Embraer Archives | Corporate Jet Investor https://www.corporatejetinvestor.com/organisation/embraer/ Events | News | Opinions Fri, 19 Jul 2024 09:20:13 +0000 en-US hourly 1 Embraer delivers 27 executive jets in second quarter https://www.corporatejetinvestor.com/news/executive-jets https://www.corporatejetinvestor.com/news/executive-jets#respond Fri, 19 Jul 2024 09:20:13 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=151121 Embraer delivered 27 executive jets in the second quarter of 2024 up from 18 in the first quarter of 2024 but lower than 30 in the same period last year, according to the Brazilian aerospace corporation’s second quarter results. The company’s backlog stayed flat at $4.6bn in comparison with the first quarter of 2024. In ... Embraer delivers 27 executive jets in second quarter

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Embraer delivered 27 executive jets in the second quarter of 2024 up from 18 in the first quarter of 2024 but lower than 30 in the same period last year, according to the Brazilian aerospace corporation’s second quarter results.

The company’s backlog stayed flat at $4.6bn in comparison with the first quarter of 2024.

In the light jet segment, Embraer delivered 18 Phenom 300s, up 80% from the first quarter and flat compared to same period last year. However, it delivered two Phenom 100.

In the mid-size segment, the company delivered three Praetor 500s and four Praetor 600s – flat on a sequential basis while declining from six and five respectively in second quarter of 2023.

So far, in the first half of 2023, Embraer has delivered 45 executive jets against the annual target of 125-135 deliveries. Jet deliveries are seasonal and usually pick up pace in third quarter with major chunk leaving the manufacturers’ hangars in the fourth quarter of fiscal year.

Overall, the company’s total backlog for executive, commercial and services segments hit a seven-year high of $21.1bn, up 20% year-over-year.

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Embraer expands SAF agreement with Avfuel https://www.corporatejetinvestor.com/news/embraer-expands-saf-agreement-with-avfuel https://www.corporatejetinvestor.com/news/embraer-expands-saf-agreement-with-avfuel#respond Thu, 23 May 2024 12:42:41 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=150506 Brazilian multinational aerospace corporation Embraer announced that it will increase its sustainable aviation fuel (SAF) offtake at the Melbourne Orlando International Airport (KMLB), Florida. Embraer first entered into a SAF agreement with Avfuel in July 2021 under which it received one 8,000-gallon truckload of Neste MY SAF per quarter to Sheltair MLB, the FBO that ... Embraer expands SAF agreement with Avfuel

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Brazilian multinational aerospace corporation Embraer announced that it will increase its sustainable aviation fuel (SAF) offtake at the Melbourne Orlando International Airport (KMLB), Florida.

Embraer first entered into a SAF agreement with Avfuel in July 2021 under which it received one 8,000-gallon truckload of Neste MY SAF per quarter to Sheltair MLB, the FBO that provides storage and handling services for Embraer.  

Under the new agreement, the Avfuel will make weekly SAF deliveries from April onwards. The partnership is expected to result in a total of 240,000 gallons of SAF delivered to Embraer in 2024.

“Embraer’s collaboration with Avfuel and Sheltair marks a pivotal milestone in our journey toward net-zero emission flight operations,” said Michael Amalfitano, president and CEO, Embraer Executive Jets. “Our continued investment in SAF demonstrates our dedication to reducing emissions today and driving the industry closer to the net-zero aviation goal by 2050.”

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Gogo Aviation net income jumps 49% in first quarter https://www.corporatejetinvestor.com/news/gogo-aviation-net-income-jumps-49-in-first-quarter https://www.corporatejetinvestor.com/news/gogo-aviation-net-income-jumps-49-in-first-quarter#respond Thu, 09 May 2024 11:08:32 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=150354 Gogo Aviation, a leader in aviation broadband connectivity, soared in the first quarter of 2024 as revenue climbed 6% year-over-year to $104.3m, fuelled by both service and equipment sales. Service revenue hit a record high of $81.7m, reflecting a 4% growth. Equipment sales also rose 13% to $22.6m. “Our first quarter performance was fuelled by ... Gogo Aviation net income jumps 49% in first quarter

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Gogo Aviation, a leader in aviation broadband connectivity, soared in the first quarter of 2024 as revenue climbed 6% year-over-year to $104.3m, fuelled by both service and equipment sales.

Service revenue hit a record high of $81.7m, reflecting a 4% growth. Equipment sales also rose 13% to $22.6m.

“Our first quarter performance was fuelled by advanced equipment revenue, which experienced a rebound from Q4 2023 and record service revenue, driven by a modest price increase and record advanced upgrades,” said Oakleigh Thorne, CEO and board chairman, Gogo Aviation in the earnings call.

Gogo is expanding its reach, with shipments of their AVANCE equipment up 16% year-over-year to 258 units. The total number of ATG aircraft online also grew slightly, reaching 7,136. Engagement with these connected aircraft remained strong, with average monthly revenue per aircraft (ARPU) rising 2% to $3,458.

Impressive financial performance wasn’t limited to the top line. Gogo’s net income surged 49% year-over-year to $30.5m, translating to diluted earnings per share of $0.23.

This strong bottom line led to a healthy cash flow position. Gogo boasted record free cash flow of $32.1m in Q1, a significant jump from the prior year’s $20.0m. The company ended the quarter with a solid cash and cash equivalents position of $152.8m.

