EMB-170 Program Update - Likely New MDA Aircraft

[chipmunn]

RJ Update:

Today Andrew Nocella, vice president of planning and scheduling said, Assuming the company emerges from Chapter 11 reorganization in the First Quarter of 2003, as it anticipates, more RJs will begin to appear early next year -- first among the contract carriers, then with MidAtlantic Airways and the wholly owned airlines.

Nocella noted, The deployment will accelerate rapidly in the fall of 2003 with an expected total of about 300 RJs in the system over the next three to four years. As the RJs come in, they will give us revenue pull that we don't have right now, he said.

Chip

 

[gilbertguy]

Hope this new EMB 170/175 does not have the teething problems that were experienced by PSA in those BAE 146 days!! [img src='http://www.usaviation.com/idealbb/images/smilies/6.gif']
Grounded aircraft do not make $$$.........

 

[chipmunn]

EMBRAER 170 Development Program Update
Certification Date Set for Second Quarter of 2003, HIRF Tests Concluded, Static Tests Under Way, Major Demo Tour to Start Soon
SAO JOSE DOS CAMPOS, Brazil, Sept. 17 /PRNewswire-FirstCall/ -- Following a careful reassessment of current and remaining development and certification related activities for the EMBRAER 170 program, along with risk sharing partners and authorities, Embraer - Empresa Brasileira de Aeronautica S.A. has defined the second quarter of 2003 as the new certification target date for the EMBRAER 170.
This decision results from delays experienced in aircraft systems and software development, which have adversely affected the normal flow of flight tests and the release of certification-related documentation.
The number of EMBRAER 170 aircraft to be delivered in 2003 will not be affected, therefore the total number of scheduled deliveries in 2003, for all Embraer models, will remain unchanged at 145. Development schedules of the other EMBRAER 170/190 family aircraft -- the EMBRAER 175, EMBRAER 190 and EMBRAER 195 -- remain as originally planned with certifications foreseen for the second quarter of 2004, fourth quarter of 2005 and fourth quarter of 2004, respectively.
Meanwhile, the EMBRAER 170 development program progresses at an intense pace. Other relevant facts and milestones are summarized in the following paragraphs.
High Intensity Radiated Fields (HIRF) tests carried out with production standard aircraft S/N 0006, in the presence of CTA (Centro Tecnico Aeroespacial - Brazilian Aerospace Technical Center) and JAA (European Joint Aviation Authorities) inspectors were successfully accomplished last August 20, three days ahead of schedule.
HIRF tests are designed to demonstrate the resistance of the aircraft electric and electronic systems to high intensity external electromagnetic fields such as the ones generated by radio and TV broadcasting antennas.
Lightning tests on main aircraft structures such as the wing, control surfaces and the radome have been successfully completed, with indirect lightning effects tests progressing toward a scheduled completion date in October.
The Full Scale Static Structure Test started in mid-August, with fuselage pressurization and wing-up bending limit load tests already performed successfully, and is on target for completion early next year.
Flooded runway ground tests took place during the third week of August at the Gaviao Peixoto plant. During one of the test runs, aircraft S/N 0003 left the runway and experienced minor damage. As a consequence, the main landing gear had to be replaced and the nacelle is under repair. While the aircraft is expected to resume operations soon, this event had no impact in the decision to reschedule the aircraft certification.
Finally, the EMBRAER 170 is scheduled to perform another important demonstration tour starting in mid September. No less than 20 operators from 15 countries from the U.S., Europe and Middle East are expected to see Embraer''s first member of a new generation of 70- to 110-seat airliners that will introduce a new industry standard for cabin comfort and operating economics for aircraft in its class.
The 100-hour, 72-cycle and 27,000-nm demo tour will be a source of aircraft function and reliability data, therefore playing an important role in the certification and maturity process.
Since its launch at the 1999 Paris Air Show, Embraer has a total of 112 firm orders and 202 options for the EMBRAER 170/190 family. The first production unit of the EMBRAER 170 is to be delivered to launch customer SWISS, of Switzerland, following certification in the second quarter of 2003.
Embraer is one of the world''s leading aerospace companies and is headquartered in Sao Jose dos Campos, state of Sao Paulo, with offices and customer service bases in Australia, China, France, Singapore and the United States, and a total workforce of 11,876 people, as of June 30, 2002. Embraer (Empresa Brasileira de Aeronautica S.A.) has been Brazil''s largest exporter since 1999. As of June 30, 2002, its backlog for firm orders was valued at to US$ 10.1 billion and US$ 13.7 billion in options.
Embraer has 33 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft aimed for the world airline, corporate and defense markets.
This press release includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forward- looking statements largely on our current expectations and projections about future events and financial trends affecting our business. These forward- looking statements are subject to risks, uncertainties and assumptions, including, among other things: general economic, political and business conditions, both in Brazil and in our markets; anticipated trends in our industry; our expenditure plans; our ability to develop and deliver our products on a timely basis; and existing and future governmental regulation.
The words believes, may, will, estimates, continues, anticipates, intends, expects and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.

 

[ITRADE]

[P]Just as long as I see at least 9 F class seats.[/P]
[P]Here's a question. Why couldn't US acquire F-28s and fly them under MDA colors? There must be a lot of them sitting around.[/P]

 

[chipmunn]

Itrade:

The EMB-170 will have six first class seats and the EMB-175 will have eight first class seats. I understand US has now obtained RJ delivery positions.

Chip

 

[DorkDriver]

Hey Chip. Any RJ delivery spots for PSA, or is the only WO that played the game going to get the shaft anyway?

 

[ITRADE]

Here ya go, folks:

 

[geo1004]

Hey ITRADE, where is Envoy Class for the Trans-Atlantic RJ's?

