UK’s Flybe Gets Up to 26 Brazilian Embraer Jets, a US$ 870 Million Deal

Flybe, one of Europe’s leading low-cost airlines, today announced an agreement with Embraer for the purchase of 14 Embraer 195 aircraft and has taken options on an additional 12.

Deliveries are set to begin in August 2006 and continue through to November 2007. The total value of the firm contract at list price is US$ 470 million, with a potential of reaching US$ 870 million if all options are converted.

“The Embraer 195 is ideally suited to meet the needs of our domestic and regionally focused business model. The airplane has seat costs on the sector lengths we fly which are comparable with larger jets, while with 118 seats has a capacity level which suits the thinner UK regional markets we serve.

“In short, the Embraer 195 allows us to deliver our famous low fares to all the regions we serve, and allows us to do it profitably, while at the same time increasing the number of regions we can serve with direct European services,” commented Jim French, Chairman and Managing Director of Flybe.

“The Embraer 195 will replace our BAe 146 fleet, and bring cost and service efficiencies. It completes our fleet rationalization strategy commenced in 2003 and will give us the youngest fleet in the airline sector.

“It also means that the business has addressed the strategic question of how to replace the 146 and provide a ten-year platform for profitable growth,” French continued.

“We chose the Embraer 195 not only for its operational and cost advantage but also for its outstanding environmental performance. Flybe has become a successful major player in European aviation and this deal will pave the way for the company’s continued growth and financial success,” he concluded.

Fitted with single Head-up Guidance System (HGS) and configured to seat 118 passengers, the aircraft is intended be used extensively within Flybe’s existing and expanding network, replacing the airline’s BAe 146s. With numerous bases across Britain, Flybe flies to destinations spread throughout Europe.

“As one of Europe’s leading low-cost airlines, Flybe honors us with its selection of the Embraer 195, the largest member of the new family of Embraer airliners,” said Mauricio Botelho, Embraer President and CEO.

“Flybe’s choice is yet another testament to the capabilities for airlines to right size their fleets with our family of aircraft. The Embraer 195 will combine unparalleled performance and comfort with low seat-kilometer cost. We are proud to be part of the carrier’s continued expansion within the low-cost market.”

Embraer is the world’s leading manufacturer of jet aircraft solutions up to 110 seats.

THE Embraer 170/190 Family

Embraer is currently developing an entirely new family of aircraft specifically designed for the commercial aviation market.

The new product line comprises the Embraer 170, Embraer 175, Embraer 190 and Embraer 195 jets – seating respectively 70, 78, 100 and 108 passengers at a generous 32-inch pitch.

The high degree of commonality among the family of four airliners results in exceptional spare parts and maintenance cost reduction for carriers.

Moreover, cross crew qualification (CCQ) allows better utilization of resources without the restrictions normally associated with mixed-fleet flying.

Each model of the Embraer 170/190 family has two under-wing General Electric engines which are continually monitored by a redundant computerized management system called Full Authority Digital Engine Control (FADEC).

This system optimizes engine operation during all phases of the flight and, in turn, reduces fuel consumption and maintenance costs.

Another important feature of the Embraer 170/190 program is the use of fly-by-wire technology for the flight control systems, similar to that which is deployed on advanced military aircraft and larger commercial jets.

Each member of the Embraer 170/190 family has two main passenger doors and two service doors that minimize aircraft turn-around time. All four aircraft can be configured for single class or dual class seating.

Another strength of the Embraer 170/190 family is the comfort provided by the double-bubble fuselage design.

Unlike other aircraft of similar seating capacities, this design offers much more personal space for passengers, particularly at elbow and shoulder level.

Seats and aisles are the widest among airliners of their respective aircraft capacity categories.

Embraer expects its new commercial jet family to win a significant share of the still untapped market for aircraft in the 70- to 110-seat range – mainly due to their performance, cabin comfort and reduced operating costs.

According to the Brazilian company, all four jets are designed to meet or exceed the demanding noise and emission-related requirements established by the International Civil Aviation Organization (ICAO).

The Embraer 170 received type certification in February 2004. The Embraer 175’s certification was awarded in the fourth quarter of 2004.

The Embraer 190 made its first flight in March 2004 and its certification is scheduled for the third quarter of 2005.

The Embraer 195’s first flight was in December 2004 and conclusion of its certification campaign is expected in the second quarter of 2006.

About Flybe

Flybe’s Position in the Market

* Flybe is the UK and Europe’s third largest low-cost airline (Credit Suisse First Boston Report, July 2004)

* Flybe is the UK’s leading non-London-centric airline, offering 91 routes from 40 airports in seven countries

* 83% of Flybe’s flights are UK domestic compared to 22% Easyjet and 7% Ryanair

* Flybe has transformed itself from a loss-making regional carrier to a dynamic, fast-growing and profitable new generation low-cost airline

* In November ’04, Flybe reported half yearly profits of #14 million, in addition to a 24% overall growth in passenger traffic and a 34% overall increase in passenger revenue.

Passenger Figures and Bookings

* Flybe will carry 5.5 million passengers network wide, generating revenues of euro 300 million in Flybe’s financial year (05/06)

* Internet bookings ( are over 80%.

Flybe Facts

* Flybe’s average stage length 300 miles

* Flybe’s average aircraft size is 85 seats

* 39 aircraft in the Flybe fleet

* Flybe serves 91 routes, 40 airports and spans 7 countries

* Flybe has 1650 employees (1130 airline, 520 maintenance)

* The airline has accomplished 25 years of continuous operation

Route network

* Flybe is the single largest airline at Birmingham International airport with 2.1 million seats on sale

* Flybe has the largest domestic network from Northern Ireland with 1.95 million seats on sale

* Flybe is the largest carrier out of Southampton with 2.2 million seats on sale

* Flybe is growing its presence rapidly in the vibrant South West market from Exeter and Bristol offering 1.28 million seats in the market

Embraer, Empresa Brasileira de Aeronautica S.A. –





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