Gearing up for their highly anticipated Gogo Galileo launch later this year, the company said it secured a key regulatory win in April 2024. The FCC granted approval for the Gogo Galileo HDX and FDX antenna terminals designed for business aircraft.

Additionally, the company said its Atlas Air Service AG is underway developing the first European Supplemental Type Certification (STC) for the Galileo HDX antenna for the Cessna CJ Series of light jet aircraft and another STC for the Embraer Phenom 300.

“We’re excited about the upcoming launches of Gogo Galileo and Gogo 5G, which will substantially increase our global addressable market and provide our customers with a step-change improvement in speed and performance,” added Thorne. “Additionally, our accelerating conversion of customers from our old Classic products to the AVANCE platform will allow customers to benefit from better LTE performance and provides a simple and cost-effective upgrade path to Galileo and 5G.”

The company also updated on its progress regarding the ongoing share repurchase. In Q1 of 2024, it repurchased 1.1m shares for $10.1m. This buyback activity adds to the over 1.6m shares repurchased in the past two quarters, totalling $15m.

In April 2024, they continued this trend with an additional 1.1m share buyback for $9.3m.

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Embraer executive aviation revenues jump 175% https://www.corporatejetinvestor.com/news/embraer-executive-aviation-revenues-jump-175 https://www.corporatejetinvestor.com/news/embraer-executive-aviation-revenues-jump-175#respond Tue, 07 May 2024 16:54:19 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=150342 Brazilian aerospace manufacturer Embraer posted first quarter 2024 financial results wherein it reported its highest first quarter revenue in eight years at $239.6m compared to $87.1m in the same period last year. Topline growth came on the back of record first quarter executive jet deliveries of 18 jets compared to eight in the same period ... Embraer executive aviation revenues jump 175%

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Brazilian aerospace manufacturer Embraer posted first quarter 2024 financial results wherein it reported its highest first quarter revenue in eight years at $239.6m compared to $87.1m in the same period last year.

Topline growth came on the back of record first quarter executive jet deliveries of 18 jets compared to eight in the same period last year.

The company delivered one Phenom 100 and 10 Phenom 300s, while delivering three Praetor 500s and four Praetor 600s in the first quarter of 2024 – most aircraft it has delivered in the first quarter for eight years. In addition to higher deliveries, the company also boasted its executive aviation backlog by $300m to $4.6bn.

Following from better topline, Embraer’s gross margin from the executive aviation segment improved from -0.5% to 21.4% improving the adjusted EBIT margin from -42.9% to 5.0% during the first quarter under review.

Overall, the company’s consolidated revenue in the first quarter of 2024 clocked in at $896.6m an increase of 25% year-over-year. This strong growth came on the back of strong performance in the executive aviation segment.

On the bottom line, the company reported adjusted net loss of $12.8m against $88.9m in the same period last year.

“We currently have concrete sales campaigns for more than 200 aircraft across the world,” said Francisco Gomes Neto, CEO, Embraer in the earnings call. Neto further reaffirmed the 2024 guidance of 72 to 80 commercial and 125 to 135 executive jet deliveries, with total revenue target of $6-8bn.

Beyond the results, Neto further said the company is focused on its existing portfolio with no plans on developing narrowbody as has been speculated for a while now.

“We are now in our harvest season. We don’t have concrete plans to develop or launch a narrowbody or other aircraft in the next few years,” said Neto in the earnings call.

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Searching for silver linings at the NAFA conference https://www.corporatejetinvestor.com/opinion/searching-for-silver-linings-at-the-nafa-conference https://www.corporatejetinvestor.com/opinion/searching-for-silver-linings-at-the-nafa-conference#respond Tue, 23 Apr 2024 11:28:53 +0000 https://www.corporatejetinvestor.com/?post_type=opinion&p=150144 A silver strike near Quijotoa, Arizona spurred stagecoach driver Richard Starr to pioneer a route through the Tucson Mountains to the mine in the 1880s. Nearly 150 years later, financial specialists hit his trail to JW Marriott Starr Pass hotel to attend the National Aviation Finance Association (NAFA) 52nd Annual Conference. Not silver but sustainable ... Searching for silver linings at the NAFA conference

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A silver strike near Quijotoa, Arizona spurred stagecoach driver Richard Starr to pioneer a route through the Tucson Mountains to the mine in the 1880s. Nearly 150 years later, financial specialists hit his trail to JW Marriott Starr Pass hotel to attend the National Aviation Finance Association (NAFA) 52nd Annual Conference.

Not silver but sustainable business aviation dominated the two-day event at the resort amid the tall saguaro cacti. Prickly topics under discussion included the health of the US economy, particularly the impact of high interest rates, the disillusion of some first-time buyers and business aviation under attack.

But there was more gain than pain when it came to the upbeat assessment of the US economy from Gus Faucher, chief economist, PNC Financial Services Group. Without minimising the impact of high interest rates, which could (but not necessarily will) pitch the US economy into recession, Faucher highlighted positive factors likely to lead to steady growth this year and into 2025.

