Navy for the sale of two ERJ 135 jets.

Embraer expects to deliver between 195 and 200 aircraft, in 2008, in the Commercial Aviation, Executive Aviation, and Defense and Government (State-owned airlines and transportation of government officials) segments, plus another ten to 15 Phenom 100 jets. The Company also estimates delivery of 195 to 200 aircraft to the same segments, in 2009, and another 120 to 150 Phenom 100 and Phenom 300 jets.