2. Regional Airline Market
North Europe
America 26%
55%
China
Africa & 2%
Middle
Latin East
America & 3% Asia/
Caribbean Pacific
6% 8%
Source: OAG (scheduled airline services - aircraft up to 120 seats – ASK capacity share)
10. Commercial Airline Market - Europe
15% 13%
10% 9% 9%
RPK Growth - Yr/Yr % Change
7% 7% 7% 7%
6% 6% 6% 6%
5% 5% 4% 4% 4%
5%
1% 1%
0%
jan/01 Feb Mar Apr May jun/01 Jul Aug Sep Oct Nov Dec/01
-5% -3% -3%
-7%
-10%
Intra-European AEA Regional ERAA
-15% -13% -14%
-15%
-20%
Source: ERAA, AEA
11. Industry in Transition after Sep 11
Capacity Management
QParked Aircraft
QDelivery schedules being re-negotiated,
except for regional jets (small unit of capacity)
QRightsizing capacity vs. demand: regional
jets being used in the USA to maintain
presence in markets with decreased
demand
QCash Management: focus on return to
profitability in a low yield environment
12. Industry in Transition after Sep 11
Rightsizing capacity vs. demand: Routes transfered to RJs
Jet Replacement
Turboprop Replacement
Source: Back OAG (American, Continental, Delta,
United, and US Airways)
13. Industry in Transition after Sep 11
Rightsizing capacity vs. demand: Routes transfered to RJs
Jet Replacement
Turboprop Replacement
Source: Back OAG Air France, Alitalia and British Airways
14. Regional Jets – Airlines Perspective
“Continental is … convinced of the need to continue to take all the ERJs
“Continental is … convinced of the need to continue to take all the ERJs
which are proving very effective in weak markets. The focus remains on
which are proving very effective in weak markets. The focus remains on
getting unprofitable flying out of mainline and passed down to Continental
getting unprofitable flying out of mainline and passed down to Continental
Ted North (Director, Fleet Planning,
Express.”
Express.”
Continental Airlines, October 10, 2001)
“Because our RJs are more popular with customers than our turboprops, we
“Because our RJs are more popular with customers than our turboprops, we
will be flying the RJs as intensively as we can. We are adding RJ trips in
will be flying the RJs as intensively as we can. We are adding RJ trips in
some new markets and converting some turboprop markets to RJ
some new markets and converting some turboprop markets to RJ
Peter Bowler (President
Peter Bowler (President
markets.”
markets.”
American Eagle, October 04, 2001)
American Eagle, October 04, 2001)
“Regional Jets made sense before Sept. 11 and we think they make even more
“Regional Jets made sense before Sept. 11 and we think they make even more
sense afterwards.”
sense afterwards.” Warren Wilkiinson (Marketing VP of Indianapolis Base
Warren Wilkiinson (Marketing VP of Indianapolis Base
Chautauqua Airlines October 09, 2001)
Chautauqua Airlines October 09, 2001)
15. Sustaining Regional Growth
1. Turboprop Substitution
• productivity improvements
• passenger jet preference
2. Frequency, Frequency . . .
3. Optimization of Old and
Inefficient Narrowbody
Services
• adjustment aircraft size X load
factor
• long & thin routes
• new market opportunities
• profit potential
• larger, new generation RJ’s
18. Step 3: Enhancement of RJ Service
Continental Express Network
2001 Houston-Milwaukee
Cleveland
(1585 km, 02:55)
Mont Rose Newark
(1490 km, 02:20)
Houston
Regional Jets 650 nm
Turboprop 205 nm
Ixtapa (1510 km, 02:20
System Avg. 400 nm
19. Crossair Network 2001
Stockholm
(1500 km, 02:40)
Turboprop
ERJ
Basel
Zurich
Sevilla
(1570 km,
02:30)
Source: OAG BACK
20. LOT Polish Airlines Network 2001
Oslo
(1070 km, 02:00) St. Petersburg
(1030 km, 01:55)
Turboprop
ERJ
Warsaw
Bucharest
(930 km, 01:50)
Nice
(1390 km, 02:40)
Source: OAG BACK
25. Regional Jet Presence - USA
Jan 2002
Jan 1995
Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
26. Regional Jet Presence - Europe
Jan 2002
Jan 1995
Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
27. Frequency:
Hourly Frequency Concept - USA
From Boston, Massachusetts, USA Airlines: UA
To Chicago, Illinois, USA