“The US economy is in very good shape right now,” he said. “The economy is 8% larger than it was before the pandemic. Some 22m jobs were lost due to the pandemic but those have been regained and another 8-9m jobs added to where we were before the pandemic.” Strong labour markets underpin consumer spending power, which was driving broad-based economic growth across the US, he added.

Returning rates to 2%

But there are reasons for pessimism. The “inverted yield curve” – meaning short-term interest rates were higher than long-term interest rates – was often associated with recessions. Faucher estimated the likelihood of a US recession at about 35%. However, he felt confident that the Federal Reserve would be successful in returning rates to its goal of 2% from their current level of just over 5%.

“There is likely to be slower growth this year but still growth,” he summarised. “Spending will continue to support growth in 2024, with the Fed cutting rates later this year for technical reasons [partly to cool wage growth] starting in July and in 2025. That will support growth this year and into 2025.”

Interest rates are affecting the decision to buy aircraft but not in the obvious way of affecting decision-making, said Shawn Dinning, senior partner, Dallas Jet International. “I don’t see a situation where a prospective buyer or borrower is looking at rates and saying, ‘I can’t afford this deal’. We are not seeing a delay in decisions to buy. About 70% of our business lately has been cash.”

But interest rates are affecting the core business of his clients – principals and corporations. “We do a lot of multi-family-type real estate companies and two years ago they were printing money, now they went from a nice positive cash flow position to bleeding hundreds of thousands if not millions of dollars because of interest rates,” said Dinning. In some cases, owners need the liquidity on the airplane. “They have to prioritise, so the airplane gets the axe,” he added.

On a more positive note, he said: “Demand continues to surprise me in a good way and it’s keeping up with this increase in inventory in a pretty good way.”

‘More transactions in Q1’

Wayne Starling, executive director of International Aircraft Dealers Association (IADA) agreed. “There were more transactions in the first quarter of this year than there were in the first quarter of last year,” he said, based on his association’s latest report.

But Johnny Foster, president and CEO, OGARAJETS reported growing frustration and disappointment among first-time buyers. Before the pandemic, almost every year consistently, first-time buyers accounted for about 5% of the purchases of aircraft. But that figure rose to 38% of buyers between 2020 and 2022, he said.

They came into the market, often buying legacy aircraft with the promise of bonus depreciation and excessive demand for charter. “Now we are hearing and seeing these first-time buyers are disenfranchised with the model because their aircraft is not flying 600 or 1,000 hours a year [through charter]. It’s flying 100 hours a year,” he said. “And their pilots’ salaries have tripled over the past three years, and they are now being told they have to have three pilots instead of two pilots.”

These frustrations were compounded by their first main maintenance event, which “has caught many by surprise”. The legacy aircraft that cost only $2m or $3m to buy could be facing inspection costs of half a million dollars, said Foster.

‘Full-scale attack’

From disappointment to hostility. Business aviation is under “full-scale attack” and not just in Europe, warned Ed Bolen, president and CEO, National Business Aviation Association. “There is an effort to find ways to disparage our industry which is not consistent with data and our strategy. We see it in a lot of ways,” he said. Examples include the February 21st announcement by the Internal Revenue Service (IRS) that it intended to step up its aircraft owner audits.

Other examples cited were the five-fold increase in fuel tax over five years and the plan for longer depreciation periods. Combating these and other threats would rely on a coordinated industry response and lobbying policy-maker, he said. Not least via the NBAA’s Climbing.Fast campaign.

Speaking to CJI after his presentation, Bolen set out his goals for the end of the decade. “By 2030, we will be ready to answer the SAF Challenge of 3bn gallons produced in the US,” he said. We would like to see operators continue to look for ways to operate even more sustainably.” That means looking at good quality offset programmes and book-and-claim options. “And we are working hard to introduce advanced air mobility and hybrid solutions and the effectiveness of our air traffic integration.”

Despite challenges facing business aviation – not least high interest rates, supply chain difficulties and the shortage of pilots, airframe and powerplant technicians – the industry can look forward to a bright future as wealth generation and transfer continue to fuel demand, according to speakers.

Stephen Friedrich, chief commercial officer, Embraer summed up the reasons for optimism: “Over the next 20 years, we are going to see a $73trn wealth transfer from Boomers to Generation X and Millennials – and that is only just beginning. This is in addition to [aircraft] purchases by corporate flight departments and private individuals.”

Back in the 19th century the silver boom soon turned to bust, with fire consuming the mining town of Quijotoa in 1889. Attendees at the NAFA conference heard strong reasons to believe in a much more sustainable (and profitable) future for business aviation.

Prickly saguero cacti surrounded the conference venue. Inside, delegates discussed thorny topics such as the impact of high interest rates.

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Embraer grows first quarter deliveries and backlog https://www.corporatejetinvestor.com/news/embraer-grows-first-quarter-deliveries-backlog https://www.corporatejetinvestor.com/news/embraer-grows-first-quarter-deliveries-backlog#respond Mon, 22 Apr 2024 11:56:15 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=150119 Embraer Executive Aviation delivered 18 aircraft in the first quarter of 2024 – up from eight jets in the first three months of 2023. Despite this increase in deliveries it also grew its backlog by $300m to $4.6bn. The manufacturer says it is planning to deliver between 125 and 135 jets in 2024. This would ... Embraer grows first quarter deliveries and backlog

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Embraer Executive Aviation delivered 18 aircraft in the first quarter of 2024 – up from eight jets in the first three months of 2023. Despite this increase in deliveries it also grew its backlog by $300m to $4.6bn.

