Embraer S.A.(ERJ) has reached its 1000 order milestone for its E-Jets family of aircrafts. This remarkable achievement, which was announced at the 49th Paris Air Show conference in France, took a mere seven years after their first delivery in the E-Jet aircraft segment. The company concluded its recent sales and won orders for 39 Embraer 190 regional jets worth $1.7 billion at the Paris Air Show, which helped them to obtain orders over the 1,000 mark.
The versatile E-Jets family of aircraft currently operates four models (E170, E175, E190 and E195) with seating capacities of 70-120. Of these, E190 is being routinely scheduled on long routes over land and water, some exceeding flight times over 5 hours. Moreover, both E170 and E190 aircraft have been regularly flying to and fro over the challenging airfields of London City Airport (LCY).
Since 1999, E-Jets have redefined the traditional regional aircraft and positioned itself as the brand new family of aircraft with wider range of applications such as satellite radio, live television entertainment systems and premium class cabins of larger airplanes. The state-of-the-art technology of E-Jets is currently facilitating the regional airlines and low-cost carriers to optimize their operations and develop new markets, substituting the old jets. Moreover, E-Jets have a huge demand among the low-cost carriers for their short turnaround time on the ground, which optimizes both their cost and utility.
Embraer has built a global services across Europe & the CIS (Commonwealth of Independent States), Latin America, Asia Pacific & China, Middle East & Africa and North America. Their support network currently includes five parts warehouses, 27 full flight simulators, eight cabin trainers, and 15 MRO centers. ERJ eventually eyes toward stronger future demand for the jets and predicts a delivery of 7,225 regional jets worth $320 billion over the next 20 years.
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 operates through five segments — Commercial Aviation, Defense and Security Business, Executive Aviation, Aviation Services and Others. 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 currently maintain an Outperform recommendation on the stock. ERJ has a Zacks # 1 Rank, which translates into a short-term Strong Buy rating (1-3 months).
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