Posted on 09/11/2011 8:02:23 PM PDT by AfricanChristian
Kenya Airways on Tuesday morning signed a purchase agreement that will see the national carrier buy up to 26 jets from Brazilian firm Embraer in a deal that aligns the airline’s expansion plan and threatens the dominance of US aircraft maker Boeing.
The national carrier has been aggressively moving into new markets, especially in Africa, a move that has put a strain on its fleet, which stood at 31 in March.
An Embraer spokesperson on Monday said the deal will include the supply of 10 jets and the rights for KQ to purchase an additional 16 whose delivery is expected from the second half of next year.
“The deal also includes purchase rights for 16 aircraft, which could be either the Embraer 190 or other models of the E-Jet family,” Ghislain Bouman, the firm’s press officer for Europe, Middle East and Africa said in an interview with the Business Daily.
KQ’s decision to buy Brazilian jets, which are mainly used in domestic and short regional routes, is set to shift the balance of power in the sale of planes in Kenya that has remained in the hands of Boeing.
It is also a blow to European Airbus whom Kenya Airways has been mulling to offer contracts following delays by Boeing to deliver planes agreed on in 2006.
Of the 31 planes KQ is operating, 25 are Boeing and six from Embraer, up from three held two years ago.
(Excerpt) Read more at businessdailyafrica.com ...
Build a factory in a right to work state and Obama will make sure that business goes to your competition...
Jes sayin’....
About 70% of the content of Embraer jets are US components. Even when they beat Boeing there is an upside.
That is something that both Boeing and Airbus will have to consider much more now than they did back in the 1990’s when they were sitting on top of the world. Bombardier, Embraer, China and Russia are all fighting to take away market share. Now the percentages are still small, and airplane orders and projected build rates are looking very sweet for both Boeing and Airbus, but still those large airplane orders from former customers can’t be ignored. Cost and potential union strikes are one huge factor thanks to the IAM machinist union. The other issue is how fast can you get your airplanes. Even at 32 737s a month going up to 35 in November, then later to 38, the Boeing backlog is so huge, that they may not find an empty slot to stick your first airplanes until maybe 2014. Airlines are not looking that far out. They see a need far sooner – and these smaller companies can fill that need.
Totally makes sense for Kenya!
Short routes; limited passengers. If the country is able to grow, maybe there’s a Boeing or AirBus in their future.
Now, can some Kenyon make a duct-tape insignia for the side of one of their old aircraft as - AF 1-, to fly Mouchelle and Barry back home to their roots! Tomorrow???
I was just thinking, “In exactly what application do the product lines of Embraer and Canadair overlap with those of Boeing and Airbus?”
If Boeing still produced the DC9/Super80/717 in its smallest variant, I could see them trying to compete on certain regional jet orders, maybe.
But Being and Airbus seem to have simply ceded that market, mainly to the Canadians and Brazilians.
Boeing should think about making an offer to one of those companies, if the inevitable national politics would allow it.
Kenya Air has orders in with Boeing for nine 787s and options for four more. This is a regional jet order. Which contract do you think Boeing is more interested in?
Funny, I didn’t know Embraer was a direct competitor of Boeing. Embraer builds small regional jets, quite a bit smaller than the smallest Boeing jet, the 737-600 (that I don’t even think they have sold one in a decade). This wasn’t a loss for Boeing or Airbus as they don’t have products in that market.
The “Regional Jet” Market in Africa is dominated by 737s (usually second-hand jets), but with some new jets. The flight time between, say Lagos and Accra is about 1 hour and passenger volumes do not always justify the size of a 737, so an Embraer is a better fit (it is also cheaper to run).
Agreed completely. My point is that this article paints this as some tremendous loss for Boeing when Boeing wasn’t in the game for that part of the market. My beef isn’t with Kenya, it’s with the author of the article.
That was then. The biggest Embraer jets are now nuzzling Boeing territory. The article mentions the Embraer 190, that's 114 densepaxt (the Boeing 737-600 is 130 pax). And Embraer have a 195(122pax) available. Both considerably cheaper to buy and run than the Boeing.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.