The manufacturer says it is planning to deliver between 125 and 135 jets in 2024. This would be up by 10 or 20 aircraft on 2023.

The company delivered one Phenom 100 and 10 Phenom 300s in the first quarter of 2024. In the same quarter of 2023 it delivered two Phenom 100s and four Phenom 300s.

READ: Embraer Executive Jet deliveries jump 13% in 2023 

In the first three months of 2024 it delivered three Praetor 500s and four Praetor 600s. The company only delivered two Praetor 600s in the same period of 2023.

This is the most aircraft it has delivered in the first quarter for eight years.

Embraer has traditionally delivered a large proportion of aircraft in the fourth quarter. In the first quarter of 2023 it shipped eight business jets, in the second 30 and the third 28 aircraft. In the last three months of the year it delivered 40% of the year’s total with 49 jets. The manufacturer says it is now working on a Production Levelling Plan to have a stable production pace throughout the year.

The manufacturer shipped 115 executive jets in 2023 – up 13 from 102. This consisted of 63 Phenom 300s, 11 Phenom 100s, 20 Praetor 500s and 21 Praetor 600s.

 

 

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Embraer executive jet deliveries jump 13% in 2023 https://www.corporatejetinvestor.com/news/embraer-executive-jet-deliveries-jump-13-in-2023 https://www.corporatejetinvestor.com/news/embraer-executive-jet-deliveries-jump-13-in-2023#respond Mon, 18 Mar 2024 11:15:42 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=149661 Embraer announced financial results for 2023 wherein it reported 13% year-over-year growth in executive jet deliveries reaching 115 aircraft compared to 102 in 2022. Of the total 115 executive aircraft delivered in the previous year, 74 were light jets whereas the remaining 41 were medium jets. Higher volumes translated into 13%YoY growth in Embraer’s revenues ... Embraer executive jet deliveries jump 13% in 2023

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Embraer announced financial results for 2023 wherein it reported 13% year-over-year growth in executive jet deliveries reaching 115 aircraft compared to 102 in 2022.

Of the total 115 executive aircraft delivered in the previous year, 74 were light jets whereas the remaining 41 were medium jets.

Higher volumes translated into 13%YoY growth in Embraer’s revenues from executive aviation, reaching $1.4bn. However, the segment’s gross margin dropped from 23.4% to 19.4%YoY owing to product mix (proportionally more medium rather than light jets) and one-time tax benefits.

The Brazilian multinational aerospace company said the positive performance comes amidst ongoing supply chain issues impacting the aviation industry. The company also reported a strong backlog for executive jets, exceeding $4.3bn, reflecting sustained demand across its product portfolio. Moreover, the executive aviation segment ended the year with a book-to-bill in excess of 1.3:1. 

Embraer’s Phenom 300 remained the most delivered light jet for the 12th consecutive year and the most delivered twin-jet for the fourth year running. This highlights the continued popularity of this light jet model in the executive aviation market.

The company said that its positive sales momentum to strong customer acceptance in both retail and fleet markets.

Embraer provided a glimpse into the future of its executive jet business with the announcement of the first Praetor 600 delivery to South Korea’s Flight Inspection Services Center. This variant of the Praetor jet is equipped for a wide range of flight inspection tasks, showcasing the adaptability of Embraer’s executive jets beyond traditional passenger transport.

While Embraer’s executive jet business is experiencing a positive trend, supply chain disruptions continue to pose a challenge. The company said that it is working to mitigate these issues and ensure timely deliveries to customers.

Meanwhile, Embraer reported total revenue of $5.3bn for 2023, reflecting a 16% increase year-over-year. Each of the company’s four business units contributed to this growth.

Defense & Security saw the highest increase at 25%, bringing in $516m. Commercial Aviation followed closely with a 20% rise in revenue, totalling $1.85bn. Rounding out the revenue figures, Services & Support achieved $1.42bn, reflecting a 12% growth.

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Embraer Praetor 500: Buyer’s and Investor’s Guide https://www.corporatejetinvestor.com/aircraft/embraer-praetor-500-buyers-investors-guide/ https://www.corporatejetinvestor.com/aircraft/embraer-praetor-500-buyers-investors-guide/#respond Mon, 12 Feb 2024 13:07:50 +0000 https://www.corporatejetinvestor.com/?post_type=aircraft&p=147826 Pros:  Embraer has a reputation for building excellent business aircraft, and the Praetor 500 is no exception. It can hold its own relatively well against super-midsize aircraft – at a midsize jet price point.  Cons: The midsize and super-midsize markets are both crowded – with most major OEMs selling a new aircraft in these size ... Embraer Praetor 500: Buyer’s and Investor’s Guide

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Pros: 

Embraer has a reputation for building excellent business aircraft, and the Praetor 500 is no exception. It can hold its own relatively well against super-midsize aircraft – at a midsize jet price point. 

Cons:

The midsize and super-midsize markets are both crowded – with most major OEMs selling a new aircraft in these size categories – and plenty of highly depreciated, older models to choose from. There is an abundance of choice, with competitor aircraft providing good range and larger cabins.

