Brazilian company Embraer has been showing off a mock interior of its new E2 aircraft in Sydney. Photo / Grant Bradley
Brazilian company Embraer has been showing off a mock interior of its new E2 aircraft in Sydney. Photo / Grant Bradley
Embraer says its aircraft for 80 to 130-plus passengers a good fit with NZ secondary holiday airports
Airplane seller Mark Dunnachie is on the start of what could be a long journey in this region.
He's head of Embraer in the Asia-Pacific and the Brazilian company is keen to sell its new-generation planes in this part of the world - aircraft it says would fit well into this country.
He says breaking into a market can take years but as a fan of the Scottish rugby team he knows a thing or two about patience and doing it tough.
"I'm a Scot by heritage and patience is something we understand. We have to take time to show, convince and lobby - that's something in my DNA and a sales campaign can take four years."
Embraer, older than Airbus and the world's third biggest commercial plane manufacturer, was in Sydney last week showing off a mock interior of its new E2 aircraft which carry 80 to 130-plus passengers. It says it offers new levels of comfort in a remodelled cabin and with new engines and wings, is more efficient. The first of the new models, the E190-E2, is due to come into service in the first half of 2018. It already has 210 firm orders and 390 options and purchase rights.
Its first generation E-Jets are flying with 65 airlines - covering legacy, low cost and regional carriers - from 45 countries.
Embraer claims 62 per cent of the regional jet market, well ahead of Canadian rival Bombardier, and has 57 aircraft in this region including executive jets, for which it is well known.
So what make the company think it can sell more of their planes in this region, including New Zealand?
The 46-year-old company cites International Air Transport Association research which shows that while yields are dropping on main trunk popular routes, secondary markets are ripe with opportunities to enhance profit - with the right capacity aircraft.
"The tourist potential gives a different dynamic. Everybody wants to visit New Zealand. They want to go and see the beauty of New Zealand - we think connectivity is going to be a key factor. We feel we have the product offering," Dunnachie said.
"We have no formal discussions with Air New Zealand, we keep in contact and they keep in contact with us to understand the product."
But Air New Zealand is in the business of simplifying its fleet and shows no sign of widening it beyond the current mix of Boeings, Airbus A320s, ATRs and Q300s.
And while Virgin Australia has Embraers it says it has no plans to expand its fleet.
"We regularly engage with all of our aircraft manufacturers and remain interested in all new models coming to the market, which we will evaluate in the context of our longer term strategy," a spokeswoman said.
Embraer said it had no formal discussions with Qantas either.
Dunnachie said the E2 doesn't replace A320s, it complements them and beyond 250 nautical miles (460km) the economics of his new planes would beat those of a turbo prop, he said.
"Nobody's disputing that up to a certain distance a turbo prop burns less fuel."
But it's not just domestic routes that have Dunnachie excited about opportunities here. He looks at flying transtasman, too, (the new planes have the range and are approved to do so) and thinks secondary holiday airports are a logical target.
"You can go from this to an A320 or widebody with the same baggage and take their bags on board. That seamless service at the high end of the tourism curve could be a real winning factor."
Following the Sydney cabin display, Embraer will take it to the Paris Air Show in June and Dubai Airshow in November in search of more airline customers, all part of the long process of winning a request for a proposal from airlines.
• Grant Bradley travelled to Sydney courtesy of Embraer.
Right price important to customers
Mark Dunnachie, Embraer vice president of Asia Pacific. Photo / Supplied
Embraer has spent about US$2 billion ($2.61 billion) on developing its latest range of regional jets.
But while the E2 jet is the product of a nose-to-tail revamp of the first generation of the plane, Embraer's Asia Pacific vice-president Mark Dunnachie says the end result has to be priced right for customers.
The largest plane, the E195, has a list price of US$64.2 million and can carry 130-plus passengers. Although not direct competition, Airbus A320s capable of carrying 150-180 passengers have an off-the-rack price of US$100 million and Boeing 737s, which can carry between 120 and 220 passengers, sell for US$113 million.
Dunnachie said in the regional jet market operators expect "sensible" pricing.
"We've taken the approach to any pricing for our customers - what's the cost benefit to our customers. We've used composite where it makes commercial sense, we've used conventional materials where it makes better sense."
This means the E2 is made predominantly of aluminium although some carbon fibre is used in the wings and the tail section.
The E2 can turn around in 20 minutes at remote airfields and doesn't need special equipment to reach baggage bays.
In the cabin the overhead storage bins are 40 per cent larger than those of current generation E-Jets.
In the mocked up economy class cabin there are two seats on each side of the aisle. The slimline seats are 46.4cm wide compared with around 43.6cm on some 737s.
In the premium class there's a new option of staggered individual seats, which provides 127cm or more of leg room. In the entrance area there's an electronic display board for flight information or advertising and bamboo flooring, which subject to meeting flammability tests could be incorporated into production aircraft.
The E2 cabin will have options for Wi-Fi internet connectivity and individual screens for in-flight entertainment. To help style the interior, Embraer hired PriestmanGoode, a British design firm with experience in aircraft cabins, airports, public transport and high speed trains.
The wings have been redesigned and the aircraft will use new generation Pratt & Whitney engines.
The PW1000G engine has a fan drive gear system that allows the engine's fan to operate at slower speeds resulting in significantly lower fuel consumption, emissions and noise.
Dunnachie said all airlines want bottom-line benefits.
"If you go to a benchmark airline like say KLM [they say], 'Don't come through my door unless you bring a 15 per cent improvement on new product'."
