Embraer hopeful E2 jets can break into U.S. market, CEO says
07/11/2023 16:51
By Gabriel Araujo
SAO PAULO, Nov 7 (Reuters) - Brazilian planemaker
Embraer EMBR3.SA has been trying to sell U.S. carriers on the
merits of its E195-E2 jet as a "small narrow-body", even as
demand in its No.1 market has remained focused on the smaller,
first generation E175-E1.
The world's third-largest planemaker after Boeing BA.N and
Airbus AIR.PA amassed fresh orders for 23 E175-E1 planes from
both American Airlines AAL.O and SkyWest SKYW.O in the third
quarter, but sees room for its second generation plane to notch
up its first orders there too.
"It is an aircraft that can very well complement the
operation of large narrow-bodies," Chief Executive Francisco
Gomes Neto said in an interview on Monday.
Breaking into the U.S. market with E2 family would be an
important step for the planemaker to further improve its
production mix, which this year should show for the first time
more second generation jets being delivered than first
generation ones.
Gomes Neto said he hopes that new flights by Canada's Porter
Airlines to cities such as San Francisco and Tampa will help
showcase the plane to U.S. carriers.
The Canadian firm ordered dozens of planes from Embraer
since 2021, making it the first E2 customer in North America.
The E195-E2 seats up to 146 passengers, while the E175-E1
has up to 88 seats.
"I think we'll manage to convince them that the E195-E2 is
not a regional plane, but what we've been calling a 'small
narrow-body' that the majors could operate very efficiently,
helping them offer a higher frequency of flights during the day,
explore routes, open routes," Gomes Neto said.
"We have a huge opportunity in the U.S."
He mentioned KLM AIRF.PA and Brazil's Azul AZUL4.SA as
airlines that have succeeded in operating both the E195-E2 and
larger narrow-bodies such as the Airbus A320. The Dutch carrier
also flies the E175.
"It's a very efficient aircraft. When you fly it with an 80%
load factor it's very, very profitable, and that's the point
we've been trying to show the U.S. majors."
That doesn't mean, however, that demand for the E175-E1
would necessarily drop, the executive noted, adding that the
company forecasts demand of at least 300 aircraft within the
next 10 years.
As the recent pilot shortage seen in the U.S. eases, Gomes
Neto said, operators of the E175-E1, which Embraer has dubbed
the backbone of the U.S. regional aviation market, will tend to
make fleet renewal efforts.
"It's a versatile plane that meets that regional aviation
demand very well," the CEO said. "So we do expect very good
demand for it, but we are already working to also convince
airlines about the E2's potential."
(Reporting by Gabriel Araujo; editing by David Evans)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))