Since Embraer was founded back in 1969, the company has been able to produce over 8,000 aircraft ranging from small persona aircraft all the way towards small regional airliner jets. Embraer a global aerospace Company who’s headquarters are in Brazil has recently celebrated in 50th Anniversary with business in commercial and Executive aviation.
Embraer has worked hard to make their name known as one of the world’s leading executive jet manufacturers having entered the market back in the year 2000 with their Line of Legacy Jets.
They have grown their product line dramatically over the last years and have focused a majority of their funds towards providing services and and supporting customers after the initial sale. This is showing to be a strong point in their branding platform as it shows they are driven towards excellence in their service of providing to the customers specific needs and being able to help along the way of the journey.
On Average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world. Embraer announced the delivery of its first Praetor 600. The Super-Midsized Business Wet which was sold to a customers in Europe who wishes to remained anonymous.
Their main production facility is located in Sao Jose, Brazil where they used the same manufacturing facility that is used to create the Legacy 450 and the Legacy 500. By being able to modify they systems they already have in place they are able to save a lot of costs in the process.
The overall outlook for the Praetor 600 is certainly to make an impact in the current aviation market that exist today. Embraer is working to disrupt the current environment of the market by creating a product that truly liberates their owner from previous constraints that may have been present.
The New Praetor 600 offers incredible range of over 4,018 Nautical Miles with the highest payload capacity available in its weight class. If you are looking for speed then one can be able to reach a distance of 7,719 NM when traveling at a gripping speed of Mach 0.80. This makes having the ability to fly nonstop between London and New York entirely feasible with four passengers and maintaining the NBAA IFR Reserves.
The Mechanics at Play
The main objective of this aircraft was to introduce technology into the market that will set the standard for what will come in the future with private aviation. The design and manufacturing details put into the small areas that would other wise go unnoticed make dramatic impact onboard the Praetor 600. Certain features from the layout and functionality of the cockpit to the arrangement of seats are made to fit to the individuals. They are design with the person in mind aimed to make a more comfortable experience.
One of the greatest areas of opportunity when it comes to enhancing the experience of an aircraft to a customer is by improving the quality of flight. Embraer has aimed to accomplish this by incorporating a full Fly-by-wire system in their aircraft. This makes the Praetor 600 the first Super-Midsized jet to be fully covered by this kind of system. Now for those unaware of what this means let me explain how this technology not only can make your plane right much more enjoyable but can also reduce the risk of potential human error.
Traditional Mechanical systems in aircraft use a combination of lever and pulleys connecting the exterior aircraft surfaces to the input hardware in the cockpit. For example if you were flying aircraft with a primarily mechanical system moving the aielorons or the rudders would involve a great deal of force are you are physically moving the pieces that are pushing or pulling the flying surfaces that you wish you adjust. Hence if there is heavy winds pushing in the opposite direction that which you are wishing to move it towards this will require you to use a great deal of force to achieve the desired result.
As the pilot is physically working towards moving the wing surfaces there is a great deal of resistance being applied from the physics in play. This can be difficult to combat which can potentially bring fatigue to the pilot in the event they are faced with a great deal of turbulence.
The introduction of a Fly-by-wire system solves a majority of the problems at hand bringing the passenger a smoother flying experience and the pilot greater sense of control and energy levels. A Fly-by-wire system uses a combination of motors and computers which communicate between each other to be able to adjust flying surface areas accordingly by using command inputs from the cockpit.
Overall this means that now there are individual motors and computer systems placed into the ailerons, rudders, trim tab, and elevators to reduce the physical workload of the pilot in command. Now with the new system in place one is able to have the equivalence of power steering in a street car but for their aircraft but for their plane. The Fly-by-wire create a smooth and safe flight for all in the cabin as it is constantly
Let’s just all go ahead and agree that those who choose to fly in these aircraft have a certain desire for a specific kind of lifestyle that caters to their own specific desires. We have gone over some of the technology that this aircraft has that allows it to provide the ultimate flying experience for its guests. Lets go over some of the more present features present within the cabin. For starters the cabin’s ceiling of 6 feet allows for one to be able to walk around with much ease and comfort.