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Unveiled at NBAA in 2018, the Praetor 500 was launched as the upgraded version of Embraer’s Legacy 450. The Praetor 500 plugs the size gap between Embraer’s Phenom 300 light business jet and its larger Praetor 600 super-midsize aircraft.

The Praetor 500 sits between midsize and super-midsize categories – competing against the likes of the Bombardier Challenger 350, Cessna Citation Longitude and the Gulfstream G280. 

Cabin

The Praetor 500 shares the same fuselage – and therefore cabin size – as its Legacy 450 predecessor. 

The cabin has a flat floor and a cabin height of 6 ft 0 in (1.83m), allowing most passengers to fully stand up when walking around the cabin.

The cabin has a width of 6ft 10 in (2.08m) – which is plenty wide enough for the cabin to feel spacious – but the competing Gulfstream G280 and Bombardier Challenger 350 both offer an additional 4 inches (0.33m) of cabin width over the Praetor 500.

The Praetor 500 has a cabin length of 24 ft 0 in (7.32m) and can seat up to nine passengers – but most Praetor 500’s will be configured to have a standard capacity of seven passengers.  

The interior cabin of an Embraer Praetor 500.

Embraer offer three cabin configurations for the Praetor 500 – that all feature two club seats, two single seats and a belted lavatory seat – but allow owners to choose the configuration for the forward part of the cabin.

Owner’s can choose between fitting the forward section of the cabin with an additional rear-facing single seat (bringing total capacity to eight passengers), with a kitchen area and a side facing seat (bringing total capacity to eight passengers), or with a two place divan (bringing total capacity to nine passengers).

Configuration choice will come down to what the owner’s typical mission profile will be, but owners who typically fly longer missions will likely want to opt for the kitchen with side seat configuration – in order to benefit from the fully equipped wet galley that includes a microwave, oven, refrigerator and coffee brewer. 

The Praetor 500 has a cabin altitude of 5,800 ft at maximum cruise altitude – about half a mile below the altitude of Aspen. The lower the cabin pressure – the more refreshed passengers feel after flying, due to increased amount of oxygen in the cabin. By comparison the Gulfstream G280 has a cabin altitude of 4,800 ft, and the Bombardier Challenger 350 has a cabin altitude of 4,850 ft.

The cabin includes a HEPA filter to further improve cabin air quality. The filter captures 99.97% of all particles, such as bacteria and viruses. Embraer also applies MicroShield360 – a preventative coating system that continuously prevents the growth of microbes on surfaces – to every Praetor 500 cabin.

Flight information and cabin management features can be accessed on the upper panel display, or from personal electronic devices that connect to the aircraft through Honeywell’s Ovation Select system. 

Owners can choose an optional in-flight entertainment system consisting of a high-definition video system, surround sound, and multiple audio and video input options that are compatible with portable electronic devices. 

An Embraer Praetor 500 flies in a cloudy sky.

Flight Performance

Speed

With a maximum operating speed of Mach 0.83 (636 mph / 1,024 kmph) the Praetor 500 is one of the quicker midsize aircraft available – although it is marginally slower than the Gulfstream G280 (Mach 0.85 / 652 mph / 1,050 kmph). 

Range

The Praetor 500 has with a maximum theoretical range of 3,340 nm (3,843 miles / 6,185 km), allowing passengers to fly nonstop between city pairs such as Frankfurt and Dubai, Singapore and Beijing, or between any two points within the contiguous United States. Its range, however, isn’t far enough to be able to reliably make non-stop flights across the Atlantic – particularly if there are strong headwinds.  

The Praetor 500 lacks in range compared to its competitors, with Gulfstream G280 having an 8% greater range (3,600nm / 4,142 miles / 6,667 km). The Cessna Citation Longitude can fly 5% further than the Praetor 500, with a maximum theoretical range of (3,500nm / 4,028 miles / 6,482 km). This additional range can make a huge difference – particularly for transatlantic missions.  Buyer’s looking for an Embraer product with greater range should look at the Praetor 600.

Engines

The Praetor 500 is powered by two Honeywell HTF7500E engines that each generate 7,528lbs of thrust. The engines are derived from the Honeywell HTF7000 family – which has flown over seven million flight hours – and of which different variations are used to power other mid and super-midsize aircraft such as the Gulfstream G280, Bombardier Challenger 350, Cessna Citation Longitude and the slightly larger Embraer Praetor 600.

The HTF7500E engines follow an on-condition maintenance program – meaning the engines remain on the aircraft until an issue arises during a scheduled inspection. On-condition maintenance helps minimise downtime and avoiding unnecessary repairs, although it can be more difficult to budget for maintenance events. 

The aircraft is currently approved to use a blend of up to 50% sustainable aviation fuel (SAF) mixed with conventional jet fuel. 

Airfield Performance

The Praetor 500 has superior airfield performance compared to other midsize and super-midsize aircraft. The aircraft only needs a runway length of 4,222 ft in order to take off at maximum weight- allowing passengers to utilise a wider selection of airports.

Lugano airport, Switzerland, and Santos Dumont airport, Rio De Janeiro, are just two examples of airports that the Praetor 600 is able to safely operate from at maximum takeoff weight – but competitor aircraft can’t. 

Embraer Praetor 500: A buyer's guide.

