Story ID: 400 Embraer Pellegrini_EMBARGO.doc
Embraer Has Some Celebrating To Do
By: Mark Phelps
Caption: With the Legacy 450 about to enter service, Brazil’s home-team OEM is on a roll.
Word Count: 861
Embraer Executive Jets has some celebrating planned for LABACE this year. Not only does the 2015 edition of the show mark the 10th anniversary of the formation of EEJ, a “dedicated organization for the business aviation market,” but (if all has gone to plan as hoped) CEO Marco Tulio Pellegrini will be hosting Brazilian aviation authorities in celebrating certification of the Legacy 450, Embraer’s latest member of its business jet family.

The Legacy 450 is making its Latin American public debut at LABACE and is on display with a complete interior for the first time. It joins a fleet that encompasses a range of business aircraft from the light Phenom series to the bizliner Lineage 1000, and at least two of these are likely to be present in the LABACE static display also.

The 450 appeared at the EBACE show in Geneva in May, but was not outfitted with a passenger interior. Embraer embraces its “disruptive market approach” as the first fly-by-wire mid-light business jet. Set to enter service before year-end, the flight test campaign has shown the Legacy 450’s performance to be comparable to that of the Legacy 500 (which entered service a year earlier), having met or exceeded its design goals.

Speaking of markets, as the “home team” here at LABACE, Embraer views the Latin American business aviation landscape with an interesting perspective. “Mexico and Brazil are home to the second- and third-largest business jet fleets in the world (890 and 840 respectively),” said an Embraer spokesman, who also noted that the Brazilian fleet has doubled in size in the 10 years since the inception of Embraer Executive Jets. And since São Paulo is the business center of the Mercosur economy, LABACE is an excellent opportunity to showcase Embraer’s business jet fleet for the region. “LABACE always has visitors from Peru, Colombia, Panama, Chile and other South American countries,” Pellegrini told AIN. “Our message to the Latin American market is ‘business aviation gives much better access than the airlines.’”

Still, Embraer faces the same challenges all businesses face in the region. The economy has not been conducive to growth, and the uncertainty makes it difficult to set firm plans. Pellegrini said, “It has been a challenge for everyone to make predictions. Unfortunately, we do not have a crystal ball. Confidence plays an important role. Exchange rates compromise the ability to sell products with U.S.-dollar-based pricing. But it’s a matter of time. 2015 has been a challenge, but it will grow again. When? I cannot predict, but the natural market will be back.”

Interestingly, Pellegrini said low oil prices have only a “marginal effect” on business aircraft operators. The main impact of oil pricing is on the overall economy and that leaves its imprint on business aviation. Over the next decade, Embraer envisions demand for 850 new business jets in Latin America with a value of US$16 billion. With a total of close to 900 of its jets in operation worldwide, Embraer has more than 200 aircraft flying in the region.

Moving much of its manufacturing to the U.S. has made a “large contribution” to Embraer’s success in the business aviation market, said Pellegrini. With signs of recovery in the U.S. economy, Embraer predicts that market will represent half of business jet sales over the next 10 years. Pellegrini said the Melbourne, Florida Embraer facility is key to tapping that demand. And a large part of the equation is enhancing what he calls the “customer experience.”

He described a customer visit to Melbourne: “On a Saturday, he came to test fly a Phenom 300. He brought his wife, his whole family and his pilot. He saw one of the best final assembly plants in the world, with modern technology–a touch computer screen where he could track production status. They experienced a delightfully elegant customer center; and visited our engineering center where 100 engineers are dedicated to interiors, STCs [supplemental type certificates] and enhancements for existing models. But the main point is, it was a very pleasant experience.”

Pellegrini said that focus on a “pleasant customer experience” extends across the board to everything Embraer Executive Jets does, including sales calls, website visits, and even attending business aviation shows such as LABACE. “We’ve invested heavily in the fundamental customer experience,” he continued. “Improving our footprint, expanding parts availability, trying–no, not trying, doing–improving not just customer support, but all touch-points of the customer experience. Think car buying. It’s fundamental that you are well received, by all means and at all steps of the process. I can tell you, it’s easy to say, but very tough to implement. Our goal is to exceed customer expectations in every way possible.”

Pellegrini is proud of what Embraer Executive Jets has achieved in 10 years. He cites the Phenom 300 as an example. “We started in 2005 with a clean sheet of paper. We delivered the first Phenom 300 in 2009 and it now leads all business jets in deliveries.

“It’s a journey. We’d like to be in the same shape with the [Legacy] 450 and 500. That’s our vision.”