Tag: backlog (Page 3 of 3)

Embraer Delivers 198 Total Jets in 2019

February 19, 2020 / WIL BALDWIN

Embraer (ERJ) delivered a total of 198 jets in 2019, of which 89 were commercial aircraft and 109 were executive jets (62 light and 47 large), which represents an increase of 9% compared to 2018, when the Company delivered a total of 181 jets. The deliveries were within the outlook ranges for 2019 of 85 to 95 for the commercial aviation market and of 90 to 110 for the business aviation market. In the fourth quarter of 2019, Embraer delivered 81 jets, being 35 commercial aircraft and 46 executive jets (20 light and 26 large). As of December 31, the firm order backlog totaled USD 16.8 billion. See details below:

Deliveries by Segment	4Q19	2019

*Commercial Aviation*	35	89
EMBRAER 175 (E175)	22	67
EMBRAER 190 (E190)	2	5
EMBRAER 195 (E195)	1	3
EMBRAER 190-E2 (E190-E2)	4	7
EMBRAER 195-E2 (E195-E2)	6	7

*Executive Aviation*	46	109
Phenom 100	4	11
Phenom 300	16	51
Light Jets	20	62
Legacy 650	3	5
Legacy 450	10	15
Legacy 500	5	11
Praetor 500	3	3
Praetor 600	5	13
Large Jets	26	47

TOTAL	81	198

In the fourth quarter of 2019, Embraer delivered the first Praetor 500 business jet to Flexjet, a global leader in private jet travel, just over one year after its announcement at the 2018 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE).

Embraer also announced the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL), expanding its service capacity through a lease agreement with Jetscape Services for a dedicated hangar. Embraer’s presence in Florida is strategic for its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as for those whose travel frequently brings them through South Florida.

In the same period, Embraer delivered the second KC-390 Millennium to the Brazilian Air Force and the contract with the Portuguese Government for a firm order for five KC-390 airlifters was included in Embraer’s backlog in the fourth quarter of 2019.

At the Dubai Air Show, Embraer announced the name and designation of its multi-mission medium aircraft, the Embraer C-390 Millennium. The new designation reflects increased flexibility and value for operators that look for a transport/cargo aircraft to perform airlift and air mobility missions, among others. In addition, Embraer and Boeing announced that the joint venture to promote and develop new markets for the C-390 Millennium multi-mission airlift and air mobility aircraft will be called Boeing Embraer – Defense. The organization will only be operational after the companies’ joint venture receives regulatory approvals and meets closing conditions.

Also during the event in Dubai, Embraer announced two contracts for commercial aircraft: a contract with Air Peace for three additional E195-E2s, confirming purchase rights from the original contract and a firm order for three E190 jets with CIAF Leasing.

Embraer welcomed three new E2 operators. Helvetic Airways, from Switzerland, and Air Kiribati, national airline of the Republic of Kiribati, received its first E190-E2 jets, while Binter, of Spain, received its first E195-E2. Embraer also signed firm orders with SkyWest, for 20 E175 that will be operated by American Airlines, and with Congo Airways for two E175 aircraft, with purchase rights for a further two.

Embraer and SkyWest Sign Contract for 20 E175 Jets

January 30, 2020 / WIL BALDWIN

São José dos Campos, Brazil, January 30, 2020 – Embraer and SkyWest, Inc. (NASDAQ: SKYW) signed a firm order for 20 E175 jets in a 76-seat configuration. The order has a value of USD 972 million, based on 2019 list prices, and is already included in Embraer’s 2019 fourth-quarter backlog. Deliveries are expected to begin in the second half of 2020.

“Embraer and SkyWest enjoy a partnership marked by a longstanding history of service to the mainline carriers, and we relish the opportunity to break new ground,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “Today, we are excited to announce that these 20 new aircraft will be the first E-Jets operated by SkyWest within the American Airlines network.”

“We’re pleased to continue advancing our position in the industry with this latest order of new Embraer aircraft,” said Chip Childs, President and Chief Executive Officer of SkyWest, Inc. “We appreciate the long-standing partnership with Embraer and look forward to operating this outstanding aircraft for all four of our mainline partners.”

Embraer’s relationship with SkyWest dates back to 1986, when SkyWest began operating the EMB 120 Brasilia turboprop. With this additional order for the E175, SkyWest has purchased more than 180 aircraft of this model since 2013 alone.

Embraer is the world’s leading manufacturer of commercial jets with up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged almost 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.