Flying 

The Praetor 500 is controlled using fly-by-wire technology – essentially a series of computers that process inputs from the pilot, and translates these inputs into movements of the flight control surfaces. Fly-by-wire replaces mechanical linkages from the cockpit to the rest of the aircraft – providing significant weight saving and fuel efficiency benefits, and ensures the aircraft always operates within its safety envelope.

Fly-by-wire is normally fitted on larger aircraft – making the Praetor 500 a standout aircraft given its size and price point.

Pilots control the aircraft via the sidestick control and will benefit from an enhanced vision system with a heads-up display, a synthetic vision system – as well as auto-throttle. 

Buying / Investing 

New aircraft announcements are good news for everyone – except aircraft owners.

However – the launch of the Praetor 500 was good news for existing owners of the Embraer Legacy 450 – as they are able to upgrade and convert their aircraft into a Praetor 500. Changes are made to the fuel system, including reinforcing the wing ribs to hold additional weight and relocating the fuel-measurement system, and new, larger swept winglets are installed. Updates to the cockpit include a new avionics load for the Collins Aerospace Pro Line Fusion flight deck. Conversions will cost Legacy 450 owners c.$500,000.

The Praetor 500 has proved to be a popular aircraft among operators. Flexjet, the fractional aircraft operator, has been offering the aircraft to its customers since 2019, and is converting its existing Legacy 450 aircraft into Praetor 500s. They won’t be the only operator with a significant fleet of Praetor 500s, as NetJets ordered up to 250 of the aircraft in 2023 in a deal worth over $5bn – with deliveries expected to begin in 2025. 

The Praetor 500 falls awkwardly between the midsize and super-midsize categories. The drawback is that it isn’t quite as capable as some of its larger super-midsize competitors – but the advantage the Praetor 500 has is that it is significantly cheaper than some of these competing aircraft. List price for new Praetor 500 is $18.995m, with pre-owned aircraft trading between $17-$18m – which is significantly cheaper than competing aircraft such as the Gulfstream G280 ($24.5m 2022 list price), Bombardier Challenger 350 ($26.7m 2022 list price) and Cessna Citation Longitude ($26m 2022 list price). 

Owning 

Fixed costs – which are payable irrespective of if the aircraft flies, such as hangarage and insurance – will equate to c. $491,000 per year for a Praetor 500.

On top of this, owners will also need to pay variable costs that cover the cost to fly the aircraft, such as fuel, handling and dispatch fees. Variable costs for the Praetor 500 are $3,008 per flight hour.

Based on an assumed usage of 200 flight hours per year, an owner can expect to pay $1.1m annually to operate the aircraft. 

Hard Facts

Flight Performance
Cabin Facts
Airfield Performance
Investing / Owning

Latest News

Embraer delivered 49 business jets in 4Q23, 30 light jets and 19 medium jets.

Full year 2023, Embraer delivered 74 light jets and 41 medium jets.

 

More Embraer guides: 

Praetor 600

Phenom 300E

Phenom 100E

Lineage 1000E

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Luxaviation Adds Praetor 600 to UK Fleet https://www.corporatejetinvestor.com/news/luxaviation-adds-praetor-600-to-uk-fleet-600 https://www.corporatejetinvestor.com/news/luxaviation-adds-praetor-600-to-uk-fleet-600#respond Wed, 06 Dec 2023 15:27:57 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=148031 Luxaviation has added an Embraer Praetor 600 to its UK charter fleet. The aircraft, which has capacity for up to nine passengers and three crew members, will be based at London Biggin Hill Airport. With a range of 4,000 nautical miles, the Praetor 600 will be able to fly from London to New York or ... Luxaviation Adds Praetor 600 to UK Fleet

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Luxaviation has added an Embraer Praetor 600 to its UK charter fleet.

The aircraft, which has capacity for up to nine passengers and three crew members, will be based at London Biggin Hill Airport. With a range of 4,000 nautical miles, the Praetor 600 will be able to fly from London to New York or Dubai nonstop.

“Demand for super-midsize jets has rapidly increased. The Praetor 600 is an exciting addition to our fleet and we are looking forward to showing this technically advanced aircraft off to our charter customers. “Its location makes it the perfect base to deliver quick flight access for clients based in London and the South East,” said George Galanopoulos, CEO, Luxaviation UK.

“We have refurbished the aircraft and passengers can experience seamless onboard Wi-Fi, touchscreen cabin controls and immersive audio and video streaming, promising unrivalled levels of comfort and inflight entertainment. The aircraft’s extensive range means we can fly our clients to mid- and long-haul destinations without the need to refuel. Fully equipped and ultra-quiet, the Praetor 600 is perfect for those looking to work, relax or travel with family and friends.”

Robert Walters, commercial director, London Biggin Hill Airport, said: “We are delighted to welcome the Praetor 600 to our airport, a valuable addition to Luxaviation’s growing fleet. We look forward to supporting the team with a range of bespoke services, to further enhance the exemplary experiences we provide for our passengers, crew and charter customers.”

Embraer unveiled the Praetor 600 at NBAA in 2018 as the significantly improved version of the popular Legacy 500 aircraft. The Praetor 600 is the largest purpose-built business jet that the Brazilian OEM produces.

