India An Exciting Biz Jet Market

SP’s ShowNews (SP’s): Can you give a brief background of your company's association with India?

Jose Eduardo Costas (Costas): Embraer has a strong presence in the Indian market and counts the national government, private corporations and individuals as customers and operators of a significant number of in-service Embraer jets in executive configuration.

With 18 jets based in India presently, the country is home to over a third of the more than 40 Embraer jets in executive configuration in the country, with at least one 'type' from Embraer's family of Phenom, Legacy and Lineage jets, in service today. Embraer's executive jets based in India today represent over 10 per cent of the entire fleet of executive jets (160+ jets according to CAPA) in service in India today.

In addition, the Company's Defense and Security business area is in collaboration with India's DRDO for the development of three bespoke EMB 145 platforms for use in AEW&C missions. The Indian Government also operates five Legacy aircraft for the transport of VIPs and dignitaries. The Indian Air Force (IAF) operates four of these jets, and the Border Security Force (BSF) operates one.

SP’s: What are the activities you are focusing on currently and how do you foresee the future in India?

Costas: We have a robust line of executive jets and promote them all, as they each meet different needs and purposes, so it's a matter of matching the best possible plane to the prospective customer, so they and the plane receive the optimum result from their relationship.

In India, we continue to market all our seven biz jets, participate in shows such as Aero India, bringing our aircraft to prospects and customers so they experience the full benefits - both operationally as from a passengers' point of view - of the plane, and are a member of the local aviation organisation BOAO. We are optimistic and confident our association and business development activities in India will not only contribute to the development of the industry in the country, but also see the growing maturity and sophistication of the industry in India.

SP’s: What makes you feel that India is an exciting market?

Costas: First of all, business aviation is still in its infancy in India and there is much potential for growth in terms of the development of the industry, such as to increase the use of business jets and in so doing, contribute to the economy through the development of infrastructure like FBOs, aviation services catering to biz jets, and event related industries like travel, hospitality, etc. India's leading 500 companies generate almost $1 trillion in annual revenues and corporate profits have increased almost 50 per cent in just three years. These are encouraging signs for us.

As more businessmen and travellers discover the productivity value of business jets, and therefore a necessity rather than a luxury - especially for business productivity - we are optimistic biz jets will be more in demand, and we have products to cater to every kind of need.

There is also the opportunity for fleet renewal - almost 60 per cent of all biz jets in India are over six years; more than half this number of jets are older than 10 years so its timely for owners and operators to review their fleets for reasons of safety and also upgrades in technology today allow for more efficient jets to be used.

SP’s: What capabilities you plan to showcase during Aero India?

Costas: Embraer will promote its full portfolio of its Executive Aviation, Commercial Aviation and Defense and Security products and services. Three of the Embraer Executive Jets aircraft will be on static display: the entry-level Phenom 100, the long-range Legacy 650 and the ultra-large Lineage 1000.

SP’s: Would you like to refer to any important innovation of your company?

Costas: To pinpoint a single innovation project for the moment, it would have to be the Legacy 500 midsize biz jet that has already completed its first flight and is undergoing its flight test phase currently, ahead of its entry into service in 2014. The Legacy 500 is set to raise the bar in terms of technology, performance, style and comfort for future designs, to break through the traditional midsize jet envelope to offer something that has never been done before.

For instance, it is the only midsize jet to incorporate fly-by-wire technology, and in doing so, enable more precision, efficiency, safety and comfort every time the aircraft flies. The aircraft also offers a 6-foot tall standup cabin, fully flat floor and a full wet galley, among other features, that will make it the foremost aircraft in its class.

The Legacy 500 is the sixth aircraft in its robust portfolio of seven aircraft which span almost all categories of executive jet types. The midsize Legacy 500 will be followed by Embraer's fourth clean-sheet design, the mid-light Legacy 450, which will enter service one year later.

Innovation however, is part of our heritage and DNA, and we practise innovation daily at Embraer. Past examples of innovative behaviour include the way the company married technological knowledge with entrepreneurial ability in 1994 during its privatisation, developing cutting-edge, game-changing aircraft for use in the commercial aviation market, diversifying its portfolio thereafter to offer products for executive use and then translating that into a wholly sustainable business unit with a robust line of seven jet aircraft for executive use.

Innovative projects and programmes are always being worked on at any one time at Embraer, and this is reflected also in our annual investments in research and development, which last year was $360 million.