Boeing Net Orders Slump to Lowest in Decades

January 14, 2020 / WIL BALDWIN

(Reuters) – Boeing Co <BA> reported its worst annual net orders in decades on Tuesday, along with its lowest numbers for plane deliveries in 11 years, as the grounding of its 737 MAX jet saw it fall far behind main competitor Airbus <EADSY>.

Boeing’s gross orders plunged 77% to 246 in 2019, while net orders after cancellations or conversions were just 54 airplanes compared with 893 the previous year.

After an accounting adjustment representing jets ordered in previous years but are now unlikely to be delivered, Boeing said its net total for orders this year sank to a negative 87 airplanes.

As a result, Boeing’s book-to-bill ratio, which measures orders against deliveries, came in at a negative 0.23 in 2019.

Boeing said unidentified customers canceled orders for three 787-9’s in December and another customer canceled an order for a 787-8.

Ten months after the MAX was grounded in March following two fatal crashes, Boeing still has a backlog of more than 5,400 orders for its long- and short-distance commercial jets.

By comparison, Airbus said earlier this month it racked up a net 768 orders last year after cancellations and delivered a record 863 planes.

Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, as the MAX’s grounding made it impossible for it to deliver the planes to customers, forcing it to halt production last month and lose the top spot to its European rival for the first time in eight years.

Planemakers receive most of their revenue when aircraft are delivered – minus accumulated progress payments – making final delivery crucial for their finances.

Analysts estimate that Boeing has been losing around $1 billion a month because of the grounding and it reported an almost $3 billion negative free cash flow in the third quarter. Fourth-quarter figures are due on Jan. 29.

Boeing parted ways with Chief Executive Officer Dennis Muilenburg last month as it became increasingly clear that he was making little headway in resolving the crisis.

The company is still working to fix the MAX and there is little clarity on when Boeing is likely to get the green light from regulators to bring the airplane back into service, making analysts and investors jittery about the company’s prospects in 2020.

(Reporting by Tim Hepher in Paris, and Ankit Ajmera and Rachit Vats in Bengaluru; Editing by Patrick Graham, Shounak Dasgupta and Amy Caren Daniel)

Unpainted Boeing 737 MAX aircraft are seen parked at Renton Municipal Airport in Renton

Congo Airways Signs Order with Embraer for Two E175 Jets

December 10, 2019 / WIL BALDWIN

Kinshasa, Democratic Republic of the Congo, December 10th, 2019 – Embraer and Congo Airways have signed a firm order for two E175 aircraft, with purchase rights for a further two. The deal has a total value of USD 194.4 million at current list prices with all purchase rights exercised, and will be added to Embraer’s 2019 fourth quarter backlog.

Desire Bantu, CEO of Congo Airways said, “These new jets will replace our current turboprop offering and allow us to serve routes both within the Democratic Republic of Congo, and regionally to West, Central, and Southern Africa, from our hub in Kinshasa. We will now have the flexibility and the right sized aircraft to serve our market, which is growing so rapidly an additional order may be required, for which the E2 is a particularly compelling option.”

Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation, said, “It’s great to welcome another airline to the Embraer family of operators, especially in Africa where the demand for regional travel is growing strongly. We look forward to supporting Congo Airways as they continue to upgrade their offering to their customers.”

The aircraft will be configured in a dual class layout seating 76 passengers in total, with 12 in business class. Deliveries will begin in the fourth quarter of 2020.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers across the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleets of 80 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline network carriers.

Air Peace Signs a Firm Order for Three additional E195-E2 Jets

November 17, 2019 / WIL BALDWIN

Dubai, UAE, November 17th, 2019 – Embraer announced today, at the Dubai Air Show, that Air Peace, Nigeria and West Africa’s largest airline, has signed a contract for three additional E195-E2s, confirming purchase rights from the original contract, signed in April this year. These new E195-E2s will be included in Embraer’s 2019 fourth-quarter backlog and have a value of USD 212.6 million, based on Embraer’s current list prices.

Set to be the first E-Jets E2 operator in Africa, Air Peace’s firm order, announced in April this year, is now for 13 E195-E2s with 17 purchase rights for the same model. The first delivery is scheduled for the second quarter of 2020.

“The E195-E2 is the perfect aircraft to expand our operations in Africa and this new order is a further confirmation of our ‘no-city-left-behind initiative which we shall continue to execute”, said Air Peace Chairman/CEO, Mr. Allen Onyema. He added, “We are receiving impressive data about the aircraft’s economics now that is in revenue service, and this was a driver to place this new firm order with Embraer. We look forward to receiving our first aircraft, which will enhance connectivity in Nigeria and the African region, while feeding long-haul flights from our Lagos hub.”

