While demand in its No. 1 market has remained concentrated on the smaller, first-generation E175-E1, Brazilian planemaker Embraer (EMBR3.SA) has been attempting to pitch U.S. airlines on the virtues of its E195-E2 jet as a “small narrowbody.”
In the third quarter, American Airlines (AAL.O) and SkyWest (SKYW.O) placed new orders for 23 E175-E1 aircraft from the world’s third-largest planemaker, Boeing (BA.N) and Airbus (AIR.PA). However, the company still has an opportunity for its second-generation aircraft to receive its first orders there.
“It is an aircraft that can very well complement the operation of large narrowbodies,” Francisco Gomes Neto, the CEO, stated in a Monday interview.
For the aircraft manufacturer, expanding into the American market with the E2 family would be a significant step toward enhancing its production mix, which this year should see the delivery of more second-generation planes than first-generation ones for the first time.
Gomes Neto expressed his hope that Porter Airlines, a Canadian airline, will demonstrate the aircraft to U.S. airlines with new routes to destinations like Tampa and San Francisco.
Since 2021, the Canadian company has placed many orders with Embraer, becoming the first E2 client in North America.
There are up to 146 seats available on the E195-E2, compared to up to 88 seats on the E175-E1.
“I think we’ll manage to convince them that the E195-E2 is not a regional plane, but what we’ve been calling a ‘small narrowbody’ that the majors could operate very efficiently, helping them offer a higher frequency of flights during the day, explore routes, and open routes,” Gomes Neto stated.
“We have a huge opportunity in the U.S.” He listed airlines that have managed to operate the E195-E2 and bigger narrowbodies like the Airbus A320: KLM (AIRF.PA) and Azul of Brazil. The Dutch airline also flies the E175.
“This airplane is really efficient. We’ve been attempting to demonstrate to the American airlines how lucrative it is to fly it with an 80% load factor.”
The CEO clarified that this does not imply that demand for the E175-E1 will decline and stated that the business expects the market to reach at least 300 aircraft during the next ten years.
According to Gomes Neto, operators of the E175-E1, which Embraer has named the backbone of the U.S. regional aviation industry, would likely undertake fleet renewal activities as the recent pilot scarcity in the country lessens.
“It’s a versatile plane that meets that regional aviation demand very well,” the chief executive officer stated. “So we expect excellent demand for it, but we are already working to convince airlines about the E2’s potential.”
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