62
Frederico Fleury Curado Executive Vice President Civil Aircraft 5 th Annual Analyst & Investor Meeting November 19 th , 2004 São Jose dos Campos SP, Brazil Civil Aircraft Market Outlook and Trends

Embraer fifth annual investor meeting civil aviation market - corporate & airline

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Page 1: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

Frederico Fleury CuradoExecutive Vice President Civil Aircraft

5th Annual Analyst & Investor MeetingNovember 19th, 2004

São Jose dos Campos SP, Brazil

Civil Aircraft Market

Outlook and Trends

Page 2: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Forward Looking Statement

This presentation includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: general economic, political and business conditions, both in Brazil and in our market. The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,”“expects” and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.

Page 3: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

• Corporate Aircraft Market Update

• Industry overview

• Market Forecast

• Airline Market Update

• Industry overview

• Embraer positioning

• Competitive environment

• Market Forecast

• EMBRAER 170 Entry Into Service

Contents

Page 4: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

The Legacy World

Page 5: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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40 aircraft, 11 countries, the right choice

The world has discovered the Legacy

Page 6: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Aircraft Maintenance Services

16 Authorized Service Centers offeringairframe line and heavy maintenance

Wherever operators need

Customer Support - Service Center Network

Page 7: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Supporting our clients around the world

Fort Lauderdale• 26,2 K Part Numbers• Service Hours=24/7• 5.0 K Line items/month• Inventory value = $ 103.9 M

Paris• 24.7 K Part Numbers• Service Hours=24/7• 2.4 K Line items/month• Inventory value = $ 123.8 M

Beijing• 3.1 K Part Numbers• Service Hours=12/6• 1.6 K Line items/month• Inventory value = $ 15.9 M

S José dos Campos• 22.1 K Part Numbers• Service Hours=12/6• 6.1 K Line items/month• Inventory value = $ 62.9 M

4 Distribution Centers distribute parts to Service Centers

Customer Support - Parts Distribution Centers

Page 8: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Changing the expectations for a Business Jet

99% dispatchreliability

Over 120 hours per month in fractional operations

Exceptional passenger acceptance

Image building up in the market

Reliability

Page 9: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Higher Productivity @ Lower cost leading to Greater value

Price vs. Productivity Index

Challenger 300

HorizonG200

Legacy

Falcon 2000

200

220

240

260

280

300

320

340

360

15.00020.00025.00030.00035.000

Price US$ x 1,000

Pro

du

ctiv

ity

Ind

ex [

(Sp

eed

x C

abin

Vo

lum

e x

Ran

ge)

/TO

FL

] x

1,00

0

BETTER

A Differentiated Value for Customers

Page 10: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Promises made ... results delivered

2000

Announcement

2001

Maiden Flight

2002

Certification

CTA FAA JAA CIS

EnhancementsNew Interior

2003

Range(weight reduction)

(aerodynamics improvement)

2004

MaintenancePlan

Program Landmarks

Page 11: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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2004 Recent Achievements

Page 12: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Special Runway Operation: LCY

The Legacy is ready for the most demanding and stringent missions

First large cabin twin jet capable to operate in LCY

Steep approach capability fulyoperational

Wet and dry operations

First principles software

Increased range capability:

London - Moscow

London - Cairo

London – Azores8 pax4 pax

Mach 0.74

Page 13: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Lower Maintenance = Higher Availability

Further task optimization

Calendar limitation escalation

4 stops per year ( 2 at service centers )

Extended flexibility

Reduced maintenance costs

Available on 1Q 2005

Maintenance Plan optimazation

Page 14: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Embraer’s Commitment to the Corporate Aircraft Market

What´s Planned for 2005?

Page 15: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Improved mission capability

More flexibility

Freedom: avoid congested flight levels

Less turbulence

Less traffic

Available as of March 2005(also as a SB for current operators)

41,000 ft

Ceiling

Page 16: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Connected at the speed of business

In-touch, round the clock, around the globe

En route productivity enhancement

In-flight office – taking care of business

Available as of 2Q 2005

HSD - High Speed Data

Connectivity

Page 17: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Enriching Personal Comfort and Flying Experience

Greater comfort

Personalized ambience feature

Ease of maintenance

Enhanced illumination

Available as of 2Q 2005

LED lighting / Window shade

Interior Ambiance

Page 18: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Commitment to product excellence and differentiation