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Embraer Praetor 600: Buyer’s And Investor’s Guide https://www.corporatejetinvestor.com/aircraft/embraer-praetor-600-buyers-guide/ https://www.corporatejetinvestor.com/aircraft/embraer-praetor-600-buyers-guide/#respond Tue, 05 Dec 2023 21:21:59 +0000 https://www.corporatejetinvestor.com/?post_type=aircraft&p=147730 A buyer’s and investor’s guide to the Embraer Praetor 600 super-midsize business jet.   Pros:  The Praetor 600 pushes the range boundary of the super-midsize category – and it does so at a very competitive price point. Advanced fly-by-wire technology also sets the aircraft apart from the competition.  Cons: The cabin isn’t quite as large ... Embraer Praetor 600: Buyer’s And Investor’s Guide

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A buyer’s and investor’s guide to the Embraer Praetor 600 super-midsize business jet.

 

Pros: 

The Praetor 600 pushes the range boundary of the super-midsize category – and it does so at a very competitive price point. Advanced fly-by-wire technology also sets the aircraft apart from the competition. 

Cons:

The cabin isn’t quite as large as it’s competitors. In a crowded market sector, cabin-obsessed buyers can find a bigger cabin elsewhere. 

More Praetor guides:

Praetor 500

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Embraer unveiled the Praetor 600 at NBAA in 2018 as the significantly improved version of the popular Legacy 500 aircraft. The Praetor 600 is the largest purpose-built business jet that the Brazilian OEM (original equipment manufacturer) makes – sitting in the super-midsize category –  competing with the likes of the Gulfstream G280, Bombardier Challenger 3500, Cessna Citation Longitude and Dassault Falcon 2000LXS.

Praetor 600 Cabin

Cabin Size

The Praetor 600 features a flat floor and a cabin height of 6 ft 0 in (1.83m) – 3 inches lower than Gulfstream’s G280 cabin and 2 inches less than the Dassault Falcon 2000.

The cabin width measures at of 6ft 10 in (2.08m) – which is plenty wide enough for the cabin to feel spacious. Other super-midsize aircraft, however, offer wider cabins. The Falcon 2000LXS boasts an impressive cabin width of 7 ft 8 in (2.34m) – almost an additional metre wider than the Praetor – with the Gulfstream G280 and Bombardier Challenger 3500 offering an additional 4 inches (0.33m) of cabin width over that of the Praetor 600. 

Interior cabin layout of the Embraer Praetor 600 super-midsize business jet.

Interior cabin layout of the Embraer Praetor 600 super-midsize business jet.

Cabin Features

Owners can choose between four cabin configurations in the aft cabin area – ranging from four seats in a club-suite layout, to the most dense configuration that includes two, three-person divans. In this configuration, the Praetor 600 can seat up to 12 passengers, although most Praetor 600 flights will normally only carry up to eight passengers. In every configuration, the front section of the cabin includes four club seats.

For overnight flights, each pair of club seats – which feature leather stitching inspired by the Ipanema Beach boardwalk – can be converted into fully flat berthable beds. Each divan can also be used as a bed.

The cabin features a wet galley that includes all of the necessary equipment – including a conventional oven – to cater from fresh coffee up to a fully prepared meal. 

The Praetor 600 has a cabin altitude of 5,800 ft at maximum cruise altitude – about half a mile below the altitude of Aspen. The lower the cabin pressure – the more refreshed passengers feel after flying, due to increased amount of oxygen in the cabin. By comparison, the Citation Longitude has a cabin altitude of 5,950 ft, with the Gulfstream G280 leading the super-midsize pack with a cabin altitude of 4,800 ft. 

The cabin includes a HEPA filter to further improve cabin air quality. The filter captures 99.97% of all particles, such as bacteria and viruses. Embraer also applies MicroShield360 – a preventative coating system that continuously prevents the growth of microbes on surfaces – to every Praetor 600 cabin.

Flight information and cabin management features can be accessed on the upper panel display, or from personal electronic devices that connect to the aircraft through Honeywell’s Ovation Select system. 

Owners can choose an optional in-flight entertainment system, consisting of a high-definition video system, surround sound, and multiple audio and video input options that are compatible with portable electronic devices. 

With 155 cubic ft of luggage storage – which is fully accessible during flight – the Praetor 600 can hold up to 16 bags.

Cabin Connectivity

Viasat’s Ka-band satellite communication system provides high-capacity, ultra high-speed connectivity for all passengers – with speeds of up to 16Mbps and unlimited streaming.

US operators will also benefit from Gogo’s AVACNE L5 air-to-ground connectivity – essentially providing a 4G connection to the aircraft when flying over the United States.

Praetor 600 Flight Performance

Range

Range sells aircraft, which is a good thing for Embraer.

At 4,018 nm (7,441 km), the Praetor 600 has one of the longest ranges of any super-midsize business jet; with a significantly greater range than the Bombardier Challenger 3500 (3,400 nm / 6,297 km), Cessna Citation Longitude (3,500 nm / 3,482 km) and Gulfstream G280 (3,600 nm / 6,667 km). 

With four passengers and fuel reserves on board, the Praetor 600 can theoretically fly nonstop between London and Dubai, Miami and São Paulo, or Singapore and Sydney. In practice – the maximum range of any aircraft can vary significantly due to headwinds, air traffic control routing and delays – and even the fuel temperature during refueling. Despite this, the Praetor 600 has an impressive range capability, which is a standout characteristic of the aircraft. 