The DNA Design cabin includes an arrangement of 8 fully reclining club seats which can be readjusted into 4 sleeping arrangements. Upon entering the aircraft you find yourself at the service galley fully equipped for guest. Near the rear of the aircraft cabin the lavatory is located near the door that is used for in-flight access to the baggage area. Certainly for those looking to do some extra shopping of their trip the Embraer Praetor 600 offers some of the largest Baggage space for its aircraft size category.
For guest on board to be able to gain some more details on their flight they have installed an industry Exclusive Upper Tech panel which provides the most current flight details. Here one can access weather information and manage in cabin features. An array of certain amenities can be made available on board such as high speed Wi-Fi and even enhanced in-flight entertainment systems such as surround sound and additional televisions. One can enjoy all the comforts of their movies, sports games and music with no interruptions.
The overall layout and design is all customizable and can be designed to your own style. Should you be interested in getting more information regarding the price or available of this aircraft my contact info can be found below. I would love to be able to take the time and figure out if this aircraft is going to be a proper fit for your needs.
Certainly there are many factors at play and often times there is so much to take into consideration coming to a decision on your own can be very difficult. This is why I offer my services to be able to share with your my experience and knowledge in the industry to ensure that you are making the aircraft decisions that are going to be right for you.
The Market Outlook
When it comes to the Aircraft Manufacturing companies one of the most notable fundamental factors that drive price is the filled and pending orders of new aircraft. This is the primary form on producing income for these businesses and this is a key way that many investors determine if it is an appropriate time to enter into the market or not.
Overall purchase of aircraft globally is a great metric to determine overall outlook towards the future as it determines growth of the middle class commuting between cities which helps economies grow nationally. Just recently we had the Paris Air Show which is a great opportunity for businesses to come out and network with one another and place new orders on aircraft or even announce placed orders to help promote future sales and outlook of the industry.
This year the Paris Air show was incredible pivotal with the conflict and issues with ongoing with Boeing. Airbus has had incredible success overall in the show and has shown to have obtained several new orders. Which brings me back to include the great news that Embraer had to share which at the event.
They announced the intention of KLM to purchase up to 35 brand new E195-E2 jets. Earlier last month United Airlines signed a contract for 39 E175’s. Now with the first Praetor 600 in the sky we can only wait to see more orders coming in. The market will be quite for now as the aircraft is brand new and many investors in the industry have been making more purchases in the use aircraft market than ever before. Seeing how the market reacts to this new aircraft will be a major key to demonstrating how the sale of new Super-Midsize Business jet lies.
Using fundamental analysis I really like how this stock looks. They are young and staying innovative with their technology and looking to stay ahead with other large players like Gulfstream and Cessna. They have shown weak history in terms of sales and free cash flow in the company which can deter many investors. This is where they will need to begin to show more growth on a quarterly basis if they expect to see greater attention from investors.
None the less the stock is greatly undervalued currently as the market for new aircraft is expected to be over 10,000 over the course of the next 20 years. They are working hard as a company to place themselves in line to be able to fulfil a great portion of the markets demand in the years to come. This leaves incredible opportunity to grow. With manufacturing facilities in brazil and in the U.S. this ensures that business is able to maintain consistent.
From the technical standpoint ERJ is currently trading at just about $20 as I write this article. We are seeing overall strength in buying sentiment with volume to support the move. Back in late May we saw price hit a low of $17 a share. Since then price has been in an up trend with the occasional correction in the market roughly about once a week.
We have seen the last 4 days price move to higher highs and push past the previous resistance level of $20. Many investors are looking towards the $25 range as it held the major support zone from 2018 and for price to come back towards that range would support the strong outlook for their production.
Moving forward keep Embraer (ERJ) on the watchlist as it has strong fundamental strength developing that will transition with technical to follow. Overall if you are looking to invest in any stocks, options trades or forex please do keep in mind you are your investing at your own risk. I am not telling you to go and open a new account today and start trading ERJ right away. I am simply educating you on certain events that are taking place that could potentially have an affect on the price of this stock.
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