Embraer E-Jets E2: A Program Review

Embraer's re-engined E2 aircraft should prove very successful, given the well-established E-Jet customer base, its strong operating economics, and improved performance. We expect Embraer and Mitsubishi to lead the market for regional jets under 100 seats, with the E-175 E2 continuing the popularity of the existing E-175 in North America and other markets. The E2 program has seen orders grow twice as fast as the E-Jets, and tellingly, twice as fast as its direct competition. The E2 program has 272 firm orders and 670 commitments.In the 100-150 seats market, Embraer and Bombardier will lead the market, as their E-190 E2, E-195 E2, CS100 and CS300 aircraft are more efficient than "shrink" models including the Airbus A319neo and Boeing 737 MAX 7. With a leadership position in both segments of the 70 to 130 seats market, Embraer is well positioned to capture a strong share of both regional and mainline airline growth.