 

[Lynx_plyr02]

Oh thats nice .It will be even nicer when the ramp is fixing them,then they'll kinda look like lawn darts.

 

[chipmunn]

Hi Dorkdriver:

Dorkdriver said: Hey Chip. Any RJ delivery spots for PSA, or is the only WO that played the game going to get the shaft anyway?

Chip answers: Dork, all I know is that US Airways Group has delivery positions; however, the company has not leaked or made it known who will get what aircraft first. However, without a J4J agreement no carrier will get expanded US code share flying.

In my opinion the 71st authorized aircraft will be flown by Midway, but after that I have not heard of a specific delivery sequence, yet.

Chip

 

[FrankWasRight]

Chip sez:however, the company has not leaked or made it known who will get what aircraft first. However, without a J4J agreement no carrier will get expanded US code share flying.

Need to adjust the gain on yer radar,Chip.To agree to J4J is to agree to lower payscales for flying (for me,anyway) larger aircraft.It works like this:

Company A signs on to J4J and orders up some more RJs.

After a pause to set the hook,Airways tells Company A that it needs concessions on it's codeshare contract.(This is not idle speculation-our company president in a letter to employees said exactly that has already happened.)


Company A wonders where the money will come from,since their margin is low to begin with and the other codeshare airlines cut their bids to the bone to get the business.Now,they have a bunch of shiny new jets to pay for,so where to cut costs ? Back to the well to ask pilots,rampers,mechanics,etc. to give 'til it hurts.What will an outfit like Mesa do ? You will be over the proverbial barrel. The biggest chunk of their business is U.I gotta hand it to Dave-it was a masterstroke-if you were a CEO and had the chance to turn over a huge portion of the flying to guys making substantially less (Like at Mid Atlantic),wouldn't you ? With the pilots agreeing to it,no less ! Oh,and hey,with this United deal,Airways will no longer need those old 757/767s to go across the pond-you can just feed UAL's 777s with Mid Atlantic.

 

[DorkDriver]

Thanks Chip. I love playing the hurry up and wait game.

 

[FrankWasRight]

Chip stated:US Airways ALPA was the last major airline to provide meaningful RJ expansion, but these small jets are an economic reality. The new large RJ classification, the EMB-170 and EMB-175, with a First Class configuration, will give US a competitive advantage.

No doubt,and maybe even a marketing edge,as they will likely be one of the first US operators of the type,and I predict pax acceptance will be high.The 170 will be far more comfortable than the EMB 145 and the economics are favorable.

J4J is to provide virtually all US work groups the opportunity for interim employment during a down economic environment until mainline recall. Nobody likes this issue, but J4J is part of the new pilot CBA and at this point, MDA, Midway, and the three other wholly owned airlines will be the only company's to enjoy the RJ expansion.

Well,that depends on what you mean by enjoy-the junior pilots at PDT,PSA and ALG won't enjoy being unemployed.I know the jets are replacement aircraft,and PDT is shedding some Dashes (and crews) in December.This is where we diverge-Mid Atlantic is no interim quick-fix for an ailing Airways.I doubt the mainline will ever be back to it's former size,but I hope I'm wrong.FWIW,I was recalled by my little airline and have left PDT.Since my time back at work,we've been flying good loads (even oversells-midweek !).

 

[chipmunn]

Frank:

Franks said: I gotta hand it to Dave-it was a masterstroke-if you were a CEO and had the chance to turn over a huge portion of the flying to guys making substantially less (Like at Mid Atlantic),wouldn't you?

Chip answers: Frank, US Airways ALPA was the last major airline to provide meaningful RJ expansion, but these small jets are an economic reality. The new large RJ classification, the EMB-170 and EMB-175, with a First Class configuration, will give US a competitive advantage. J4J is to provide virtually all US work groups the opportunity for interim employment during a down economic environment until mainline recall. Nobody likes this issue, but J4J is part of the new pilot CBA and at this point, MDA, Midway, and the three other wholly owned airlines will be the only company's to enjoy the RJ expansion.

This expansion will provide approximately 230 RJs for J4J, with up to 66 flown at Midway and 167 to 215 RJs added to MDA, PSA, ALG, & PDT.

Frank said: Oh,and hey,with this United deal,Airways will no longer need those old 757/767s to go across the pond-you can just feed UAL's 777s with Mid Atlantic.

Chip comments: Frank, the UA code share provides motivation for US to expand long-haul and the corporate business plan is to add more Caribbean, Central American, Mexican, and Transcontinental flying, which require larger aircraft. The only way US gets any code share revenue is when a passenger is flown on a US aircraft; therefore, reducing long haul flying actually reduces the US code share revenue.

US will maintain service to all of its European cities, although the PIT-CDG and second PHL-LGW flight will be discontinued for a seasonal adjustment, with plans to reinstate the service in the Spring.

Reports indicate the company is going to put larger aircraft with higher seating capacity in low-yield, long-haul markets such as Florida and Las Vegas like the B-757 and A-321. These aircraft have lower unit costs and provide a better economic product. The company appears close to announcing a program to reduce the number of First Class seats to provide a high-density seating configuration to beeter compete with low cost carriers.

Also noteworthy, the B767-200 has reasonable economics and Dave told me he intends to keep these aircraft and is evaluating adding B767-300ERs to the fleet.

Chip

 

[chipmunn]

Frank:

Frank said: I doubt the mainline will ever be back to it's former size, but I hope I'm wrong.

Chip answers: Frank, Dave told employees at a road show that in 7-years he envisioned a 350 to 400 mainline fleet with 400 to 500 RJs, which I believe was submitted to the ATSB.

Chip