Airline Market Airline Market OutlookOutlook
The Future Role of The Future Role of 30 to 12030 to 120--seat seat
Commercial Commercial AircraftAircraft
New York New York Wednesday, April 12Wednesday, April 12thth, 2006, 2006Frederico Fleury Curado
Executive Vice-President, Airline Market
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
This presentation includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: general economic, political and business conditions, both in Brazil and in our market. The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,”“expects” and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.
Forward Looking Statement
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Current Scenario
Key Global Market Trends
Important Issues in the 30-120 Seat Segment:
RJ 50: an intrinsic part of the air transportation system
E-Jets: matching aircraft capacity to market demand
Market Forecast
Contents
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
0% 1% 2% 3% 4% 5% 6% 7% 8%
China
Asia Pacific
Middle East
Africa
Russia & CIS
Europe
Latin America
USA, Canada & Caribbean
World
RPKGDP
Source: Global Insight and Embraer
Positive World Economic Scenario2006-2025 economic scenario is sustaining Air Travel Demand growth
Projected Traffic and Economic Growth by Region (Average Annual Growth)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
0
1000
2000
3000
4000
5000
6000
700019
95
1996
1996
1998
1999
2000
2001
2002
2003
2004
2005
2006
F
2007
F
Bill
ion
(RPK
& A
SK)
62%
64%
66%
68%
70%
72%
74%
76%
78%
80%
% (L
oad
Fact
or)
RPK ASK Load Factor
Increased Air Travel DemandTraffic is recovering at strong growth rates but in another environment
Source: ICAO - Contracting States - Scheduled Airlines
6.3% yoy 7.7% yoy 6.4% yoy
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Revenue EnvironmentWorld yields are improving, but trend in real terms remains down
Source: ICAO (Contracting States - Scheduled Airlines), Global Insight (USA CPI Inflation) and IATA Economics
World real yields in 2005 are 28% lower than 1994 values in an environment where LCCs pricing power is the main driver.
65
70
75
80
85
90
95
100
105
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005F 2006F 2007F
Inde
x (1
994=
100)
World Nominal Yield
World Real Yield (adj. for US inflation)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
End of Cheap Jet Fuel
Lack of spare oil production capacity remains high price trend
Source: EIA – Energy Industry Administration (Mar 31st, 2006)
4550556065707580859095
Jan0
5
Mar
05
May
05
Jul0
5
Sep0
5
Nov
05
Jan0
6
Pric
e (U
S$/B
arre
l)
Crude OilJet Fuel
50
55
60
65
70
75
80
85
1970
1975
1980
1985
1990
1995
2000
2005
Mill
ions
of B
arre
l per
Day
CapacityDemand
For coming years oil barrel is expected to stay at US$60 level and jet fuel around US¢170/gallon
Current price40% higher thanJan/05
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
World Financial Net ResultsNet results improving. Strong net profit expected for 2007.
2005 2006F 2007F
-0.1 -0.4 0.5
Europe
MEast & Africa
Source: IATA Economics
2005 2006F 2007F
-6.0 -2.2 7.2
World
2005 2006F 2007F
2.9 2.0 3.1
Asia Pacific
2005 2006F 2007F
0.2 0.2 0.4
Latin America
2005 2006F 2007F
-10.8 -5.4 1.1
North America
2005 2006F 2007F
1.8 1.4 2.1
Values in US$ Billion
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Higher Competitive EnvironmentLCC will keep capturing market share from Network carriers
Source: Back Aviation and Embraer
76%60%
19%
29%
11%
57%
31%
5%12%
2000 2005 2010E
Network LCC Regional
USA Domestic RPM Intra Europe RPK
72%65%
11% 19%
17% 16%
50%
34%
16%
2000 2005 2010E
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
52% 49% 45%
48% 51% 55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1995 2000 2005
OthersAirlines
Top 15Airlines
Higher Competitive EnvironmentTop 15 capacity market share declined 13%
