Embraer Executive Jets CEO sees growth opportunities

Avatar for Ben ForrestBy Ben Forrest | October 31, 2016

Estimated reading time 5 minutes, 1 seconds.

Embraer Executive Jets president and CEO Marco Tulio Pellegrini is pitching business aviation as a possible alternative for executives, consultants and other professionals who rely on airlines.

Embraer Legacy 650E flying with bridge and greenery in background.
Embraer has unveiled a new version of its Legacy 650 large business jet, the Legacy 650E. Embraer Image

Pellegrini made the remarks in a press conference at the National Business Aviation Association Business Aviation Convention and Exhibition (NBAA-BACE) in Orlando, Fla., on Oct. 31.

Senior vice-presidents, consultants and lawyers are not well-served by airlines, said Pellegrini. He asked rhetorically if there is a better way to serve that kind of audience.

“That’s a question mark,” he said before listing some of the drawbacks of airline travel and outlining the benefits of private jets.

The big difference is the price, he conceded–a round trip from San Diego to San Jose, Calif., with a private jet charter company can cost nearly twice as much as an airline flight.

But Pellegrini pointed to benefits like reduced travel time, more privacy and the ability to work during flight.

“The biz jet is a tool,” he said. “It’s not a luxury.”

Pellegrini pointed to ride-hailing app Uber and the revolution it created in ground transportation.

“Uber is a fact,” he said before asking: Why not bring the same concept to the executive aviation industry?

He again used the example of senior VPs and lawyers who need to travel often and go to city pairs that are not well-served.

“Imagine the hassle,” he said. “So demand is there.”

Forecasting demand

Pellegrini also presented Embraer’s business jet outlook for the next 10 years, forecasting an increase over the last decade.

Embraer predicts demand for 8,400 jets worldwide between 2017 and 2026, with a value of US$244 billion.

That’s compared with the 8,166 jets sold between 2006 and 2015.

The company predicts North America (56 per cent) and Europe and Africa (23 per cent) will be the largest markets in the decade ahead.

Asia Pacific and the Middle East (eight per cent) is predicted to be the third-largest market, followed by China and Latin America (both at seven per cent).

Legacy 650E launch

Embraer also unveiled a new version of its Legacy 650 large business jet, the Legacy 650E.

Embraer Legacy 650E interior
The Legacy 650E features restyled seat upholstery and three distinct cabin zones. Embraer Photo

It features automation and technology updates and now carries a 10-year or 10,000 flight hour warranty. The entry into service is scheduled for 2017 at a list price of US$ 25.9 million.

“As a testament to our confidence in the Legacy 650’s heritage of robustness and near-perfect dispatch reliability, this new aircraft carries the longest warranty available in the business jet industry,” said Pellegrini in a news release.

“Whether for commercial or private operations, there is no large-cabin aircraft that is more economical, durable and comfortable. This is a truly well-rounded value proposition.”

The Legacy 650E features restyled seat upholstery and three distinct cabin zones with ample privacy, plus the executive option for a separate crew lavatory in the forward cabin.

Refinements to the flight deck include the synthetic vision system (SVS), as part of the latest Primus Elite Advanced Features (PEAF) from Honeywell, which also includes traffic collision avoidance symbology and XM ground-based weather information to the moving map, providing pilots with enhanced situational awareness.

The Legacy 650E also comes with autothrottle as standard equipment, improving the level of automation and reducing the cockpit workload.

Two iPads with mounting systems are also available in the cockpit, enabling pilots to enjoy a friendlier interface, easier updates and a full range of other tools to support their operation.

The Legacy 650E carries up to 14 passengers and may be configured with up to two lavatories.

It features internet connectivity and the latest generation in full HD in-flight entertainment, with Honeywell’s Ovation Select entertainment and cabin management system.

The aircraft has a range of 3,900 nautical miles (7,223 kilometres) with four passengers, with NBAA IFR fuel reserves.

Its interior warranty remains the same at two years, as does exterior paint at two years or 1,000 hours; engines at five years or 2,500 hours; APU at five years, 3,000 hours or 6,000 cycles; and avionics at five years or 5,000 hours.

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