In-house capability

Higher level of customization

Cost and time savings

Production to start in 2005

Interior Completion Capability

Page 19: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Embraer

Corporate Aircraft Market

Forecast (2005 – 2014)

Page 20: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

2,430 aircraft in target segment

Embraer Market Forecast

5,130

945

1,485

Deliveries(aircraft)

Embraer Forecast (Embraer Forecast (20052005--20142014): ): 77,5,56060 aircraft aircraft -- US$ US$ 130130 billionbillion

71.3Other

28.5Large

30.0Super Midsize

Revenues(US$ bi)

Category

Revenues (cumulative)Deliveries (cumulative)

Very Light6%

Entry13%

Light11%

Mid light14%

Mid Size13%

Large13%

Ultra Long range9%

Global2%

Super midsize18%

Entry4%

Light4%

Mid Size10%

Large22%

Very Light1%

Global6%

Mid light8%

Ultra Long range22%

Super midsize

18%

Page 21: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

Airline Market

Page 22: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

60

80

100

120

140

160

180

200

jan/00

abr/0

0jul

/00ou

t/00

jan/01

abr/0

1jul

/01ou

t/01

jan/02

abr/0

2jul

/02ou

t/02

jan/03

abr/0

3jul

/03ou

t/03

jan/04

Majors Low Cost Regional

Source: EMBRAER

US Domestic ASM Evolution (Index 100)

Shifting Capacity Among Business Models

Page 23: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Share of US Domestic RPM

85%78%

69%

52%

3% 5% 8%19%12%

17%22%

29%

0%

20%

40%

60%

80%

100%

1995 2000 2003 2014F

Majors Low Costs Regionals

...

Source: WATS, Embraer

US Airline Industry Evolution

Page 24: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

85%77%

68%

48%

14% 16% 19% 21%1%

6%13%

31%

0%

20%

40%

60%

80%

100%

1995 2000 2003 2014F

Majors Low Costs Regionals

...

Share of Intra-European RPKs

Source: AEA, ERA, ATI, Embraer

European Airline Industry Evolution

Page 25: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

0

200

400

600

800

1.000

1.200

1.400

1.600

2000 2001 2002 2003 2004E 2005F 2014F

Majors Low Costs Regionals

US Domestic RPM (Billion)

...

Source: WATS, Embraer

Traffic Recovering Slowly

Page 26: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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0

10

20

30

40

50

60

2001 2002 2003

ASM - (Billion)

50%

55%

60%

65%

70%

75%

2001 2002 2003

Load Factor

Source: EMBRAER

US Regionals

Page 27: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

0

40

80

120

160

200

2001 2002 2003

ASM - (Billion)

50%

55%

60%

65%

70%

75%

80%

2001 2002 2003

Load Factor

Source: EMBRAER

US LCC’s

Page 28: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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400

420

440

460

480

500

520

2001 2002 2003

ASM - (Billion)

50%

55%

60%

65%

70%

75%

80%

2001 2002 2003

Load Factor

US Majors

Page 29: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Source:

10

11

12

13

14

15

16

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Yie

ld (

US

¢/R

PM

)

1998 1999 2000 2001 2002 2003 2004

US Domestic Yield Evolution

Page 30: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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37 Seats

44 Seats

50 Seats

50 Seats (2,000 nm range)

Responding to Market Needs

Page 31: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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There are currently 5244 TPs in Active Service Worldwide

TP<201304%

TP3588028%

TP5072323%

TP7038212%

TP20104533%

TP<2026713%

TP20154475%

TP35754%

TP501427%

TP70161%

Scheduled Flights(3160 TPs)

Non-Scheduled Flights(2084 TPs)

Opportunities for TurboProp Substitution

Page 32: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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- Typical European airline OEW

- Full PAXPassengers at 90.7 kg (200 lb)

- Cruise at LRC

- Airport Temp. at 20.5ºC / ISA+5.5ºC (85% Summer)

- 85% Summer Winds

- JAR OPS Reserves100 nm alternate

ERJ 135

ERJ 135: Steep Approach Capable (London City Airport)

Still Air Range: 600 nm

Opportunities for New Route Development

Page 33: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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ERJ 145 Family Worldwide Fleet SR and CR

SR=98.95% (15 min. delay)

CR=99.73% (completion)

Schedule Reliability & Completion Rate12 Months Moving Average

REF.SEP/2004

Page 34: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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148

