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| EMBRAER VERY LIGHT JET (VLJ) Embraer Jumping Into Business Jet Market With Two New Models |
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| JRLucariny FSDS V2.24 Model | |
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| Mai/2005 | |
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Embraer is launching this initiative with two all-new models: a six/eight-place very light jet (VLJ) powered by twin Pratt & Whitney of Canada 617F turbofans; and an entry in the light jet market, an eight/nine-place aircraft that will have a pair of P&WC PW535E engines flat rated at 3,200 pounds of thrust. |
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The new VLJ will enter service in 2008, with the new light jet to follow in 2009. The VLJ is priced at $2.75 million in 2005 dollars, while the price of the light jet is $6.65 million. Over the next decade, Embraer plans to introduce a number of additional models, giving it a product line ranging from the VLJ to large, long-haul business jets. |
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Embraer intends to become "one of the most significant players in this very sophisticated and complex market," said Mauricio Botelho, Embraer's president and CEO. |
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The Brazilian manufacturer stuck its nose into the business aviation tent in 2000 with the Legacy, an executive-configured version of the successful ERJ 145 regional jet. Our intent "was to learn about the [business aviation] market," said Botelho. Since 2000 "we've been learning a lot," he told guests Tuesday evening during an unveiling ceremony at the Corcoran Gallery of Art in Washington, D.C. The business aviation market will be a whole new line of business to complement Embraer's strong position in the regional airliner business and its smaller military manufacturing unit. |
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Luis Carlos Affonso, a 22-year veteran of Embraer recently named senior vice president-corporate aviation market, will head the new initiative, which he said will be a separate line of business within Embraer (BA, April 11/168). Affonso served as chief engineer on the ERJ 145 program and most recently was senior vice president of engineering and new product development, where he oversaw the 170/190 airliner program that resulted in four different aircraft models: the 170, 175, 190 and 195. A Merrill Lynch report released in conjunction with the Embraer announcement dubbed Affonso one of Embraer's "rising stars," noting that he is "recognized as a strong leader within the company and is an expert in the development and certification of new aircraft." |
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In detailing the two new models (which are yet to be named), Affonso said Embraer plans to succeed in the new venture through a combination of product differentiation and attractive pricing and expects to win a significant share of the market. Among the "design drivers" for the VLJ entry, No. 1 on Affonso's list was "premium comfort." A comparison of cabin cross-section illustrations he presented showed that Embraer's VLJ will offer significantly more passenger room than the Eclipse 500 and the Cessna Mustang. The P&WC PW617F engines each will produce 1,615 pounds of thrust, 79 percent more power than the P&WC PW610F turbofans on the Eclipse, which are rated at 900 pounds per side. |
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The two new aircraft will have the same fuselage cross-section. The VLJ will use a straight wing, while the airfoil on the light jet will be swept. The VLJ configured with a six-place interior will include a fully enclosed lavatory, officials said. Removing the lavatory will offer room for an eight-place interior. Embraer will fabricate the wings and fuselage from aluminum, but the new models will employ composite materials as well. |
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Developing an entire line of business jets from scratch in 10 years would appear to be a daunting task for any manufacturer, but in an interview with BA, Affonso, and other senior executives of Embraer and engine maker Pratt & Whitney Canada, expressed a quiet confidence that his new mandate is achievable. First, Embraer officials believe they've done their homework by establishing four separate advisory boards of operators, and conducting some 3,000 operator surveys. The company has presented nine concept aircraft to operators and is developing six more. |
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Affonso also believes Embraer has an economic advantage because the new aircraft will be designed and built in Brazil, where labor costs are significantly lower than in the U.S. and other aircraft manufacturing venues, such as France. The company said the total development cost of the VLJ and light jet airplanes will be $235 million (U.S.). When challenged by BA that $235 million seems to be a very low estimate for developing two all-new airplanes, Affonso responded, "We are very efficient," noting that the company is already using lean manufacturing technology. As evidence of its development efficiency, Affonso pointed to the company's recent experience: Total development cost of the 170-190 family was $850 million for four different models, he said. |
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By comparison, "our competitors up north" spent $2 billion to develop two aircraft, he said. "Twice as much for half the amount," he added, indicating that Embraer expects to achieve similar results during development of business jet models. The design process for the new jets has been under way for about a year, beginning with a core group of about 50 individuals and now totaling about 130. That number will climb again later this month as representatives of Pratt & Whitney Canada and other major systems suppliers (which have not been announced) begin participating in the effort. |
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The joint definition phase is expected to last three to four months, he said, before transitioning to a "virtual co-location" phase. No metal has been cut, but the program is definitely on a fast track. Embraer's board of directors signed off on the two new models just last month. |
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When a reporter suggested that a 2008 "entry into service" date probably meant delivery of just one or two airplanes that year, Affonso demurred, saying officials expect to deliver "a reasonable number of aircraft in 2008." While initial production rates have not been established, pending more assessment of market demand, "we are talking high production rates," he said. Marco Tulio Pellegrini, Embraer's market intelligence senior manager, corporate aviation, noted that at peak rates the company was producing as many as 19 ERJ 145s per month. He and Affonso estimated that the 50-passenger airliner requires three or four times as many hours of labor to build as the new light jets. By Dave Collogan 05/09/2005 09:52:18 AM Link |
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