E-190 production delays will not impact 2011 delivery forecast: Embraer

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Embraer is incurring delays to its E-190 production schedule due to a supply chain constraint with a Japanese provider of engine electronics for the twinjet's General Electric CF34 powerplants.

The recent earthquake and tsunami in Japan has led to complications for a number of manufacturers. The issue impacting Embraer was highlighted yesterday by Republic Airways Holdings CEO Bryan Bedford, who noted the delay "in the E-190 production line".

Last week MarketWatch reported that three E-190s on order by JetBlue Airways would be delayed because the engine parts were not available.

Confirming the problem an Embraer spokeswoman says: "We expect slight delays but we intend to maintain the number of deliveries forecast for this year."

That guidance calls for Embraer to deliver in 2011 a total 102 commercial jets, in addition to 18 "Legacies and Lineages and about 100 Phenoms", Embraer CEO Frederico Curado said yesterday during the firm's earnings conference call.

Embraer's first quarter 2011 commercial deliveries were relatively flat, with the Brazilian airframer delivering 20 jets to the market versus 21 in the year-earlier quarter. The majority of the deliveries were E-190s with customers accepting 11 of the type.

But Embraer is satisfied with the results. The aiframer's executive vice president, airline market Paulo Cesar de Souza e Silva says the company is pleased with "the renewed market confidence" in its E-Jets family.