Buying an Executive Jet, Simplified

BizAvIndia (BAI): Does Embraer enable leasing of an aircraft built by Embraer?

Claudio Camelier (Camelier): Embraer Executive Jets itself does not lease aircraft, as our business is to sell to charter companies, private individuals and corporations, worldwide. Usually, Embraer supports the buyers on structuring financing or leasing solutions, but these are always provided by financial institutions or banks, not Embraer.

BAI: What can be the minimum possible figure that will be the upfront money for purchase of a Phenom 300 or Legacy 500?

Camelier: Embraer does not disclose this information.

BAI: What is the maximum time line for a lease arrangement?

Camelier: Lease arrangements can vary widely, depending on the lessor and the lessee involved. Usually Embraer supports the buyers on structuring financing or leasing solutions, but these are always provided by financial institutions or banks, not Embraer.

Phenom 300: Standard for light jets

BAI: Is it possible to get an idea of maintenance cost involved for a Phenom 300 or Legacy 500?

Camelier: ‘Maintenance cost’ is a very broad term, there are various types of maintenance and the cost associated with it also varies. As a reference, however, we can use the aircraft estimated DOC (direct operating costs) numbers, published by Conklin & de Decker. According to the publication, the all new midsize jet Legacy 500 has a DOC of $3,053.61 and the Phenom 300 has a DOC of $1,837.57. Actually the Phenom 300 has a very attractive cost of operation and therefore it is one of the reasons that made this aircraft the most delivered business jet in the world in 2013 and 2014.

It is important to say that the DOC is made up of factors such as fuel, maintenance, labour, parts for engine and avionics and airframe, engine restoration, APU allowance, landing and parking, etc.

Actually the Phenom 300 has a very attractive cost of operation, therefore it is one of the reasons that made this aircraft the most delivered business jet in the world in 2013 and 2014.

BAI: What is the maximum number of hours an aircraft should fly a day as per Embraer as you are one of the most established manufacturers in the world?

Camelier: Embraer’s line of business jets are designed to meet every customer’s requirement, whether long or short haul, high or low utilisation. Our aircraft are designed to ensure minimum grounding time for maintenance, being readily available to owners and operators.

BAI: What about return on investment for the person who has bought an aircraft?

Camelier: At Embraer we know time is money and business jets are great productivity tools. Of course, it will depend on the owner’s business model, but the more a business grows its footprint, the more their management may need faster travel solutions, which will enable them a comfortable and productive transportation.

BAI: You had indicated that the ideal age of aircraft in terms of its appearance, interiors/seats and other elements would be six to seven years. Is there a decline in the quality of its appearance?

Camelier: In reality, what I mentioned was that typically a new aircraft owner will keep his aircraft for up to six or seven years before he moves into a new airplane, but of course these numbers vary from customer to customer. The upkeep of the aircraft is the owner’s responsibility – if it is well kept it will look as good as new. This is a multimillion-dollar asset and Embraer Executive Jets equips it with quality fittings and systems, and with our leading support and services the airplanes can be operated in good conditions for 30 years or more.

BAI: Does the full return (with some money on top) on investment come back within six years?

Camelier: It really depends on the owner’s business model, as well as what the aircraft has been or will be used for.

BAI: What assistance can a new owner expect to get from Embraer, in terms of pilot, crew, and other modalities?

Camelier: More than just sales, we care about how our customers maintain and operate their aircraft. First, we work with the customer to ensure that all the necessary paperwork is in place for them to operate their business jet(s). We also have an impeccable after sales support that has earned us a #1 ranking in the AIN customer support survey. During the purchase negotiation and support period, we foresee the key areas where the customer needs support and render the necessary help.