Wor
ldTo
tal A
SK S
hare
(%)
Source: Back AviationTop 15 Airlines: American, Delta, United, Continental, British Airways, Northwest, Lufthansa,
Air France, Southwest, Japan Airlines, Singapore, US Airways, Qantas, Air Canada, All Nippon
13%
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Strong Effort to Reduce CostsLabor cost reduction has not been enough
Source: ATA – Air Transport Association (USA Majors and National Passenger Carriers - 3Q05)
3%6%3%-3%6%% y-o-y
11.8411.4610.8310.5210.9010.31(¢/ASM)Total
3.253.072.512.332.652.40(¢/ASM)Other
0.170.190.190.220.250.29(¢/ASM)Maintenance Material
0.250.250.250.230.210.19(¢/ASM)Landing Fees
0.980.930.900.880.920.90(¢/ASM)Professional Services
1.511.601.661.641.621.52(¢/ASM)Ownership
32%33%18%-12%-4%% y-o-y
2.571.941.461.231.401.46(¢/ASM)Fuel
-11%-10%-3%3%9%% y-o-y
3.103.483.863.993.863.55(¢/ASM)Labor
200520042003200220012000
USA: fuel expenses are burning airline´s cost savings
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
3
4
5
6
7
8
2001 2002 2003 2004
Shor
t-hau
l uni
t cos
t (U
S¢/A
SK)
Network
Jetblue
Southwest
USA
3
5
7
9
11
13
2002 2003 2004
Shor
t-hau
l uni
t cos
t (Eu
ro¢/
ASK
)
Europe
Network
easyJet
Ryanair
LCC & Network Cost ConvergenceThe cost gap is closing
Source: IATA Economics
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
0%
10%
20%
30%
40%
50%
Pricing
Convenient fl
ight sch
edules
Frequen
t flye
r pro
gramme
Airline sa
fety r
ecord
Best f
or my c
onnectin
g flight
Airline re
putation
Aircraf
t type
Connection tim
eAirli
ne network
Ponctuality
of flights
AmericasEurope
Asia PacificAfica & Middle East
Source: IATA - 2005 Corporate Air Travel Survey
Top 10 factors of airline choice for SHORT-HAUL flights by regionPricing:
• 1st - Americas• 1st - Europe• 3rd- Asia Pacific• 6th- Africa&ME
Convenient Flight Schedules:
• 2nd - Americas• 2nd - Europe• 4th - Asia Pacific• 3rd - Africa&ME
What the Passengers Want Pricing and convenient flight schedules are main passengers priorities
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
6,018routes with less than two
average daily frequency
USA & EuropeAverage Daily Frequency by RouteRoutes operated exclusively by Jet Aircraft from 91 – 175 seats up to 2000 nm
34%
41%
17%
6%2%
0 - 0,5 0,5 - <2 2 - <5 5 - <10 >=10
Average Daily Frequency
% o
f Rou
tes
Source: Back Aviation (OAG 4Q05)
Opportunities for RightsizingAdditional opportunities are still in the marketplace
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
49% of flightsdepart with loads appropriate
for 70-110 seat aircraft
Source: Back Aviation (T100)
2005 USA Domestic Flights (Jet aircraft ≥ 100-seat)
1 1
57
16
20
17
10
6 6
3
8
0
5
10
15
20
25
<50 50 60 70 80 90 100 110 120 130 140 ≥150Pax per Departure
% o
f Flig
hts
Airlines could improve efficiency by better matching demand with aircraft capacity
Opportunities for Rightsizing
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
USA domestic average seats per aircraft is decreasing
118
120
122
124
126
128
130
2000 2001 2002 2003 2004 2005 2006
Seat
s pe
r Airc
raft
Capacity Adjustment Already Under Way
Source: 2006 FAA Report
The replacement of old / inefficient NB fleet and the deployment of new generation RJs are providing more flexibility and efficiency for airlines.
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
610
305
522
214
316
214 205
0
100
200
300
400
500
600
700
0-5 6-10 11-15 16-20 21-25 26-30 >30
Aircraft Age (Years)
Num
ber o
f Airc
raft
(Uni
ts)
Ageing World Fleet in Service (61-120 seats)
Source: Back Aviation (Dec/05)
• 31% of total world fleet is
more than 20 years old and
shall start to be replaced in
the coming years.
• Old technology equipment:
inefficient and expensive
aircraft to operate.
735aircraft older than
20 years
Old Jets Replacement Opportunities
Where is the RJ 50
market going?
