Embraer bizjets: Deliveries below target

October 7, 2009

Brazilian manufacturer Embraer released its third-quarter 2009 delivery update Oct. 7. In all, the company delivered a total of 57 airplanes in the third quarter. This compares with 48 airplanes in the same quarter of 2008. Of the 57 aircraft, 27 deliveries were of business jets, with 22 Phenom 100s being delivered (41 for the year), plus five Legacy 600s.

In late 2008, Embraer anticipated delivering business jets amounting to 120 to 150 Phenom 100s, Legacy 600s, and large-cabin Lineage 1000s in 2009; by February 2009 that number had been trimmed to 100. Embraer will have to crank out a whopping 46 of its three business jets in the remaining three months of 2009 if it is to hold to its earlier projections.

However, thanks to third quarter deliveries of 29 airliners (17 E-190s, four E-195s, four E-170s, three E-E-175s, and one ERJ-145), total shipments of all Embraer airplanes resulted in an 18.8-percent increase in sales over the same period in 2008.

The Phenom 300, with its eight-seat cabin, swept wings, and 450-knot maximum cruise speed, is the Phenom 100’s larger stablemate. It’s due to be certified in the fourth quarter of 2009.

Embraer, which is celebrating its fortieth anniversary this year, began manufacturing 500 EMB-110 Bandeirantes, twin-engine turboprops capable of 15 to 21 passengers. Sales of these airplanes—affectionately dubbed “Bandits”—reached the 500 mark. In 1974, Embraer forged a deal whereby it built Piper Cherokees, Senecas, and Navajos under license. In the early 1990s, Embraer came close to bankruptcy but was reorganized. Then the company’s focus was shifted to regional jets.

The shift to making executive jets came in 2005. That was when Embraer announced its intention to start the Phenom 100 and 300 programs.