- 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.
1,278 total articles
71 total articles
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.
In a couple of weeks bmi regional will cut the umbilical cord with parent bmi and start operating as an independent regional airline under a new ‘BM’ IATA designator and a softly revamped branding. The airline’s network will encompass four UK domestic routes and 11 European routes.
The decision to enter the market carefully and not with a dazzling big bang proves a responsible management that is fully aware of the prevailing challenges faced by regional airlines in Europe. Airline members of the European Regions Airline Association (ERA) recorded a 2.9% decline in scheduled passenger numbers and a 5.5% fall in scheduled RPKs for 1H2012, showing a drop in demand that reflects the current economic climate and uncertain outlook.
The formal split from bmi on 28-Oct-2012 follows the acquisition of the Aberdeen Airport-based regional airline by Sector Aviation Holdings Ltd (SAH) in May-2012 and the preceding purchase of bmi by British Airways’ parent company International Airlines Group (IAG).
As in the rest of Europe, the airline industry in the continent’s Nordic region is undergoing a structural change characterised by bankruptcies and intense competition from low-cost carriers with full-service network airlines implementing cost reduction programmes aimed at securing long-term sustainability or just survival. The region saw yet another operator cease operations in 2Q2012, Air Finland, following on the bankruptcy of Cimber Sterling, Skyways and City Airline in the first three months of the year.
Finnair made outstanding progress in 2Q2012 to lower its cost base and heighten revenue although it could not attain profitability while SAS Group’s pre-tax earnings halved year-on-year to SEK371 million (EUR45.1 million ) despite a one-off SEK346 million (EUR42.1 million) capital gain attributable to property transactions. Norwegian Air Shuttle improved in all operating parameters in the three months ending 30-Jun-2012 and reported a consolidated net profit of NOK90.5 million (EUR12.4 million), up 69% over the year-ago period. The LCC’s operating profit expanded to NOK322.3 million (EUR44.3 million) from NOK72.8 million (EUR10 million) in the year-ago period, and 2Q2012 EBIT margin was a respectable 10.2%.
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