EMB-170 Program Update - Likely New MDA Aircraft

[Art at ISP]

[blockquote]
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On 9/18/2002 12:23:16 AM chipmunn wrote:

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

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[/blockquote]

Chip,

Would first class seating be removed on all aircraft? Your mention of high density seating would further drive away the best customers, who, regardless of what fares they pay (hear that Ben?), put their rears in US seats over 100 times a year. Is the extra density worth the potential lost revenue?

I understand the economics of the situation, but are they ready for another backlash? Also do you have any idea how many 1st seats would be removed from which type aircraft?

As always thanks for your insights--I for one am grateful to you for your efforts here.

 

[Hope777]

I have talked about this in the past. There is no need for 24-B757 or 26-A321 First Class seats. DL only has 18 on B767's. I think a F/C section with about 16 to 18 seats would be acceptable.

 

[W:EXCH:INVOL]

Is this really the time to buy a brand-new (unproven) aircraft type?

INVOL

 

[Chock]

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, If Dave told you that Santa Claus would be paying you a visit come the next 4th of July, would you be standing under the fireplace at midnight with your milk and cookies? Meanwhile, I'll save this gem and get back to you in seven year's.

 

[PHL]

ChipMunn said: 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.

PHL replies: Is Dave's evaluation of adding the 767-300ER contingent on the rumored swap deal with Asiana for the A330s? How is US' relationship with Boeing now?

 

[ITRADE]

Here is the ERJ-170 seat map:

 

[DorkDriver]

Hey Chip. I thought that Group had rejected PDT and AGH's TA? When did things change?

 

[ITRADE]

[blockquote]
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On 9/18/2002 9:59:46 AM PHL wrote:

ChipMunn said: "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."

PHL replies: Is Dave's evaluation of adding the 767-300ER contingent on the rumored swap deal with Asiana for the A330s? How is US' relationship with Boeing now?
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[/blockquote]

This is really interesting. I love the A330, but realize that from an operational standpoint, the 767 is more effecient since you have one set of crew qualifications (and with the 757), and the capacity is probably more US's size. Plus, IIRC, the -300 was designed to hold extra cargo, so concerns of less cargo capacity may be alleviated.

 

[chipmunn]

PHL & Dork:

PHL said: Is Dave's evaluation of adding the 767-300ER contingent on the rumored swap deal with Asiana for the A330s?

Chip comments: There are a number of options including Asiana, the new BA aircraft parked in the dessert, the aircraft being returned by AA, as well as a fourth option, which was not discussed, but I know exists.

Dork said: I thought that Group had rejected PDT and AGH's TA? When did things change?

Chip answers: Dork, I’m not sure they have and I do not know the current status of those discussions. Maybe it would have been better if I said participating wholly owned airlines.

Chip

 

[ITRADE]

Chip, I noticed that under the firm orders for the -170, GECAS has about 50 on order. Are these already leased out to other airlines, or did GECAS do a speculative order?

 

[ITRADE]

[blockquote]
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On 9/18/2002 1122 AM chipmunn wrote:

PHL & Dork:

PHL said: Is Dave's evaluation of adding the 767-300ER contingent on the rumored swap deal with Asiana for the A330s?

Chip comments: There are a number of options including Asiana, the new BA aircraft parked in the dessert, the aircraft being returned by AA, as well as a fourth option, which was not discussed, but I know exists.

Chip
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[/blockquote]

I don't think you'll see the AA 767s coming over. Their 762s (ex TW) are old models and their 763s, while newer in age, have different engines than those that US flies (763s have PW engines, US has CF6-80 engines).

 

[tadjr]

Would first class seating be removed on all aircraft? Your mention of high density seating would further drive away the best customers, who, regardless of what fares they pay (hear that Ben?), put their rears in US seats over 100 times a year. Is the extra density worth the potential lost revenue?

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[/blockquote]

All I've heard about are the 757s for now. The plan was to take out some of the FC seats and use them to reintroduce LGA/BOS- Florida flights where the FC demand for 24 seats is not there, but the Y demand for 170 or so is.

 

[chipmunn]

[BR][FONT size=2][FONT face=Arial]Dave Siegel flew to Embraer headquarters in South America on a red-eye last night, presumably to sign a new RJ deal. With the March 2003 MidAtlantic start-up and the new EMB-170 available in the Spring of 2003, this aircraft is exepcted to be delivered to MDA. The aircraft will have six First Class seats & will set a new standard for RJs, which will give US Airways a major competitive advantage with two by two seating, large overhead compartments, and an RJ you can stand up in. Reports indicate with all labor accords in place and the debtor-in-possession financing agreement set to be approved next Thursday, September 26, US Airways will make a major RJ announcement shortly.[BR][BR]I believe MDA pilot training will begin in January 2003. Here is an interesting photo review of the EMB-170. [/FONT][BR][BR][/FONT][A href=http://www.embraer.com/english/content/aeronaves/aviacao_comercial/erj170/galeria/][FONT color=#0000ff][FONT face=Arial size=2]http://www.embraer.com/english/content/aeronaves/aviacao_comercial/erj170/galeria/[/FONT][/FONT][/A][BR][A href=http://playlist.broadcast.com/makestream.asp?ID=2729689][FONT color=#0000ff][FONT face=Arial size=2]http://playlist.broadcast.com/makestream.asp?ID=2729689[/FONT][/FONT][/A][BR][BR][FONT face=Times New Roman size=3]Chip[/FONT]

 

[chipmunn]

Hi Art:

Art asked: Would first class seating be removed on all aircraft? Your mention of high density seating would further drive away the best customers, who, regardless of what fares they pay (hear that Ben?), put their rears in US seats over 100 times a year. Is the extra density worth the potential lost revenue? I understand the economics of the situation, but are they ready for another backlash? Also do you have any idea how many 1st seats would be removed from which type aircraft?

Chip answers: The company is currently finalizing a study to add more seats on the B-757, which could be expanded to the A-321, by reducing not eliminating, First Class seats. I have not heard of the final decision, but First Class will not be eliminated. So far, only the B-757 has been mentioned.

Chip

 

[chipmunn]

Embraer Investor Presentation - Morgan Stanley Aerospace & Defense Conference - Thursday, September 19, 2002, at 11:20 a.m. ET

SAO JOSE DOS CAMPOS, Brazil--(BUSINESS WIRE)--Sept. 18, 2002--Embraer one of the leading commercial aircraft manufacturers, will hold an Investor Presentation at the Morgan Stanley Aerospace & Defense Conference on Thursday, September 19, 2002, at 11:20 Eastern Time (12:20 Brasilia Time).

This investor presentation and the following Q&A session are being simultaneously webcast and can be accessed at Embraer's web site at www.embraer.com.br.

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 32 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft aimed for the world airline, corporate and defense markets.