109

20

19

FirmBacklog

7741,353431922Total

5951,112408704ERJ 145

741142094ERJ 140

1051273124ERJ 135

DeliveriesTotalOptionsFirm(as of 3rd quarter, 2004)

ERJ 145 Family Orderbook

Page 35: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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70 – 78 Seats

78 – 86 Seats

98 - 106 Seats

108 – 118 Seats

Engineering Ergonomics Economics Efficiency

The E- Jets Family

Page 36: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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0

5

10

15

20

25

50 60 70 80 90 100 110 120 130 140 >150

%

2000200120022003

Source: Back (US DOT T100)

Opportunity for Right Size – Aircraft Capacity

Page 37: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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0

200.000

400.000

600.000

800.000

1.000.000

Num

ber

of F

light

s

100 300 500 700 900 1100 1300 1500 1700 1900 2250 2750 >3000

Distance Sector (nm)

Source: Back - OAG

1995

2003

Total Market Served by 91-180 Seats Aircraft (US Airlines)

The Opportunity for Right Size - Range

Page 38: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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EMBRAER 170 / 190 Family Orderbook

289

15

155

119

FirmBacklog

36708383325Total

-352015EMBRAER 195

-370215155EMBRAER 190

36303148155EMBRAER 170

DeliveriesTotalOptionsFirm(as of 3rd quarter, 2004)

Page 39: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

Competitive

Environment

Page 40: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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30Y30Y 50Y50Y 70Y70Y 90Y90Y 110Y110Y 130Y130Y

Scope

PotentialNew Entrants

Embraer Commercial Jets Unique Position

Page 41: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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ERJ 135ERJ 135

ERJ 140ERJ 140

ERJ 145 and 145XRERJ 145 and 145XR

CRJ200 / 440CRJ200 / 440

328JET328JET

?

30-60 Seat Jet Competitors

Page 42: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

45%42% 44%45%46%

50%

7%

17%

32%43%

52%

93%

83%

67%

51%54%51%

45%

49% 50%

4% 5%4%6%5%

0%

20%

40%

60%

80%

100%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

EMBRAER BOMBARDIER AVCRAFTSource:

Embraer

Evolução do Market Share (30-60 pax)

50%

45%

PossibleACA cancelation

of 34 CRJ200

Page 43: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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ARJ21ARJ21

CRJ900CRJ900

EMBRAER 175EMBRAER 175

EMBRAER 170EMBRAER 170

CRJ700CRJ700

RRJRRJ?

61-90 Seat Segment Competitors

?

Page 44: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

21%

28%33% 36%

16% 19%

72%

53%

49%52%

87%

64%67%

14%

32% 30%27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

EMBRAER BOMBARDIER FAIRCHILD DORNIERSource:

Embraer

Evolução do Market Share (61-90 pax)

Page 45: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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B717B717

EMBRAER 190EMBRAER 190

EMBRAER 195EMBRAER 195

B737-600B737-600

A318A318ARJ21ARJ21

RRJRRJ

??

91-120 Seat Segment Competitors

Page 46: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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0% 0% 0% 0%

7%7%6%

25%

7%

73%66%

61%

67%

100%

59%55%

26%32%

26%

20%16%

31%

14%

0%

20%

40%

60%

80%

100%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EMBRAER BOEING AIRBUSAs of 2nd

Quarter 2004Source:

Embraer

Evolução do Market Share (91-120 pax)

Page 47: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

Embraer

Market

Forecast

Page 48: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Worldwide Jet Deliveries by Capacity Segment

4,6004,600

1,7501,750

1,5501,550

1,3001,300

2015 2015 –– 20242024

7,8007,800

3,0003,000

2,8502,850

1,9501,950

2005 2005 –– 20242024

3,2003,200TOTALTOTAL

1,2501,25091 91 –– 120120

1,3001,30061 61 –– 9090

65065030 30 -- 6060

2005 2005 –– 20142014SegmentSegment

30 to 12030 to 120--seat segment value = US$ seat segment value = US$ 170170 billionbillion

Embraer Market Forecast 2005-2024

1,4501,450 2,6002,6001,1501,150

4,7504,750 8,4508,4503,7003,700

1,7001,700 2,9502,9501,2501,250

1,6001,600 2,9002,9001,3001,300

20142014--20232023 20042004--2023202320042004--20132013

30 to 12030 to 120--seat segment value = US$ seat segment value = US$ 180180 billionbillion