Date/Time
2/06/2002 – 06:00a
Days Flight Depart Arrive Eqp Stop Duration
xSa UA 745 6:00a BOS 7:36a ORD 319 0 02:36
xSu UA 1053 6:45a BOS 10:07a ORD 757 0 02:40
xSaSu UA 1439 7:45a BOS 11:12a ORD 320 0 02:41
xSu UA 881 8:45a BOS 11:59a ORD 319 0 02:39
xSaSu UA 509 9:45a BOS 1:13p ORD 733 0 02:43
xSa UA 515 11:45a BOS 2:05p ORD 735 0 02:37
xSa UA 519 1:45p BOS 3:07p ORD 733 0 02:39
xSu UA 525 2:45p BOS 4:07p ORD 735 0 02:39
xSu UA 1551 3:45p BOS 5:10p ORD 733 0 02:43
Daily UA 473 4:45p BOS 7:14p ORD 757 0 02:39
xSa UA 527 5:45p BOS 8:18p ORD 320 0 02:46
Daily UA 529 7:00p BOS 9:05p ORD 735 0 02:43
28. Hourly on Secondary Routes
From Tulsa, Oklahoma, USA Airlines: AA
To DallasFort Worth, Texas, USA
Date/Time
2/06/2002 – 06:00a
Days Flight Depart Arrive Eqp Stop Duration
Daily AA 535 7:05a TUL 8:18a DFW 100 0 01:13
Daily AA 1215 8:35a TUL 9:52a DFW 757 0 01:17
xSaSu AA*3654 9:10a TUL 10:25a DFW ERJ 0 01:15
xSu AA 2033 10:11a TUL 11:26a DFW M80 0 01:15
xSu AA*3726 11:00a TUL 12:10p DFW ERJ 0 01:10
xSa AA*3828 1:30p TUL 2:45p DFW ERJ 0 01:15
xSa AA*3660 2:30p TUL 3:40p DFW ERJ 0 01:10
Daily AA 1821 4:32p TUL 5:45p DFW M80 0 01:13
xSa AA*3534 5:45p TUL 6:55p DFW ERJ 0 01:10
xSa AA*3736 6:20p TUL 7:35p DFW ERJ 0 01:15
29. Frequency:
RJ Frequency in Europe
From Manchester, UK Airlines: BD
To Edinburgh, UK
Date/Time
2/06/2002 – 06:00a
Days Flight Depart Arrive Eqp Stop Duration
xSaSu BD 381 8:20a MAN 9:15a EDI ER4 0 00:55
xSaSu BD 383 11:55a MAN 12:45p EDI ER4 0 00:50
xSaSu BD 385 2:40a MAN 3:30p EDI ER4 0 00:50
xSaSu BD 387 5:30p MAN 6:25p EDI ER4 0 00:55
xSa BD 389 8:20p MAN 9:10p EDI ER4 0 00:50
35. Market Opportunities - USA
Q Ageing 100-seat fleet to be replaced
Fleet in Service (91-120 seat segment - Jan/2002)
180 250 aircraft with
160 more than 20 years
(33% of total fleet in
140
Number of Aircraft
service)
120
100
80 161
147 146
60 128
91
40 74
20
15
0
0-5 6-10 11-15 16-20 21-25 26-30 31-35
Aircraft Age (Years)
Source: BACK (Fleet PC)
47. EMBRAER 170/190 Cabin Service
Q Mainline jet comfort
Q Cabin features:
Q no middle seat
Q large headroom
Q easier access to bins and
seats
Q faster boarding and
unboarding
Q Cabin can accommodate roll-on
bags up to 115% load factor
Q Superior ground service access
and baggage handling
Q Highest total baggage volume and
highest baggage volume per pax
in its category Actual mockup picture
48. Advisory Boards / Steering Groups
Q Design process driven by Customer requirements
1st AAB 3rd AAB 1st SG
1999
2nd AAB
SJC - Brazil FLL - USA PAR - France SJC & LAX
March April September October
7 Airlines 9 Airlines 20 Airlines 11 Airlines
2000
2nd SG 4th AAB 3rd SG
SJC & LAX FLL - USA SJC - Brazil
January June November
13 Airlines 24 Airlines 16 Airlines
2001
1st MMI 5th AAB 2nd MMI 3rd MMI 4th MMI
SJC – Brazil SJC - Brazil PAR - France SJC - Brazil SJC - Brazil
April April May July September
11 Airlines 27 Airlines 6 Airlines 11 Airlines 9 Airlines
Total of 27 Airlines and 154 Experts
Total of 27 Airlines and 154 Experts
49. EMBRAER 170/190 Family Orderbook
Firm Options Total
EMBRAER 170 82 130 212
EMBRAER 190 30 72 102
Total 112 202 314
As of January/2002
52. Market Forecast 2002-2011
30-120 Seats: 4,085 Jets
USA, Canada Europe
& Caribbean 960
2,130 24%
24% China
52%
52% 275
Africa & 7%
7%
Middle East Asia
Latin Pacific
America 130
3%
3% 245
345 6%
6%
8%
8%
53. Market Forecast 2002-2011
30-60 Seats: 1,810 Jets
USA, Canada Europe
& Caribbean 255
14% China
1,260 14%
70%
70% 105
Africa & 6%
6%
Latin Middle East Asia
America 60 Pacific
80 3%
3% 50
4%
4% 3%
3%
54. Market Forecast 2002-2011
61-90 Seats: 1,085 Jets
61-90 Seats: 1,085 Jets
USA, Canada Europe
& Caribbean 410
335 38%
38% China
31%
31% 90
Africa & 8%
8%
Middle East Asia
Latin 40 Pacific
America 4%
4% 85
125 8%
8%
11%
11%
55. Market Forecast 2002-2011
91-120 Seats: 1,190 Jets
USA, Canada Europe
& Caribbean 295
535 25%
25%
China
45%
45% 80
Africa & 7%
7%
Middle East Asia
Latin 30 Pacific
America 2%
2% 110
140 9%
9%
12%
12%