“Air Peace will love the aircraft’s efficiency and the passenger will experience an unparalleled level of comfort, especially in first class – Air Peace is the launch customer for Embraer’s new premium staggered seating option”, said Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation. “We look forward to supporting Air Peace’s growing E2s fleet and to deepening our fruitful partnership.”

Air Peace subsidiary, Air Peace Hopper, started operating six ERJ145 jets last year on short thin routes. That experience with Embraer’s products and services, including the pool programme, and the undeniable economic benefits of right-sizing aircraft for the mission, was a key factor in selecting the E2.

Air Peace’s E195-E2s will be configured in a comfortable dual class arrangement with 124 seats. Air Peace operates more than 20 local, regional, and international routes and has strategic plans to expand those routes.

Embraer is the world’s leading manufacturer of commercial jets up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.

Resurgent Boeing 737 MAX Could Trigger Jet Surplus

November 4, 2019 / WIL BALDWIN

– Market faces potential surplus of 1,000 jets next year

– Air Lease CEO less worried about surge in MAX deliveries

– Older aircraft won reprieve during MAX grounding

– Boeing aims to deliver record-matching 70 MAX a mth on return

HONG KONG, Nov 5 (Reuters) – Airlines struggling to cope with the grounding of the 737 MAX could face a markedly different problem when Boeing Co’s best-selling jet is cleared to re-enter service: a switch to concerns about aircraft oversupply, carriers have been warned.

The U.S. planemaker has continued to produce the jet since it was grounded in March after two fatal accidents, and is expected to speed deliveries by 40%, to 70 units a month, when its factory doors reopen, in a bid to clear the backlog.

Rob Morris, global head of consultancy at UK-based Ascend by Cirium, said the combination of any rapid rebound in deliveries, economic worries and an accumulation of market pressures dating back before the crashes could make it hard to absorb the jets.

“Next year is the challenge. When the dam breaks and the MAX starts to flow, there are going to be a lot of aircraft,” Morris told financiers at a Hong Kong briefing late on Monday.

“There could potentially be as many as 1,000 surplus aircraft next year.”

The forecast is based on both a rebound in MAX deliveries and a potential glut of second-hand airplanes flooding back onto the market after standing in for the MAX during the grounding.

The crisis has rekindled demand for older and less efficient jets, with airlines using more than 800 planes that are more than 15 years old, compared to conditions four years ago, Morris told the Airline Economics Growth Frontiers conference on Tuesday.

TWO-YEAR LOG JAM

Until now, most concern has focused on whether regulators would permit an orderly return to service by avoiding gaps in approvals by different countries.

But Morris, who has warned a long up-cycle in aviation is nearly over, said there were also risks in opening floodgates too quickly, overwhelming fragile growth in travel demand.

Still, he and other delegates at back-to-back aviation finance gatherings in Hong Kong agreed it would take Boeing 18 months or longer to deliver all the stranded aircraft.

The operation will be one of the industry’s biggest ever logistical challenges and any glitches or delays could further brake supply.

“Getting all those aircraft, that are currently parked, off the ground could take two years,” John Plueger, chief executive of Air Lease Corp, told Reuters, adding he did not see fundamental changes as a result of the MAX’s return.

“It is not as if all these MAX could be delivered over a one-, two- or three-month period … so it is not an open floodgate and 350 planes all coming onto the market tomorrow,” he said on the sidelines of last week’s Airfinance Journal Asia Pacific conference.

Boeing aims to return the 737 MAX to service in the United States by the end of 2019, after making software changes in the wake of the crashes, which killed 346 people.

Europe’s top regulator said on Monday the airliner is likely to return to service in Europe in the first quarter of 2020.

Analysts say more than 300 MAX aircraft have been produced since March, when commercial flights were banned and deliveries frozen. This could rise to 400 by the time it resumes service.

Boeing is additionally expected to deliver close to 600 jets straight from the production line next year. It has indicated it plans to deliver up to 70 jets a month, equal to a previous record. Of this, analysts say around 20 are expected to be drawn from inventory parked at its factories and the rest newly built.