Page 49: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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AsiaPacific

471

6%

AsiaPacific

471

6%

China

635

8%

China

635

8%

USA, Canada& Caribbean

4,165

53%

USA, Canada& Caribbean

4,165

53%

30 - 120 Seats: 7,800 Jets

Europe

1,319

17%

Europe

1,319

17%

LatinAmerica

538

7%

LatinAmerica

538

7%

Middle East

& Africa

1773%

Middle East

& Africa

1773%

CIS

495

6%

CIS

495

6%

Market Forecast 2005-2024

Page 50: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

EMBRAER 170

Entry Into Service

Page 51: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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EMBRAER 170 EIS Statistics

Operators 4

Aircraft in Service 37

Flight hours 29,165

Flight Cycles 21,567

Operating Summary – from March 5th to October 24th

PR13/Oct/04

LOTLOT AlitaliaAlitaliaUSAirwaysUSAirways UnitedUnited

Page 52: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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SR = 97.7

CR = 99.5

90

91

92

93

94

95

96

97

98

99

100

M J J A S O

Schedule ReliabilityCompletion Rate

EMBRAER 170 EIS Statistics

Last 6 Months Schedule Reliability and Completion Rate

Page 53: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Source: BackOAG Oct2004 Oct 2004 – 100 Routes

EMBRAER 170 Operations at US Airways

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Source : Back – OAG Data, Sep2004

Route

Equipment 733 319 E70 733 319 E70 733 E70

2nd Qtr 2003 203 42 0 134 121 0 161 0

2nd Qtr 2004 60 0 153 96 78 97 3 88

3rd Qtr 2004 0 0 198 0 0 342 0 127

PHL-IAH BNA-PITMCI-PHL

Total flights per quarter

Lower cost per trip . . .

Better economics !

Rightsizing

Page 55: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.Source : Back – OAG Data, Sep2004

Route

Equipment DH8 SF3 E70 DH8 SF3 E70

2nd Qtr 2003 161 0 0 28 40 0

2nd Qtr 2004 26 61 177 0 169 60

3rd Qtr20 04 0 0 197 0 0 130

BUF-PITPIT-SYR

Higher service standards . . .

Better competitiveness and higher market share !

(240 nm) (164 nm)

Turboprop Replacement and Market Growth

Page 56: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

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Source: BackOAG Oct2004Oct 2004 – 40 Routes

EMBRAER 170 Operations at Alitalia

Page 57: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.Source : Back – OAG, June 2004

Same service level, fewer seats . . .

Lower cost, better economics !

Eqp Operation Departure Seat

MD80 xSaSu 07:45LIN 155FRA June

Operator Orig Dest

2003

Jan2004

Capacity

LIN FRA

E170 xSaSu 07:40 72June2004 E170 daily 16:00 72

LIN FRA

A319 15:55 124dailyA319 20:05 124xSa

A319 xSaSu 07:50 124A319 15:55 124dailyA319 20:15 124xSa

E170 xSa 20:10 72

Total Seats

18 weekly 2387

18 weekly 2232

18 weekly 1296

Rightsizing

Page 58: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.Source : Back – OAG, June 2004

Enhanced frequency level . . .

More revenue, better economics !

Operator Orig Dest EqpDays of

Operation DepartureSeat

Capacity

FCO VIE Jul 2003 A319 daily 14:25 124

FCO VIE Jul 2004 E170 daily 09:00 70E170 daily 16:35 70

Total Seats

980

868

14 weekly

7 weekly

Rightsizing and Market Development

Page 59: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.Source : Back – OAG, June 2004

Improved service levels . . .

More revenue , better economics !

EqpDays of

OperationDeparture

Seat

MD80 xSa 16:00LIN 155BCN June

Operator Orig Dest

2003

MD80 xSu 06:45 155June2004

E170 xSa 16:55 72

Capacity

Additional daily frequency on business routes

LIN BCN

930

1362

Total Seats

12 weekly

6 weekly

Mixed Operation

Page 60: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Source: BackOAG Oct2004Oct 2004 – 81 Routes

EMBRAER 170 Operations at LOT

Page 61: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.Source : LOT

WAW DUB xTuSa 20:20 70Nov2004

E170

EqpDays of

OperationDeparture SeatOperator Orig Dest

CapacityTotal Seats

350

New Routes Implementation

Page 62: Embraer fifth annual investor meeting   civil aviation market - corporate & airline

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.