Embraer’s bizjets : Brazil’s success story »

By Jean-Michel Guhl
23 January 2011

São José dos Campos, Brazil, 23 January 2011 — Brazil, as the first letter of a triumphant quartet, the ‘BRIC’ -- Brazil, Russia, India, China --, is today one of the world’s most successful economies. Part of this affluence, is unquestionably this South American anticipated world giant’s aviation industry heralded by one single name : Embraer, Empresa Brasileira de Aeronautica. Now only 40-year old and a big label on the global aeronautical scene, both on the commercial and military markets, Embraer is nevertheless only a juvenile player in the field of business aviation.

Actually a quite young player to be true. As it was only in 2002 that Embraer jumped into the pool with the Legacy 600, it’s first super mid-size twin-engine business jet ; a derivative of the fortunate Embraer ERJ 135 family of commercial jet aircraft.

Three years later, in 2005, the brand new Phenom 100 and 300, so-caled ‘pocket jets’, were launched, soon followed in 2006, by the Lineage 1000, a variant of the Embraer 190 regional jet. Then Embraer embarked on the design studies of the mid-size jet (MSJ) Legacy 450 and 500 and then of the larger Legacy 650, an upgraded version of Embraer’s super-midsize 600 which first serial copies hit the market in 2010, one year before the Legacy 500 which ‘roll-out’ is scheduled for 2011. In the final not more than a total of seven new bizjets. And in short quite a nice decade of achievement in this business segment for the Brazilian industry, to say the least !

Although an uneasy veil has settled over the business aviation industry these past years, that of Brazil has demonstrated a strong relisience. With a huge drop in annual sales in 2009, the silver lining behind the slowly clearing clouds of recession is however here in view.

While bizjets deliveries dropped to a worrisome low, as a direct consequence of the US-inspired money crisis of two years ago, yet, in the midst of the depression, the fundamental strength of an industry -- that takes each setback in stride and continues to forge ahead with innovative products and programmes – seems to surf on rather well. Particularly in Brazil, a country which is at the present time both an important producer and a large importer of business jets, in the small, medium and super medium segment. Even if only because the size of that country -- one of the largest in the world -- justifies the extensive use of aviation. And especially of business aviation which experiences there none of the bureaucratic hassle so widespread in Europe.

In 2011, the mooted recovery in financial markets should bring back business aviation to a likely normality even though the market is growing only very slowly . “The economy is getting better now,” said Claudio Camelier, Embraer vice president of market intelligence executive jets, during the recent MEBA in Dubai, but it will take some time for the business jet market to climb back to its 2008 peak of $22 billion worth of deliveries.

The number of used jets in the marketplace remains a significant factor affecting manufacturers today, but. With the appearance of new models now, there are at last signs that the congested pre-owned aircraft market is beginning to move, with available inventory falling below 20 % two years ago.

Favorable signs of the slow recovery of the global bizjet market are visible in 2011, such as better activity in Brazil, Russia, India and China., now the most dynamic market for this type of aircraft. But what about Europe, a few years back the most promissing marketplace ? Brian Humphries, president of the European Business Aviation Association, which hosts EBACE every year in Geneva, is hopeful about the European business aviation community.

“It has turned out better than we thought,” he said. “We projected a 15 % downturn in European flight activity levels in 2009, which some thought was optimistic, but that is what it ended up being, taking us back to where we were in 2005. We think we are going to see a slow but erratic recovery during the year, only to be bettered in 2011” he said. Eurocontrol projects that business aviation traffic will grow to more than 8 % of IFR traffic in Europe. Most EBAA members, Humphries added, “are still trading, but there is no question that people are finding conditions still quite damaging and quite tough.”

It is noteworthy that European attitudes toward business aircraft differ from those in the USA. “However in Europe we have not seen the political negatives about business aviation. One of our greatest achievements has been to have the European Commission, the European Parliament and the Council of European Union transport ministers recognize that business aviation has a particular role in the aviation infrastructure of Europe” reckons Humphries It is providing a particular service to help people develop their businesses and connect them.”
 In 2010 a true sense of recovery has begun. Let’s bet that on the heels of such a difficult period for the aviation industry, this year’s EBACE (to be held at Geneva Airport from 17 to 19 June in 2011) will be much better.

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