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Regional Airlines – Europe
TP 19953026 routes723 aircraftAv. stage length:200 nm (370 km)
TP 20052810 routes666 aircraftAv. stage length: 231nm (428 km)
RJ 20051722 routes294 aircraftAv. stage length: 387 nm (717 km)
RJ 1995273 routes37 aircraftAv. stage length:414 nm (767 km)
Last 10 years: RJ fleet grew 700% and TP shrank by 8%
Source: Back Aviation (OAG Jan/06; RJ: ERJ 145 Family, CRJ 100/200 and 328JET)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Regional Airlines – USA
RJ 20052888 routes1358 aircraftAv. stage length: 395 nm (732 Km)
TP 2005902 routes740 aircraftAv. stage length:159 nm (295Km)
TP 19951908 routes1599 aircraftAv. stage length: 179 nm (332 Km)
RJ 1995180 routes36 aircraftAv. stage length: 391 nm (724 Km)
Last 10 years: RJ fleet grew 3600% and TP fleet shrank 54%
Source: Back Aviation (OAG Jan/06: RJ: ERJ 145 Family, CRJ 100/200/440 and 328JET)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
RJ 50 in the USA – Main Trends
Source: Embraer
Mature Market – no additional major orders
USA scope relaxation shifted demand to bigger RJs
RJ50s will keep their importance as hub feeders and long thin point-to-point routes
...
But, can the RJ50 market get sustained?
Main Trends that we already know:
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Source: Back Aviation (T100 and OD1A: RJ: ERJ 145 Family, CRJ 100/200/440 and 328JET). 2006 FAA Report (DOT Form 41 & Form 298C)
USA Hub & Spoke System
1. RJs are responsible for 22% of all USA domestic passengers2. RJs: 3 connecting passengers for each local passenger
Hubs are largely dependent on RJs
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
0
20
40
60
80
100
120
140
160
180
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
New
Mar
kets
per
Yea
r
TP Replacement Jet Complement/Replacement New Routes
RJ 50 Evolution - USA
New Markets Opened per Year
• Scope Clauses• TP avoidance factor• RJ phenomena
Sep 11, 2001
• Scope Clausesrelaxation
• Low density marketopportunities
• RJs as single serviceproviders
Source: Back Aviation (OAG ; RJ: ERJ 145 Family, CRJ 100/200/440 and 328JET)
• Sep 11 impact(right-sizing)
• Replacing old andinneficicent jets
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
New Market Opportunities - USA
Source: Back Aviation (OAG 2005)
136 potential markets without any direct service
Selection Criteria:
1. Market Demand: 25-75 PDEWs without direct flights
2. Distance Profile: 250 -- 1500 mi3. Revenue Environment: Yield >= RJ Yield
New market opportunities
Note: RJ Yield Curve = 2005 Yields for ExpressJet and Pinnacle – 1 coupon)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
New Market Opportunities – EU
Source: Back Aviation (OAG) and Embraer
0 40 80 120 160 200
2001-2005
1996-2000
Markets
Primary-Primary
Primary-Secondary
Secondary-Secondary
Point-to-Point – new routes to secondary cities/airports is increasing
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Source: China Airline Traffic Statistics 2004. Only domestic routes less than1,500 nm
RJ 50 Market Opportunities – China Most of the routes have low demand density and low frequencies.