(Reporting by Tim Hepher and Anshuman Daga in Hong Kong Editing by Matthew Lewis and Clarence Fernandez)

Piaggio Aerospace awarded aircraft maintenance Contract

August 25, 2019 / WIL BALDWIN

The Italian manufacturer will provide ENAV – the Italian air navigation service provider – with the maintenance of the four P.180s used for flight inspection activities at national airports.

Piaggio Aerospace has been awarded a contract for the maintenance of the P.180s owned by ENAV, the company that manages civil air traffic in Italy. The agreement, with an estimated duration of approximately 7 years, is worth 12.6 million euro and will guarantee integrated logistic support for ENAV’s fleet of four P.180 Avanti II.

“The agreement signed represents a further step forward in the turn-around process of Piaggio Aerospace”, commented Vincenzo Nicastro, Extraordinary Commissioner of Piaggio Aerospace. “While strengthening the backlog of the Genoa factory-owned service centre, it also confirms the unique expertise of the company in the airframe MRO domain, consolidated throughout decades of activities”.

The ENAV P.180s perform an average of 1,800 flight hours per year. Thanks to their special equipment, they carry out regular measurements and calibration of airport navaids (Radar, VOR, DME, VDF, ILS etc.) in order to guarantee their continuous operational accuracy, essential for the safety of air navigation.

A similarly equipped P.180 will be showcased at MAKS ’19, the international air show that will be held at Zhukovsky International Airport (Moscow) from August 27 to September 1. A delegation of Piaggio Aerospace will also be present at the air show.

Embraer Delivers 51 Total Jets in Second Quarter of 2019

August 1, 2019 / WIL BALDWIN

Embraer delivers 26 Commercial and 25 Executive Jets in 2Q19

São José dos Campos, Brazil, July 30, 2019 – Embraer (NYSE: ERJ) delivered a total of 51 jets in the second quarter of 2019 (2Q19), of which 26 were commercial aircraft and 25 were executive jets (19 light and 6 large). As of June 30th, the firm order backlog totaled USD 16.9 billion compared to USD 16.0 billion at the end of 1Q19. Embraer’s 2Q19 backlog increase is largely due to continued market demand, mainly for the new family of Praetor jets in Executive Aviation. See details below:

In the second quarter, Embraer received the Type Certificate for the E195-E2 from three regulatory authorities: ANAC, the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil); the FAA (U.S. Federal Aviation Administration) and EASA (European Aviation Safety Agency). The E195-E2 is the largest of the three members of the E-Jets E2 family of Embraer commercial airplanes.

In the beginning of the 2Q19, Embraer signed a firm order for 10 E195-E2 jets with Air Peace, Nigeria’s largest airline. The contract includes purchase rights for a further 20 E195-E2s. With all purchase rights being exercised, the contract has a value of USD 2.12 billion.

During the 53rd International Paris Air Show, Embraer announced several sales contracts as follows. All values are based on Embraer’s current list prices.

United Airlines signed a contract for up to 39 E175s, comprising 20 firm aircraft and 19 options. The order has a value of USD 1.9 billion with all options being exercised. Binter, of Spain, confirmed the purchase rights for two additional E195-E2s from the original contract signed in 2018. The two new E195-E2s have a value of USD 141.8 million.

Embraer also announced KLM Cityhopper’s intention to purchase up to 35 E195-E2 jets, consisting of 15 firm orders with purchase rights for a further 20 aircraft of the same model. This intention to purchase, which still requires a Purchase Agreement, has a value of USD 2.48 billion.

Embraer announced during the Paris Air Show that it signed a contract with Japan’s Fuji Dream Airlines (FDA) for a firm order of two E175 jets. The order has a value of USD 97.2 million and was already included in Embraer’s 1Q19 backlog as “undisclosed.”

In the executive aviation segment, Embraer received the Type Certificate for the new Praetor 600 super-midsize business jet by the three main world regulatory agencies: ANAC, the FAA, and EASA. The first Praetor 600 was delivered in June to an undisclosed European customer.

Embraer Defense & Security and ELTA Systems Ltd (ELTA), a subsidiary of Israel Aerospace Industries (IAI), signed at the 53rd International Paris Air Show a Strategic Cooperation Agreement to introduce the P600 AEW (Airborne Early Warning). In this cooperation, Embraer is to provide the air platform, ground support, communications systems and aircraft integration while ELTA is to provide the AEW radar, SIGINT (Signals Intelligence) and other electronic systems and system integration.

