Category Archives: Embraer

Embraer to enter helicopter business

Embraer and AgustaWestland plan to establish a joint venture, which could lead to the production of AgustaWestland helicopters in Brazil, Embraer announced.

The helicopters would be marketed for commercial and military use in Brazil and Latin America.

Brazil is an important market for AgustaWestland and having an industrial presence in the country will help grow its business, Bruno Spagnolini, AgustaWestland CEO, said in a statement.

Preliminary studies by the two companies show market potential for twin-engine, medium lift helicopters for the offshore oil and gas, executive transport and military markets.

Brazil-based Embraer builds commercial, business and military aircraft.

Embraer’s first U.S.-built Phenom 300 makes first flight

Embraer’s first U.S.-assembled Phenom 300 light business jet took its maiden flight this week.

The aircraft was assembled at Embraer’s Melbourne, Fla. plant and will be used by the Brazil-based company as a flight demonstrator.

Embraer officials hail the flight as a milestone for its 23-month-old U.S. production facility.

“The reduction in production time to half of what it took for the first Phenom 100 means the processes we put in place for production have now matured,” Phil Krull, managing director of the site, said in a statement.

The plant is on schedule to produce eight planes per month as it ramps up to full production in the coming months, Krull said.

Embraer opened the facility in February 2011. In December 2011, it opened a 58,000-square-foot customer center at the site.

Last month, it began construction on a $26 million, 67,000 square-foot engineering and technical center. Completion is expected in mid-2014.

The $50 million investment in the site, along with investments in manufacturing elsewhere, reflects Embraer’s commitment to business aviation, the company said.

Embraer adds Phenom 300 to Florida assembly line

Brazil-based Embraer has added the Phenom 300 light aircraft to its assembly operation in Melbourne, Fla.

The first wing and fuselage arrived in late August.

The company currently produces the Phenom 100 at its Melbourne plant.

Embraer added the Phenom 300 to bring production closer to customers, officials said.

The Melbourne facility employs 233 people, including 160 assembly personnel.

Eventually, the assembly line will be able to produce eight planes per month.

The first Phenom 300 to come off the line is scheduled for delivery in March, one of more than 12 scheduled for production in Melbourne next year.

Embraer is also developing an engineering and technology center at the site, scheduled for completion next year.

It plans to add 200 employees at the center over the next five years.

Embraer, AVIC forge joint venture to build business jets in China

Brazil-based Embraer and the Aviation Industry Corp. of China have signed an agreement to build Embraer’s Legacy 600/650 executive jets in China.

Embraer said it will use the infrastructure, financial resources and work force of its joint venture, Harbin Embraer Aircraft Industry Co., which began in 2002.

The deal was signed during a visit to Brazil by China Prime Minister Wen Jiabao.

Embraer also announced an order for 10 Legacy 650 jets with ICBC Leasing, including five firm orders and five options.

The order makes ICBC Leasing the launch customer of HEAI’s Legacy 600/650 program, the company said.

With the deal, Embraer has 159 firm orders from China for commercial and executive jets.

Hawker Beechcraft competitor Sierra Nevada files lawsuit in light air support contract

Sierra Nevada Corp. filed a lawsuit Tuesday seeking the reinstatement of a light air support contract from the Air Force.

The suit was filed with the U.S. Court of Federal Claims.

The action is in response to a lawsuit filed by Hawker Beechcraft following its disqualification in the competition.

The Air Force set aside the contract to Sierra Nevada in March, opened an investigation into the source selection process and reopened the competition.

“The cancellation of the contract was an extreme response to what appears to be paperwork errors on the part of the USAF,” Sierra Nevada said in a statement.

Sierra Nevada alleges the revised Request for Proposal is “tilted in favor of the competition.”

The company has not received adequate explanation or justification for the contract’s termination, it said.

Sierra Nevada has partnered with Brazil-based Embraer to offer the Super Tucano to the Air Force.

Hawker Beechcraft’s bid is for the AT-6, an upgraded T-6 trainer used to train Air Force and Navy pilots.

 

Report: U.S., Brazil resume talks on light air support contract

It didn’t take long for the U.S. and Brazil to resume talks about a U.S. Air Force light air support contract after the Air Force last week canceled the award made to Sierra Nevada Corp. and Brazil-based Embraer, according to Defense News.

