Embraer’s re-engined E2 aircraft should prove very successful, given the well-established E-Jet customer base, its strong operating economics, and improved performance. It is expected for Embraer and Mitsubishi to lead the market for regional jets under 100 seats, with the E175-E2 continuing the popularity of the existing E175-E2 in North America and other markets. The E2 program has seen orders grow twice as fast as the E-Jets, and tellingly, twice as fast as its direct competition. The E2 program has 272 firm orders and 670 commitments.
In the 100-150 seats market, Embraer and Bombardier will lead the market, as their E190-E2, E195-E2, CS100 and CS300 aircraft are more efficient than “shrink” models including the Airbus A319neo and Boeing 737 MAX 7. With a leadership position in both segments of the 70 to 130 seats market, Embraer is well positioned to capture a strong share of both regional and mainline airline growth.
The Embraer E2 program represents a second generation of the popular E-Jet series introduced in 2004. The E-Jets, offered in four variants, quickly became best sellers in their respective classes, and to date Embraer has delivered some 1,200 of these aircraft to both regional and major airlines around the world.
The E-Jets were designed a decade ago, before a generation of new technology aircraft engines became available. With more efficient engines available and a period of high fuel costs fueling demanding more efficiency, Embraer embarked upon a redesign of its successful products after only seven years in service to ensure that they remained competitive with emerging new technology airplanes.
The company recognized emerging technologies, combined with new competition, posed a threat to the E-Jet program, and took decisive action to ensure that the aircraft would remain not only competitive, but also a market leader in economics, for the next two decades.
Overall, the expectation is for Embraer to sell more than 2,771 E2 aircraft over the next 20 years, and to continue its market success as a leader in the regional and small narrow-body segment.
Table of Exhibits
- I. Executive Summary
- II. E-Jets History
- III. Market Drivers and Market Size
- IV. Technology and Capabilities
- V. Development and Production
- VI. The Success of Re-Engining Programs
- VII. Threats
- VIII. Comparative Economics
- IX. Program Outlook and Conclusions