Embraer E175-E2 Service Entry Postponed

 In COVID-19, Air

Embraer E175. Image – Embraer

Citing cur­rent market con­di­tions for com­mer­cial avi­a­tion result­ing from the COVID-19 pan­dem­ic, Embraer has resched­uled the start of oper­a­tions of its new E175-E2 jet­lin­er until 2023.  The com­pa­ny is con­tin­u­ing devel­op­ment work on the air­craft, though now on this revised time­line.  Service entry of the E175-E2 had pre­vi­ous­ly been sched­uled to occur in the late 2021 to early 2022 time­frame.

The E175-E2 is part of Embraer’s second-gen­er­a­tion E‑Jets series called the E2 family, which con­sists of re-engined and rewinged ver­sions of the orig­i­nal Embraer 175, 190, and 195 air­craft.  The E175-E2 can accom­mo­date 80 – 90 pas­sen­gers, and it is pow­ered by Pratt & Whitney PW1700G geared tur­bo­fan engines.

No firm orders for the E175-E2 were includ­ed in Embraer’s offi­cial back­log as of the end of June 2020.  However, the com­pa­ny does have a con­di­tion­al com­mit­ment for 100 E175-E2s from the U.S. region­al air­line com­pa­ny SkyWest.  Uncertainty exists, though, as to whether SkyWest will be able to oper­ate the E175-E2.  At the present time, the E175-E2 cannot be oper­at­ed by region­al air­lines flying under con­tract to the three major U.S. air­lines.

Scope claus­es in pilot con­tracts at the U.S. majors pro­hib­it their region­al part­ners from oper­at­ing any air­craft that has a max­i­mum take­off weight exceed­ing 86,000 pounds or (with one minor excep­tion) that seats more than 76 pas­sen­gers.  While the E175-E2 can be con­fig­ured with 76 seats, it has a max­i­mum take­off weight of 98,326 pounds, plac­ing it beyond cur­rent scope restric­tions.

Scope claus­es can, and his­tor­i­cal­ly have been, lib­er­al­ized as the pilot con­tracts become amend­able.   In the mean­time, a market does exist for region­al jet­lin­ers that are too large or heavy to be scope-com­pli­ant.  Such air­craft can be acquired by region­al air­lines unen­cum­bered by strict scope claus­es as well as by low-fare car­ri­ers, leas­ing out­fits, and major air­lines.  Much of this market is locat­ed out­side the U.S., par­tic­u­lar­ly in regions such as Europe or the Asia/Pacific area.

Meanwhile, the orig­i­nal Embraer 175, which is com­pli­ant with cur­rent U.S. scope claus­es, con­tin­ues in pro­duc­tion.  As of June 2020, Embraer had a com­mer­cial avi­a­tion back­log of 159 firm orders for the 159 175.   Customers also held 291 options for the air­craft.

The 175 will likely con­tin­ue in pro­duc­tion for many years to come.  Embraer picked up 44 net orders for the 175 in 2019 and no less than 168 in 2018.  Nearly all of these orders were from U.S. car­ri­ers.

Even after the E175-E2 enters ser­vice, Embraer may con­tin­ue to market and pro­duce the orig­i­nal 175 for as long as demand for it con­tin­ues.  The company’s hybrid assem­bly line in São José dos Campos can turn out both models simul­ta­ne­ous­ly.  Indeed, demand for the 175 from U.S. car­ri­ers can be expect­ed to con­tin­ue for as long as the cur­rent scope limits on air­craft weight remain in place.

Forecast International’s Civil Aircraft Forecast covers the rival­ry between Airbus and Boeing in the large air­lin­er sector; the emer­gence of new play­ers in the region­al air­craft seg­ment look­ing to com­pete with Bombardier, Embraer, and ATR; and the shift­ing dynam­ics within the busi­ness jet market as air­craft such as the Bombardier Global 7000, Cessna Hemisphere, and Gulfstream G600 enter ser­vice. Also detailed in this ser­vice, are the var­i­ous market fac­tors pro­pelling the gen­er­al aviation/utility seg­ment as Textron Aviation, Cirrus, Diamond, Piper, and a host of others battle for sales and market share.  An annual sub­scrip­tion includes 75 indi­vid­ual reports, most with a 10-year unit pro­duc­tion fore­cast. Pricing begins at $2,295, with dis­count­ed full-library sub­scrip­tions avail­able.  Click here to learn more.

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