- Corporate Address
- Avenida Brigadeiro Faria Lima 2170
Sao Jose Dos Campos, SP 12227-901
Phone: 55 12 3927 4404
Fax: 55 12 3922 6000
Embraer - Empresa Brasileira de Aeronáutica SA - is based in São José dos Campos, Brazil, and was founded in 1969 as a government aerospace initiative and then privatised on 07-Dec-1994. On 31-Mar-2006 the majority of Embraer shareholders approved Embraer’s capital restructuring proposal, which consists of a simplified capital structure composed of one type of shares (common shares).
The Company focuses its activities on three business areas and markets:
- Commercial Aviation;
- Executive Aviation;
- Defense Systems.
1,363 total articles
73 total articles
Flybe’s trading statement for 3QFY2014, while not giving details of costs and profitability, suggests it is making good progress with its restructuring programme. In the UK airline, revenues per seat grew by 2.3% and costs per seat (excluding fuel and restructuring costs) fell by 5.2%. In addition, its confidence appears to be growing that it will achieve the cost reduction targets in its Turnaround Plan.
In a sign that Flybe’s new CEO Saad Hammad is not content simply to cut, Flybe has recently announced seven new international routes from Birmingham. It has no competitors on four of these routes, but faces LCC competitors on three. Even after cost reduction, Flybe will still have a significant disadvantage in unit costs against the LCCs.
Its challenges involve attempting to build on its strong market share in the UK regional domestic market to expand in international markets without confronting the LCCs too frequently, while seeking new opportunities across Europe for contract flying on behalf of other airlines and continuing to take costs out of the business.
The not-quite-friendly competition between Boeing and Airbus, as to who can take the most orders and deliver the most aircraft, has seen mixed honours awarded for 2013.
Boeing announced its full year tally last week, delivering 648 aircraft and taking 1,355 orders net of cancellations (1,531 gross). Airbus announced its own orders and deliveries at the beginning of this week. The manufacturer delivered 626 aircraft for 2013 and announced firm orders of 1,503 aircraft (1,619 gross).
But the more important statistic is simply the enormously successful year for both major manufacturers, with ATR, Bombardier and Embraer also experiencing solid growth in 2013 orders and deliveries.
Fuel prices and strong travel demand have pushed the numbers up, but 2014 is less likely to create new records as massive backlogs outweigh production rates.
JetBlue continued the trend of most US carriers turning strong financial performances during 3Q2013 as its profits grew 57% year-on-year to USD71 million driven by a demand environment the carrier deemed as healthy.
The carrier is still battling some cost inflation as FY2013 unit costs excluding fuel and profit sharing are projected to rise between 2.5% and 4.5%. JetBlue stresses it is taking measures to battle the unit cost inflation, noting its sharklet programme for its Airbus A320 fleet to lower fuel burn and fleet changes that include the deferral of 24 100-seat Embraer 190s to support a fleet of 60 of the smaller jets.
Even as JetBlue is taking steps to whittle away at unit cost pressure it has experienced for the last year, the carrier is fielding questions about how it intends to proceed with margin expansion and if it will hit its return on invested capital targets.
bmi regional’s plans to enter the Norwegian domestic market, together with its recently commenced contract flying for Flyglinjen in the Swedish domestic market, highlight its ability to find new regional niches. Seven of its top 10 international routes are monopolies and it has announced 11 new routes in just over a year since its sale by IAG to Sector Aviation Holdings in Jun-2012.
bmi regional’s target is to be profitable in its second full year of operations and its chairman said in Jun-2013 that it was fast approaching a cash neutral position. Not surprisingly, this implies that it is loss-making, and that it will benefit from a focus on unit costs: CASK is king in the airline sector. Once it does start to generate cash, it may consider its fleet replacement options. Not only is the fleet ageing, but also the size of its Embraer jets (50 seats and fewer) are a challenge in matching the unit costs of competitors.
As new markets open up, the major OEMs Airbus and Boeing are seemingly happily ceding part of the market to the smaller manufacturers. Bombardier with its CSeries and now Embraer with its second generation E-Jets are equally content to take advantage of any opening. Others, like the Sukhoi, along with COMAC, Antonov and Mitsubishi, are also moving to occupy some of the vacuum.
Paris smiled on Embraer this month. Despite Bombardier's four year lead on Embraer in launching its new aircraft family, Embraer’s second generation E-Jets have already matched the CSeries in the order books. The Brazilian manufacturer formally launched the E-Jets E2 programme at the Paris Air Show. It has already booked 215 orders, commitments and letters of intent for the re-worked aircraft, from seven different customers, just bettering the CSeries’ total of 214 firm orders and commitments.
Embraer's track record has helped and most of the orders were from one source. SkyWest Airlines, the largest regional carrier in the US, announced a firm order for 100 aircraft, as well as another 100 purchase rights. This is in addition to SkyWest’s previous order in May-2013 for up to 200 current generation E-175 aircraft.
Flybe reported wider losses for FY2013, its third successive year of deteriorating results. Moreover, cash flow weakened, net debt grew and net assets fell. In addition to the challenge of high fuel prices, Flybe has seen a 21% reduction in the UK domestic market since 2007 and its high proportion of domestic traffic has made it particularly exposed to increases in UK air passenger duty. Flybe’s unit costs leave it struggling to compete with LCCs, its load factors are below industry averages in spite of capacity cuts and its labour force is among the least productive in Europe.
In Jan-2013, Flybe announced a turnaround plan, dubbed "Fit to Compete" and updated in May-2013 and Jun-2013. This aims to improve profitability through cutting headcount and other cost efficiencies, to drive revenue enhancements, to generate cash without recourse to shareholders and to restructure the network into a defensible core. The disposal of Gatwick slots to easyJet and deferral of aircraft deliveries will help its cash position, but, while Flybe may no longer be gaining weight, full fitness remains a long way off.
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