Brazilian Foreign Minister Antonio Patriota had a  “cordial and frank” conversation with U.S. Deputy Secretary of State William Burns at a meeting in Brasilia, Brazil, March 2, the report said.

The conversation followed a warning by the Brazilian government that the cancellation could damage military relations.

“The Brazilian government learnt with surprise of the suspension of the bid process” the foreign ministry said, according to the Financial Times. “This development is not considered conducive to strengthening relations between the two countries on defense affairs.”

The Air Force canceled the $355 million contract for 20 Embraer-built Super Tucanos last week after Hawker Beechcraft filed suit alleging problems with he acquisition process.

“The doors are not closed, the issue was the subject of discussion and there is still a possibility that the plans will be sold to the United States,” Foreign Ministry spokesman Tovar Nunes told Defense News.

The contract was canceled a month before an official visit to the United States by Brazilian President Dilma Rousseff, the report said.

“Burns clearly said there was no hostility on the American side with regard to Brazilian interests,” the spokesman told Defense News. “It was not a matter of a definitive decision that could close the doors” to a negotiation.

The Air Force excluded Hawker Beechcraft from the competition in November and awarded the contract to Sierra Nevada the following month.

Hawker Beechcraft and members of the Kansas delegation have been asking the Air Force for a debriefing on the reasons behind the exclusion without success.

In January, the company filed a lawsuit regarding the acquisition process.

Last week, the Air Force canceled the contract and launched an investigation.

A court document said the Air Force intends to reinstate Hawker Beechcraft to a “competitive range,” accept new proposals from Hawker and Sierra Nevada, conduct meaningful discussions with the parties and re-evaluate proposals, the Financial Times said. It also reserves the right to conduct a new competition.

Air Force “setting aside” light air support contract awarded to Sierra Nevada

The Air Force is setting aside a light air support contract awarded to Sierra Nevada Corp., saying that its acquisition executive is “not satisfied with the quality of the documentation supporting the award decision.”

The Air Force advised the Department of Justice of the action, which is effective March 2.

“While we pursue perfection, we sometimes fall short, and when we do we will take corrective action,” Michael Donley, secretary of the Air Force, said in a statement.

General Donald Hoffman, commander of Air Force Materiel Command, has initiated an investigation into the matter, the Air Force said this morning.

The Air Force declines further comment beyond its statement because the acquisition is in litigation.

Hawker Beechcraft filed suit in January after it was eliminated from the competition, questioning the selection process and seeking to determine whether the bidding process was conducted legally. The Air Force had issued a temporary stop work order on the contract as a result.

Sierra Nevada is Brazil-based Embraer’s U.S. partner on the contract. The company offered the Air Force Embraer’s Super Tucano. Hawker Beechcraft offered its Wichita-built AT-6 turboprop, based on its T-6 trainer, in the bidding.

The Air Force eliminated Hawker Beechcraft from the competition in November, saying it had not adequately corrected deficiencies in its proposal. Hawker Beechcraft officials have said that the specifications kept changing during the selection process.

The Air Force awarded the contract to Sierra Nevada in December.

The company and Rep. Mike Pompeo held a joint news conference in January saying they want the Air Force to explain why the company was excluded from the contract, which is expected to be worth up to nearly $1 billion with follow-on contracts.

The light air support aircraft will be used in Afghanistan to conduct advanced flight training, aerial reconnaissance and light air support operations.

First shipments were to begin in April 2013, but the Air Force has said it now expects delays because of the lawsuit.

 

 

Pompeo, Boisture to Air Force: Tell us why Hawker Beechcraft was excluded from LAS contract

Hawker Beechcraft CEO Bill Boisture and U.S. Rep. Mike Pompeo had one message this morning at a press conference inside a company hangar in east Wichita.

They want the Air Force to explain why it excluded the company’s bid for a light air support contract worth up to nearly $1 billion.

“We want to know,” Boisture said.

In November, the company was informed it had been excluded. The Government Accountability Office rejected its request for a briefing and its protest, saying both were filed after the deadline.

The GAO also said in its report that that fact doesn’t mean the Air Force can’t debrief the company.

So far, it’s not responded to requests from Pompeo, members of the Kansas delegation and Hawker Beechcraft.

