India is first in Asia to host Embraer's small jet

The Brazilian aircraft manufacturer, Embraer, which is now the world’s fourth largest aircraft manufacturer, is promoting its small aircraft, the Phenom 100, in India. The aircraft that seats four persons, costs $4 million. and is the smallest aircraft from the Embraer stables.

The aircraft is in direct competition with entry-level aircraft of Cessna, and the Mustang. It has 30 firm orders from India for the aircraft which are to be delivered over two to three years. With the orders being estimated to be valued around $150 million, the company has brought the aircraft to India to show it to those who may want to buy it. The company intends to visit seven cities across the country before taking the aircraft to Singapore and Australia. Till now, the Phenom 100 has received 750 firm orders from across the world.

“Embraer has invested $250 million on the project and we hope to recover it over a period of 15 years,” said Jose Eduardo Costas, V-P (marketing & sales), executive jets, Embraer Asia Pacific. By 2015, Embraer wants to be a major business jet player. But, over the next two years, the company expects a reduction of deliveries.

As a result of the cancellations during the slowdown when general aviation “fell off the cliff”, Embraer had to cut costs, and in the process has had to cut staff strength.

In 2005, Embraer had forecast the business jet market to be of the order of $190 billion by 2019, which is for 10,000 business jets. But, before the slowdown hit, the estimates had been that the market would be for 14,000 aircraft.

In 2005, Embraer had invested $100 million to deploy its service network across the world. It has, hence, set up 40 service centres for its aircraft across the world. In India, it has appointed Indamer Company Pvt Ltd as an authorised service centre. It has invested in training of engineers.

Embraer has several Phenom family customers in India. Among them are Aviators India Pvt Ltd, the first client in the region, with two Phenom 100, and holds the largest order at 20. But, Aviators has had to postpone the purchase of its first Phenom 100 by an year. Instead of taking delivery of its aircraft this November, it has decided to postpone it by another year, said Arun Sharma, MD, Aviators (India) Pvt Ltd that operates an air taxi service. The company also provides charter services, provide support for ferry and import of aircraft, secure import clearances for aircraft among other services.

According to Sharma, at least half the air taxi and charter operators in the country have fallen victim to the slowdown over the past year.