At Sunday night's Embraer press dinner, Mauricio Botelho, the
firm's chairman and CEO, announced that type certification of
the Embraer 170 has been delayed until November 2003 because
of software integration problems.
Honeywell's Primus Epic is centerpiece of the 170's avionics suite
and the airplane embraces an unprecedented degree of avionics
and systems integration. Epic's digital engine operating system
software, however, must be linked to other system software on
the aircraft, such as FADECs and computerized system controls.
"We've had good news [regarding recent sales of the 170 and
190], but now we have to face reality," Botelho said. "The
development process was supposed to have led to [Brazilian] CTA
certification in June or July. JAR 25 certification was due in
late July. More time now is required for certification because
of software," he explained. "Of course, we're not happy
about that and we'll have to reposition ourselves for deliveries,"
he added.
The Embraer170 delay will enable the manufacturer to finish work
prior to customer deliveries on some software functions that had
been slated for post-certification development.
The projected third quarter 2004 certification date for the Embraer
175, which completed its first flight on June 14, remains unchanged,
and Embraer 190 deliveries to launch customer USAirways are on
track for third quarter 2005. The 195 will be certificated in
third quarter 2006, according to the current plan.
When asked about late certification penalty clauses between Embraer
and Honeywell, Botelho said, "I absolutely won't comment.
It's a private matter between us." He also was mum on fines
associated with late deliveries to airlines and leasing companies.
Embraer has 234 orders and 289 options for the 170/190 family
of aircraft. Alitalia, Air Caraibes, leasing firm GECAS, jetBlue,
LOT, USAirways and Swiss are among its customers. Notably, GECAS
has found homes for 49 of the 50 orders it placed with Embraer,
including 15 aircraft with USAirways. Eight-five of the remaining
ERJ190 orders from USAirways are new.
"We keep our confidence for the future. We have even bigger
opportunities after 2004 because we have the best family of aircraft
for our market," Botelho said.
Embraer had planned to deliver 132 aircraft of all models in 2003,
but that's been revised down to 110 units, according to Botelho.
In 2004 deliveries are expected to increase to 160 airplanes,
up from the previous estimate of 136 units.
