Embraer S.A (ERJ) recently rolled out its novel executive jet, the midsize Legacy 500, from S?o Jos? dos Campos headquarter in Brazil. The aircraft’s first flight is scheduled for the third quarter of 2012. The rollout calls for a prior phase of evaluation, development and ground tests before launch.
The aircraft is powered by two Honeywell HTF 7500E turbofan engines, each one producing 6,540 pounds of thrust at takeoff; allowing the aircraft to fly at a high-speed cruise of Mach 0.82, at a range of 5,600 kilometers (3,000 nautical miles).
The Legacy 500 can accommodate up to 12 passengers in a stand-up cabin with 6-foot ceiling and a flat floor. Cabin design and amenities include four fully flat seating pairs, a low 6,000-foot cabin altitude, Honeywell’s Ovation(R) Select Cabin Management System, along with internal and external baggage compartments. Premium seats are available with leg rest, headrest with flexible wings, electrically actuated lumbar support, and massage and heating systems, which are unique to its category.
The aircraft will be certified by ANAC (Brazil), FAA (USA), EASA (Europe), and other aviation authorities in key markets throughout the world.
Apart from this major roll out, Embraer has recently reported to the first Lineage 1000 ultra-large executive jet to an un-named Chinese customer. The Lineage 1000 is equipped to fly within a range of 8,334 kilometers (4,500 nautical miles), having the capacity to fly nonstop from Beijing (China) to Dubai (United Arab Emirates) or from Hong Kong (China) to Sydney (Australia) with four passengers and NBAA IFR fuel reserves. The Lineage has advanced avionics suite and the latest electronic fly-by-wire flight control system, which provides pilots with a highly intuitive and professional cockpit for safe and smooth trips.
Two EMBRAER 190 (E190) jets have also been delivered to China’s Hebei Airlines Co., Ltd. Based in Shijiazhuang, the capital city of Hebei Province, the E190s are anticipated to fly from Shijiazhuang to other provincial capitals, with more routes and frequencies. The sale of these two E190s preceded the purchase of another eight jets, subject to the Chinese government approval.
Embraer also delivered the first entry level Phenom 100 jet produced in its new US assembly plant to AirShare, Embraer’s long-time customer,during a ceremony held in Melbourne, Florida, this December.
Embraer S.A designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets. The company’s product portfolio supporting strong customer orders and diversified global footprint, gives a tough competition to its peers, such as Boeing Co. (BA), Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), etc.
We believe that the continued list of Embraer’s worldwide customer order servicing and on-time deliveries of corporate, defense jets and executive jet-support structures will not only foster stronger global footprints but will also generate healthy revenue in the near future.
We currently maintain a long-term Neutral recommendation on the stock. Embraer has a Zacks # 3 Rank, which translates into a short-term Hold rating (1-3 months).
To read this article on Zacks.com click here.
Zacks Investment Research
