Embraer's decision to make a concerted effort to enter the business aircraft market with corporate variants of its EMB-135 and EMB-170 regional airliners came as no surprise. It is not enough for the company to build a good aircraft, however. The manufacturer will need to accommodate a type of customer with different demands from the regional market with which Embraer is at home.
The Brazilian company is joining the growing line of regional and large aircraft manufacturers vying for a slice of the larger aircraft end of the lucrative business aircraft market which, if predictions are borne out, will account for 170 corporate configured airliners valued at $7.6 billion by 2010.
Cross fertilisation between business and commercial aircraft within a manufacturer is nothing new. The mainstream airliner builders have always sold a small number of airliners to corporate customers, while in the mid-1980s Bombardier turned to the Challenger business jet which formed the basis for the Canadair Regional Jet . The subsequent feedback of technology from the heavily utilised regional aircraft to the business aircraft market has helped to produce the extremely reliable machines which the corporate customer now expects.
Market enthusiasm for this class of aircraft has seen Boeing's 737-700 corporate variant, the BBJ, clock up nearly 90 sales, while Airbus Industrie has secured a dozen orders for its A319 Corporate Jetliner. The two newcomers, Fairchild Aerospace and BAE Systems Avro, are reporting a high level of interest their jets.
Perhaps the key consideration for Embraer - new to the corporate market - is how it will support its products.
The demands of the corporate jet customer are more sensitive than those of a regional airline. If an individual or a corporation is considering spending several million dollars on an aircraft they will expect impeccable customer support. To be taken seriously, Embraer will have to establish a completions capability and worldwide support network, both of which are costly and time consuming.
Embraer should look for a partner with the appropriate infrastructure in place. Boeing recently set up a deal with 737-700 operator Delta Airlines to provide 24h support for its BBJ customers. Airbus has linked with United to offer similar back-up for the A319CJ. Embraer should exploit the links that is negotiating with Dassault on a proposed light business jet. The French group is established in the business aircraft market with Falcon jets and has a plethora of approved support centres across the globe, a capability Embraer may find essential.
Source: Flight International