The Embraer Praetor 600 business jet flying through cloud.
Speed

The Praetor 600 has a maximum operating speed of M 0.83 (636 mph / 1,024 kmph), which is marginally slower than the Dassault Falcon 2000LXS and the Gulfstream G280 – by 23 mph (37 kmph) and 16 mph (26 kmph) respectively. 

On a 4,000 nm (7,411 km) mission, the Falcon 2000LXS would arrive just 15 minutes earlier than the Praetor 600 – a time saving that a go-around or a convoluted taxi route to the FBO could quickly erode.

Engines

The Praetor 600 is powered by two Honeywell HTF7500E engines that generate 7,528lbs of thrust each. The engines are derived from the Honeywell HTF7000 family – which has flown over seven million flight hours – and of which different variations are used to power other super-midsize aircraft such as the Gulfstream G280, Bombardier Challenger 350 and the Cessna Citation Longitude. 

The HTF7500E engines follow an on-condition maintenance program – meaning the engines remain on the aircraft until an issue arises during a scheduled inspection. On-condition maintenance helps minimise downtime and avoiding unnecessary repairs, although it can be more difficult to budget for maintenance events. 

The aircraft is currently approved to use a blend of up to 50% sustainable aviation fuel (SAF) mixed with conventional jet fuel – although Embraer have already successfully tested the Praetor 600’s ability to run on 100% SAF.

Airfield Performance

Airfield performance dictates the size of the runway an aircraft needs to safely operate from. Airports with smaller runways are normally much closer to major destinations (think Billy Bishop, Toronto City Airport). Being able to utilise these smaller airports can save a significant amount of time transferring between the aircraft and the passenger’s final destination.

At maximum weight, the Praetor 600 has a takeoff distance of 4,717 ft (1,438 m) – which is about 100 ft (30 m) less than its super-midsize competitors. This means the Praetor 600 is able to fly into popular airports such as Lugano Airport, Switzerland and Nantucket Memorial Airport, Massachusetts – although it currently isn’t certified to operate at London City Airport.

Flying 

The Praetor 600 is controlled using fly-by-wire technology – essentially a series of computers that process inputs from the pilot, and translates these inputs into movements of the flight control surfaces. Fly-by-wire replaces mechanical linkages from the cockpit to the rest of the aircraft – providing significant weight saving and fuel efficiency benefits, and ensures the aircraft always operates within its safety envelope.

Fly-by-wire also benefits passenger comfort. The Praetor 600 features an active turbulence reduction system, that uses the fly-by-wire system to act as a shock absorber in the sky. 

The Praetor 600 is the only super-midsize class aircraft to feature full fly-by-wire technology, which is usually reserved for larger, more expensive aircraft. 

The cockpit of the Embraer Praetor 600.The Praetor 600 is controlled by side-sticks and is equipped with a Rockwell Collins Pro Line Fusion flight deck.

Highlights of the cockpit include predictive wind shear radar capability, Embraer’s Enhanced Vision System (E2VS) with a Head-up Displays (HUD), an Enhanced Video System (EVS) and Synthetic Vision Guidance System (SVGS).

Buying / Investing 

The super-midsize category is a competitive one, with the Bombardier Challenger 350 (and subsequent Challenger 3500) generally regarded as the market leader – especially in terms of deliveries. But all manufacturers have brand loyalists who tend to buy up and down a manufacturer’s product line. Many Gulfstream G280 owners will also own larger Gulfstream jets, for example.

Embraer’s focus has always been on the smaller aircraft sizes, with the Praetor 600 being the largest purpose-built business jet they manufacture. It is very likely that owners of smaller Embraer jets who are looking to upgrade are going to have the Praetor 600 firmly in their sights.

List price for a new Praetor 600 is $24,779,500 USD, according to Conklin & De Decker.

Prices for pre-owned Praetor 600s vary by total flight hours, as well as configuration, but buyer’s should expect to pay between $20m USD and $23m for a pre-owned aircraft.

Oliver Stone, managing director, Colibri Aircraft said, “Its got a lot of the numbers to it, its got a great cabin to it, it’s got the long range. Now you can open things up like London to New York or Dubai to London. That makes a big difference.”

Given its price point and range capabilities, it is no surprise that the Praetor has stolen some of the spotlight away from its competitors. 

Owning 

Operating Costs

According to Guardian Jet, the typical fixed costs for a Praetor 600 is just under $550,000 USD per year. This includes pilots, hangarage, and the necessary insurances. 

On top of this, owners will also need pay variable costs – such as fuel and maintenance. Based on 300 flight hours per year, the annual variable cost is estimated to be $936,900 USD – or $3,123 per flight hour.

Praetor 600 Specifications

 

Cabin Facts

Flight Performance 

Airfield Performance

 

 

Find Out More

Latest News  

Embraer delivered 49 business jets in 4Q23, 30 light jets and 19 medium jets.

Full year 2023, Embraer delivered 74 light jets and 41 medium jets.

On 31st January 2024, Luxaviation UK takes delivery of a Praetor 600 during a ceremony held at London Biggin Hill Airport.

 

More Embraer guides: 

Praetor 500

Phenom 300E

Phenom 100E

Lineage 1000E

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