59% of total routes have less
than 1 daily frequency and
less than
135 pax/day
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Yak-40Jet – 30 seats
122 aircraftAverage Age: 31 yrs
RJ 50 Market Opportunities – Russia
Tu-134
Turboprop - 50 seats122 aircraft
Average Age: 34 yrs
Jet - 76 seats123 aircraft
Average Age: 28 yrs
Jet - 120 seats54 aircraft
Average Age: 17 yrs
30-60Seat Segment
244 aircraft33 years old
(average)
An-24
61-90Seat Segment
91-120Seat Segment
Yak-42
Old Fleet Replacement
Source: BACK (Fleet PC Feb06)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
RJ 50 Parked Aircraft
Source: Back Aviation (Fleet PC Mar31,2006)
90CRJ100/200/440USA, Canada & Caribbean
5ERJ145Latin America
2ERJ145
15CRJ00/200/440Europe
1ERJ 145Africa
Parked (as of Mar/06)
Aircraft TypeRegion
6%
1%
10%
% of Fleet Parked
113
8
105
Parked (as of Mar/06)
Total
ERJ145
CRJ100/200/440WORLD
Aircraft TypeRegion
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
RJ 50 Residual Value (RV) EvolutionRV by Quarter at 12 Years Age
ERJ 145s are sustaining Residual Values
Source: MBA Avitas Airclaims, et al
0.001.002.003.004.005.006.007.008.009.00
10.00
2002
Q420
03Q1
2003
Q220
03Q3
2003
Q420
04Q1
2004
Q220
04Q3
2004
Q420
05Q1
2005
Q220
05Q3
2005
Q420
06Q1
2006
Q2U
S$ M
illio
n
ERJ 145CRJ-200
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
RJ 50s Future
1. Will remain the backbone of USA hub feeding system
2. Potential for increasing frequencies in the USA and EU
3. New market opportunities in the USA and EU
4. Potential in China, Russia and other markets
5. Secondary market developing
6. ERJ 145 retaining Residual Values
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
ERJ 145 Family Orderbook
45
10
20
15
FirmBacklog
8491,073179894Total
667834157677ERJ 145
741142094ERJ 140
1081252123ERJ 135
DeliveriesTotalOptionsFirm Orders(as of December 31st, 2005)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
ERJ 145 Family
The Evolution of Regionals
The 70 to 110-seat jet market evolution
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Source: Back Aviation (T100)
0%
5%
10%
15%
20%
25%
30%
35%
<50 50 60 70 80 90 100 110 120 130 140 ≥150
Pax/Dep 2000 Seats/Dep 2000Pax/Dep 2005 Seats/Dep 2005
USA Domestic: Pax & Seats per DepartureJet aircraft (70-150 Seats)
% o
f Flig
hts
USA Industry is becoming more efficient through better matching demand with aircraft capacity
Pax/dep
Seats/dep2000
2000
2005
2005
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
0
1000000
2000000
3000000
4000000
2000 2005 2000 2005 2000 2005
Num
ber o
f Flig
hts
20-40% 41-60% 61-80% 81-95%
USA Dom.: Further Capacity Adjustment Opportunities
Load Factor distribution for USA domestic jet flights
RJ 50 70-110 Narrow-body (120-150)
There are further opportunities in the capacity adjustment process
Source: Back Aviation (T100)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
0
100000
200000
300000
400000
RJ 50 NB 120-150
Num
ber o
f Ann
ual F
light
s
LFactor: 81-95% LFactor: 20-60%Source: Back Aviatio (T100 2005)
USA Dom.: Detail of Capacity Adjustment Opportunities
0
1000000
2000000
3000000
4000000
2000 2005 2000 2005 2000 2005
Natural Growth Right-sizing
E-Jets: The 70 to 110-seat market evolution
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
RightRight--sizingsizing
41%
Natural Natural GrowthGrowth
45%
0%
25%
50%
75%
100%
Source: Back Aviation (OAG 4Q05 routes)
% of Routes (4Q05)
New New RouteRoute
14%
E-Jets Family @ USA and Canada
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Source: Back Aviation (OAG 4Q05 routes)
28 E17078 routesAvg. Stage Length: 532 nm (985 km)
14 E17528 routesAvg. Stage Length: 468 nm (867 km)
3 E19018 routesAvg. Stage Length: 624 nm (1156 km)
7 E19020 routesAvg. Stage Length: 344 nm (637 km)
28 E17064 routesAvg. Stage Length: 553 nm (1024 km)
9 E17020 routesAvg. Stage Length: 1120 nm (2074 km)
Dec/05: 89 EMBRAER 170/190 in service228 routes
Avg. Stage Length: 556 nm (1030 km)
Dec/05: 89 EMBRAER 170/190 in service228 routes
Avg. Stage Length: 556 nm (1030 km)
E-Jets Family @ USA and Canada
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
% of Routes (4Q05)
RightsizingRightsizing
57%
Natural Natural GrowthGrowth
39%
New New RouteRoute
4%
0%
25%
50%
75%
100%
Source: Back Aviation (OAG 4Q05 routes)
E-Jets Family @ Europe
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Source: Back Aviation (OAG 4Q05 routes)
1 E1706 routesAvg. Stage Length: 456 nm
Dec/05: 21 EMBRAER 170 in service187 routes
Avg. Stage Length: 464 nm (859 Km)
Dec/05: 21 EMBRAER 170 in service187 routes
Avg. Stage Length: 464 nm (859 Km)
6 E17022 routesAvg. Stage Length: 361 nm
4 E17036 routesAvg. Stage Length: 396 nm
10 E17074 routesAvg. Stage Length: 539 nm
E-Jets Family @ Europe
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
E-Jets Family @ Asia & Middle East
Source: Back Aviation (OAG Feb/06)
1 E1702 routesAvg. Stage Length: 598 nm
1 E1703 routesAvg. Stage Length: 417 nm
5 E17061 routesAvg. Stage Length: 305 nm
% of Routes (Feb06)
RightsizingRightsizing
71%
Natural Natural GrowthGrowth
New New RouteRoute
29%
0%
25%
50%
75%
100%
Dec/05: 7 EMBRAER 170/190 in service66 routes
Avg. Stage Length: 319 nm (591 km)
Dec/05: 7 EMBRAER 170/190 in service66 routes
Avg. Stage Length: 319 nm (591 km)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
RA
SK /
M
Capacity
Regional Airlines
Beyond the Current Models...
