Boeing og Airbus forklarer sin filosofi vs. Bombardier og Embraer - AW&ST

Boeing And Embraer Plan Holistic Partnership Jens Flottau and Guy Norris  The Farnborough Airshow debut of the Airbus A220-300, the rebranded Bombardier C Series, underlined the emergence of the new world order in airliner development. But it was the first details of the proposed Boeing-Embraer pairing, the other half of the new duopoly, that revealed the vast differences between the two approaches.    While the Airbus takeover of the Bombardier C Series is targeted at expanding the European manufacturer’s coverage of the single-aisle market, Boeing and Embraer insist their relationship is deeper, wider-ranging and altogether more holistic than that project. Talking about the proposed joint venture in detail for the first time, executives from both companies say the initiative forms a launchpad for everything from shared engineering services to new aircraft models and could be approved much sooner than the late 2019 date suggested in some earlier reports.

Discussing the plan at a packed press conference during the air show, Embraer President and CEO Paulo Cesar de Souza e Silva said, “We believe this transaction is very strategic. It is a partnership that will develop new products, that will provide Embraer with access to more markets.” The joint venture, which would give Boeing an 80% share valued at $3.8 billion, will give Embraer the chance to be “a bigger player” and “means more aircraft will be manufactured, more will be delivered, more jobs in Brazil, more technology and access to more capital,” he added. ·         Happy Families ·         Boeing-Embraer joint venture expected to be formalized “much sooner” than late 2019 ·         Large early orders for Airbus A220 indicate program turnaround ·         Strong Embraer E2 sales momentum not visible yet The two companies have not yet announced the leadership team of the new joint venture, which will require regulatory approvals in about 10 countries. Embraer says the process of obtaining regulatory clearance has begun. “That’s why this is a win-win,” says Silva. “It’s not just about an aircraft program, like we saw with the other manufacturers doing this,” he noted, referring to the rebranding of the C Series. “Here is a transaction that is much more strategic; it is about the whole end-to-end capability in the aircraft industry. We are a good fit for Boeing as it looks to be more vertical; we have good capability in landing gears and interiors.” In parallel with the commercial partnership, Boeing and Embraer are also seeking to expand their existing sales and marketing agreement on the KC-390 military airlifter under a wider joint venture. Although the deeper partnership is primarily targeted at further joint marketing, it also embraces the longer-term potential for upgrades and new derivatives, suggests Boeing Chief Financial Officer Greg Smith. “We will collaborate on next generations and [on] modifications that may be required to open up the marketplace of the KC-390,” he says. The closing of the Embraer deal could come much sooner than officially indicated. John Slattery, president and CEO of Embraer Commercial Aviation, tells Aviation Week, “I would like for it to take not any longer than the Airbus/Bombardier transaction.” He stresses, however, that he is “not giving guidance.”

Embraer’s 190-E2 is still on the hunt for larger orders. Credit: Paul Jackson

Airbus announced the acquisition of a majority stake in the C Series program in October 2017 and closed the deal by July 1, just eight months later. However, when Boeing and Embraer said in the official announcement on July 5 that closing the deal could take up to 18 months, it sent ripples of concern through the investment community, which feared that major parts of the transaction remain uncertain. As part of the larger Airbus family, the A220 has already enjoyed significant new success, the larger -300 variant having been selected for a new startup airline formed by David Neeleman, the Brazilian-American entrepreneur who founded Morris Air, WestJet, JetBlue Airways and Azul Brazilian Airlines. The as-yet-unnamed airline, backed by a group of investors led by Neeleman, announced a memorandum of understanding for 60 A220-300s in Farnborough. Deliveries of the aircraft will begin in 2021, which is also the year the carrier will start flying. “The A220 has more range [than the Embraer E195-E2],” Neeleman tells Aviation Week. The aircraft gives the carrier “more flexibility” and could be used on transatlantic missions as well as routes from the U.S. deep into Brazil, he says.

The former CS300 made its show debut as the newly rebranded A220. Credit: Mike Vines/SHOWNEWS

“This U.S. airline startup’s decision for the A220 as the platform on which to launch their new business model is a testament to the passenger appeal and operating economics of this outstanding aircraft,” says Airbus head of sales Eric Schulz. “This commitment confirms the important role the A220 aircraft now occupies in our Airbus single-aisle portfolio.” Slattery, meanwhile, sees strong momentum for both the E1 and E2 aircraft families following the signing of commitments for up to 300 additional aircraft at the air show. The largest commitment is a firm order for 100 E175-E1s plus 100 additional purchase rights placed by U.S. regional carrier Republic Airways. Along with 25 aircraft ordered by United Airlines for its regional operations, the deal ensures Embraer has a significant backlog of E1s as E2 production is ramped up. All the United aircraft are to be delivered in 2019, according to Embraer Chief Commercial Officer Arjan Meijer. Republic has conversion rights from the E1 to the E2 version of the E175, in case scope-clause agreements at major U.S. airlines for which it operates change. Several airlines also placed significant orders for the E2. Brazil’s Azul signed a letter of intent for 21 aircraft; it already has a firm order for 30 E195-E2s. Azul operates 63 E-jets, some of which will be replaced by the E2s over the next five years, the carrier says.