Embraer Services & Support announced at the Paris Air Show a contract with Azul Linhas Áereas Brasileiras, S.A. for a long-term Flight Hour Pool Program agreement for the carrier’s brand new fleet of Embraer E195-E2 jets. The Company also announced pool maintenance and parts agreements with Helvetic Airways, from Switzerland, and Aurigny Air Services, from the Guernsey Island. During the MRO Americas event, in early April, Embraer also announced support contracts with Air Botswana, Binter, from Spain, and Mauritania Airlines.

Fuji Dream Orders Two E175’s to Add to its All-Embraer Fleet

June 18, 2019 / WIL BALDWIN

Paris, France, June 18, 2019 – Embraer announced today, at the 53rd International Paris Air Show, that it has signed a contract with Japan’s Fuji Dream Airlines (FDA) for a firm order of two E175 jets. The order has a value of USD 97.2 million, based on 2019 list prices, and was already included in Embraer’s 2019 first-quarter backlog as “undisclosed.”

“We are extremely pleased to continuously grow our fleet and our relationship with Embraer,” said Yohei Suzuki, Chairman and CEO of Fuji Dream Airlines. “FDA currently operates 14 aircraft – three E170s and eleven E175s. These new aircraft will give us the ability to grow our capacity, allowing us to add more routes and frequencies, while also offering our passengers the best cabin in its category.”

FDA’s new E175s will be configured in a single-class layout with 84 seats, with deliveries starting in 2019. Embraer delivered the first E-Jet, an E170, to Fuji Dream Airlines in 2009.

“After nearly 10 years of operations, Fuji Dream Airlines has established itself as an exemplary model for sustainable growth with the support of the E175’s unrivaled attributes underpinning the success of their continued network expansion with new point-to-point services,” said Cesar Pereira, Asia Pacific Vice President, Embraer Commercial Aviation. “As a testament to Embraer’s merits, there will be a total of 48 E-Jets flying in Japan by the end of 2019. Of which, FDA’s all-Embraer fleet of 14 aircraft represents the largest of its kind in Asia and has a world leading 99.83% dispatch reliability – yet another example of how Embraer’s products and customer support have been setting new standards in the industry.”

The E175 is the best seller of the E-Jets family with more than 770 orders from airlines and lessors around the world. Since January 2013, Embraer has sold more than 565 E175s to airlines in North America alone, earning more than 80% of all orders in the 70-76-seat jet segment.

FDA and Embraer have also signed an extension of the Pool Program to cover its fleet of E170s and E175s, including these new orders. The program includes the advance exchange and repair management for more than 300 essential line replacement units of the aircraft.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleet of 75 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

Embraer Announces Earnings Results For 1st Quarter 2019

May 15, 2019 / WIL BALDWIN

HIGHLIGHTS

Embraer delivered 11 commercial jets and 11 executive jets (8 light / 3 large) in 1Q19.

The Company’s firm order backlog at the end of 1Q19 was US$ 16 billion considering all deliveries as well as firm orders obtained during the period.

EBIT and EBITDA in 1Q19 were US$ (15.2) million and US$ 30.9 million, respectively, yielding EBIT margin of -1.8% and EBITDA margin of 3.8%. This compares to EBIT of US$ (5.3) million (-0.6% EBIT margin) and EBITDA of US$ 57.8 million (6.0% EBITDA margin) in 1Q18.

1Q19 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (42.5) million and US$ (0.23), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 1Q19 was US$ (61.8) million, with Adjusted loss per ADS of US$ (0.34). Embraer reported adjusted net loss in 1Q18 of US$ (60.5) million, for an adjusted loss per ADS of US$ (0.33) in the quarter.

Embraer reported Free cash flow of US$ (665.3) million in 1Q19, compared to free cash flow of US$ (435.2) million reported in 1Q18. The Company finished the quarter with total cash of US$ 2,483.4 million and total debt of US$ 3,587.1 million, yielding a net debt position of US$ 1,103.7 million versus net debt of US$ 439.9 million at the end of 2018.

The Company’s shareholders approved the proposed strategic partnership between Boeing and Embraer during an Extraordinary General Shareholders’ Meeting on February 26, 2019. At the meeting, 96.8% of all valid votes were in favor of the transaction, with participation of roughly 67% of all outstanding shares.

The closing of the transaction between Boeing and Embraer remains subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, expected by the end of 2019.

The Company reaffirms all aspects of its 2019 financial and deliveries guidance.

Click the link below for the full report!

https://daflwcl3bnxyt.cloudfront.net/m/4fe5d3ce64e6b820/original/Embraer-Release-US-1Q19_FINAL.pdf

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