Jetrader - Summer 2014 - 12

remains within that program management
team. We are not going to experience some
of the issues that perhaps other OEMs have.
Airlines have a lot of confidence around
those entry into service dates, and that's
a competitive advantage that we're seeing
in the sales that we have achieved.

A rendering of the E190-E2.

Whilst Bombardier did not accept to
put new engine technology on the CRJ,
and that would be a more direct competitor with us today because the CSeries is
a bigger aircraft. The CSeries, in my opinion, is designed to compete with the 737
and A320 families of aircraft-we are not.
But with that said, they did select the
GTF engine. MRJ selected the GTF engine.
Airbus selected a choice-either the LEAP
or the GTF. A combination of these factors
was the initial trigger.
JT: Explain the thought process behind
producing the second generation airplane rather than launching an entirely
new airplane.
JS: Given we already had an advanced
fundamental design, we decided at Embraer
on a fundamental overhaul of the aircraft.
We are taking the opportunity to put new
engines on brand-new, high-aspect ratio
wings; develop new landing gear; adopt
the next evolution of the cockpit from
Honeywell, the Primus Epic 2; a smaller
empennage; fourth generation closed-loop
fly-by-wire system; a brand new interior
to improve the passenger experience; and
significantly larger overhead bin space.
In addition, we have increased the seat
capacity of the E175 by one row, and the
E195 by three rows. We have right-sized the
family by reducing the number of family
members from four to three. Now we have
the E175-E2, E190-E2 and E195-E2.

Although we have reduced the number of
family members, the envelope of the market
that we are addressing is much wider. For
example the E195-E2 is an aircraft that
has the capacity to address customers
that have more of a LCC model that are
perhaps not even customers of Embraer
today. The E190-E2 is staying exactly the
same size, and that was driven by the airline advisory boards that we had at the
start of the program. The E175-E2 will have
DOCs that compete with today's turbo prop
offerings, particularly above 250 nautical
mile missions.
We took the opportunity to do a fundamental review of the aircraft, but obviously
the basic architecture remains the same.
That's a very important point. And largely,
the materials that we are using are the
same. Specifically, the E2 will not have
a composite wing, although it is a highaspect ratio wing.
Because the fundamental architecture
of the platform remains the same, one of
the dividends of that is the confidence that
the market will have about the entry into
service dates that Embraer is giving. That's
a real asset for Embraer because some of
our more direct competitors have given
entry into service dates that they've had
to revise multiple times.
Secondly, we have a program management team that is the same one who led the
E-Jets into service in 2004 and even before
that, who led the ERJ. That tacit knowledge

12 The ofﬁcial publication of the International Society of Transport Aircraft Trading

JT: What has been the feedback from
customers on the E2 so far?
JS: When we talk about sales, I think
it is quite phenomenal that after approximately 10 and a half months from launching the program, we're at 200 firm aircraft
orders. We expect that 2014 will be a robust
year for sales, for both the E1 and the E2.
One of the points I'm keen to make here is
that because we have cockpit commonality
between the current generation and the E2
generation, we hope to see airlines order
both aircraft families at the same time
because seamlessly they now see a solution
for lift today and lift into the next decade
and the decade thereafter.
Our vision is that in the morning you'll
see a pilot flying an E175 from the current
generation and in the afternoon flying
the E195-E2. We're keeping the cost down
and the simplicity for the airline-in the
sense that there is no simulator training
required for a pilot to go from the E1 to
the E2. In fact, less than three days manual
and classroom training is all that will be
required-that's it. That's a huge cost saving for the airline.
JT: What's your outlook of the market and
the main challenges and opportunities
you see for Embraer?
JS: We see this as a market for over
6,400 jets between 70 and 130 seats in
the next 20 years. In dollar terms, that's
about one-third of a trillion at list prices.
It's a significant market. Our market share
today for sales is just over 50 percent, but
our market share for deliveries is just over
60 percent. We have a solid track record
of delivering what we sell. It's one thing
to announce a sale; it's a different thing
to actually deliver the aircraft.
We are very keen at Embraer to maintain our market leadership position. It's a
stated strategic objective of ours. Given
our franchise footprint (today we have over
65 customers in over 45 countries), as we
move closer to the entry into service of

Jetrader - Summer 2014

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