Embraer's Phenom 100E to Expand Etihad's Training Fleet - Analyst Blog
Embraer SA’s ERJ unit Embraer Executive Jets said that it received orders for four Phenom 100E jets from Etihad Flight College, a wholly owned subsidiary of Etihad Airways. The purchase agreement also contains an option for three additional aircraft of the same model.
If Etihad Airways’ unit exercises all options, the entire deal will be valued at $30 million at current list prices. Embraer will start delivering the aircraft from the first quarter of 2016. The addition of these jets will expand the size of Etihad Flight College’s trainer fleet aircraft to 20.
Phenom 100E is ideally suited for training purposes primarily due to its high performance and low maintenance and operating costs. The jet is designed for an economic life of 35,000 hours, way ahead of its closest competitors. In addition, advanced cockpit technology and high reliability make them a favored choice for upcoming pilots.
Pratt & Whitney, a unit of United Technologies Corp. UTX, provides the engines for Phenom 100E. This makes the aircraft fuel efficient and low on carbon emissions. The popularity of Embraer lies not only in the quality of its aircraft but also in the efficient after-sales services that it offers to its clients through a global network of 75 proprietary and authorized service centers.
The high efficiency Phenom 100E jets will help Etihad Flight College to train Emirati and international cadets. The demand for trained pilots is likely to increase over the next two decades if we consider the long-term outlook provided by The Boeing Company BA for the 2013 to 2033 frame. Boeing estimates the operating fleet of 20,910 aircraft in 2013 to increase to 42,180 aircraft in 2033, which will definitely require more trained pilots.
Embraer SA currently has a Zacks Rank #3 (Hold). A better-ranked option in the same space is Lockheed Martin Corporation LMT, currently carrying a Zacks Rank #2 (Buy).
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