It also quietly awarded the contract to Sierra Nevada Corp., who has partnered with Embraer to supply Super Tucano turboprops, on Dec. 22. But it didn’t announce the award until Dec. 30, Pompeo said.

“That is highly unusual,” Pompeo said.

Boisture agreed.

“We believe there’s been a flaw in the acquisition process,” he said.

Hawker Beechcraft offered the Air Force, its AT-6 turboprop, based on its T-6 trainer.

The loss of the contract puts at risk a $100 million investment by Hawker Beechcraft and its partners made over four years, Boisture said.

The program also represents 1,400 U.S. jobs, including 800 at the company.

The contract to Embraer, in contrast, will create 50 jobs at an Embraer site it will open in Jacksonville, Fla., he noted.
“That will allow them to deliver an airplane out of a hangar in Florida and call it a U.S. airplane,” Boisture said.

Flight Options obtains financing from Brazilian bank for business jets

Flight Options, a fractional jet company based in Cleveland, has secured $167 million in financing from Brazil’s Export-Import Bank to buy Phenom 300 jets from Brazil manufacturer Embraer.

It’s the first agreement between Banco Nacional de Desenvolvimento Economico e Social and a fractional jet operator. The money will be guaranteed by the Brazilian Ministry of Finance.

In 2007, Flight Options placed an order for 100 Phenom 300 business jets with an option for 50 more. The deal is valued at $1.2 billion at list prices.  Flight Options began taking delivery in May 2010 and has eight Phenom 300 light jets currently in service.

It plans to have 15 in operation by the end of the year.

As sales have increased, Flight Options has been recalling furloughed pilots, reopening maintenance centers and investing in customer service and operations, the company said.

Boeing discusses virtues of 737 replacement at Paris Air Show

The rain didn’t stop thousands from attending the first morning of the Paris Air Show, which opened at Le Bourget Airport north of Paris.

Inside the dry conference center this morning, Boeing’s head of commercial aircraft, Jim Albaugh, said separate teams at Boeing are focusing on putting new engines on its popular 737 airliner or developing a new plane to replace it. Each has advantages.

A redesign is technically viable and and could present an 8 percent operating cost advantage to operators and a lower risk to the company, Albaugh said.

A new airplane would be more costly and risky for Boeing, but it would give operators double-digit operating cost improvements and a plane poised for generations to come.

“I think going with a new airplane certainly is a strategic one, and one that would take care of our customer even better,” Albaugh said.

This time when it designs the plane, it would design the production system together. Whether it would be built at a new facility or require the expansion of a current facility hasn’t been decided.

Boeing expects the market for the plane to eventually surge to a record 60 to 70 per month.

And while it will have global partners as it does with the 787 Dreamliner, it will “redraw the lines” and keep more of the work in-house.

“We put too much outside on the 787,” Albaugh said.

Mike Bair

Mike Bair, head of advanced 737 product development for Boeing

If it chooses to go with a new airplane, it will go through the plane “piece by piece,” making decisions on whether it will be built from carbon or metal.

But the “baseline is carbon,” said Mike Bair, head of advanced 737 product development.

Spirit AeroSystems would be a contender to be a partner on a new airplane, Bair said.

“They use to be us,” said Bair, referring to the Wichita company’s roots as a division of Boeing’s commercial aircraft company.

A Boeing supplier could end up with a large section of a new aircraft, Bair said. But “it would be an open field.

Boeing also announced an agreement from Air Lease Corp. for up to 33 jetliners — 24 7373-800s, five 777-300ERs, and four 787-9 Dreamliners. It also announced an order from Qatar Airways for six 777-300ER airliners valued at $1.7 billion at list prices.

And it announced orders and commitments for 17 747-8 Intercontinental airliners from two undisclosed customers. The combined deals are valued at $5.4 billion at list prices. One customer has committed to 15 of the passenger version; another placed an order for two.

Embraer, meanwhile, has received orders for 39 Embraer 190 regional jets valued at $1.7 billion from Air Lease Corp., Air Astena, General Electric, Sriwijaya Air and Kenya Airways.

It also released a forecast for commercial planes in the 30 to 120 seat segment. Embraer projects demand for 7,225 planes from 2011 to 2030.