There is a need for a new TOOL
Network Airlines
Low Cost Carriers
E-JetsE-Jets
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
E-Jets Family – Efficiency to all Business Models
Regional Network Low Cost
Source: 4Q05 Embraer Orderbook and Back Aviation (OAG 4Q05 routes)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
70 to 110-seat Jets Future
1. Traffic growth on RJ 50 routes
2. Capacity increase on regional routes at peak hours
3. Mainline like services on regional routes
4. Right-sizing of low load factor narrow body flights
5. Replacement of old and inefficient jets
6. Expansion into medium density markets
7. Similar or higher service level compared to narrow body existing fleets
LOW
CO
STN
ETW
OR
KR
EGIO
NA
L
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
The E-Jets Family
The 70 to 110-seat market evolution
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Operators 12Aircraft in Service 131Flight Hours 286,200Flight Cycles 192,132
E170/190 Family
EIS Statistics – E-Jets Family
Note: As of Mar 28th 2006
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
E-Jets Family Orderbook
* ECC leasing (Dec 31th, 2005)
Aircraft Customer Firm Orders Delivered Firm
BacklogALITALIA 6 6 0CIRRUS 1 1 0FINNAIR 10 4 6GECAS 8 7 1LOT POLISH 6 6 0PARAMOUNT* 2 1 1REPUBLIC 48 37 11SAUDIA 15 2 13SWISS 15 0 15TAME 2 0 2US AIRWAYS 85 28 57AIR CANADA 15 14 1LOT POLISH 4 0 4GECAS 3 0 3AIR CANADA 45 3 42COPA 12 2 10FINNAIR 6 0 6GECAS 20 0 20JETBLUE 101 7 94REGIONAL CAE 6 0 6TAME 1 0 1FLYBE 14 0 14SWISS 15 0 15
440 118 322
170
195TOTAL
190
175
Market Forecast
2006-2025
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Embraer Market Forecast
TOTALTOTAL
91 91 –– 120120
61 61 –– 9090
30 30 -- 6060
SegmentSegment
3,2003,200
1,2501,250
1,3001,300
650650
2005 2005 -- 20142014
7,8007,800
3,0003,000
2,8502,850
1,9501,950
2005 2005 -- 20242024
7,9507,950
3,4503,450
2,9502,950
1,5501,550
2006 2006 -- 20252025
Source: Embraer
Worldwide Jet Deliveries by Capacity Segment
30 to 120-seat segment value = US$ 180 billion
3,3503,350
1,5501,550
1,3001,300
500500
2006 2006 -- 20152015
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Embraer Market Forecast (2006-2025)
AsiaPacific
4105%
China5907%Africa &
Middle East2804%
USA, Canada& Caribbean
4,23053%
30 - 120 Seats: 7,950 Jets
Europe1,45018%
LatinAmerica
4656%
Russia & CIS5257%
Source: Embraer
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
Jet Fleet Evolution (30-120 seats)Fleet in Service – Current and Embraer´s Projection
Source: Back Aviation and Embraer
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1995 2000 2005 2015 2025
Num
ber o
f Airc
raft
30-60 61-90 91-120 Projected Fleet in Service
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.70 airlines. 43 countries. 1 manufacturer. EMBRAER70 airlines. 43 countries. 1 manufacturer. EMBRAER
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