Brazilian aircraft manufacturer Embraer reports that its firm order backlog for the Commercial Aviation, Executive Aviation, and Defense and Government segments increased by US$ 1.6 billion during the third quarter of 2007, totaling a record US$ 17.2 billion.
Embraer has achieved its expected aircraft production for the third quarter by delivering 38 jets to the Commercial Aviation segment, nine Legacy 600 aircraft to the Executive Aviation segment and one EMB 120 Brasilia to the Defense and Government segment for the government of Angola.
Embraer announced that it expects to deliver between 165 and 170 jets in 2007.
During the third quarter the company signed a contract for the sale of 20 E-Jets to the Air France/KLM group in Europe. Embraer also recorded the sale of 20 Embraer 195 aircraft to BRA Transportes Aéreos, the first Brazilian airline to order Embraer 170/190 family jets.
The Phenom family, according to the airplane maker, continues to record solid results with more than 500 firm contracts signed, and reached an important milestone in the development of the Phenom 100 program, with the first flight of the prototype aircraft on July 26.
In the third quarter, Embraer also delivered the 1000th aircraft of the ERJ 145 family through its joint venture in China to Grand China Express, an airline of the HNA Group that ordered 50 aircraft of this model.
Meanwhile, Brazil's flagship airline TAM announced it has increased its international market share to 69.8% in September as well as recording growth in occupancy rate for national and international flights.
According to ANAC, the Brazilian airport authority, TAM registered 0.3% growth in domestic RPK (Revenue Passenger per Km – demand) compared to the same period last year, and 11.0% increase in domestic ASK (Available Seat per km – supply).
In June, market demand increased 6.7% and market supply increased 20.2%. TAM registered a domestic market share of 48.1%, a 3.0 p.p. decrease compared to the same period in 2006. TAM's domestic load factor was 66.1%, 1.9 p.p. higher than the market average 64.2%.
In the international market, TAM registered 62.7% growth in RPK and 76.2% in ASK, compared to September 2006. The company attained market share of 69.8%, representing 9.8 p.p. growth year on year. TAM attained 71.0% load factor, 5.4 p.p. higher than the market average of 65.6%.
TAM has been the leader in the Brazilian domestic market for more than three years, and held a 48.1% domestic market share and 69.8% international market share at the end of September 2007.
TAM operates regular flights to 47 destinations throughout Brazil. It serves 81 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world.