LONDON: Big wins for both Bombardier Inc. and Embraer SA have heated up the battle in the regional-jet market, as North America’s largest airlines dole out big fleet renewal orders after a long hiatus.
In a market that is a virtual duopoly, the short-hop, narrow-body jets manufactured by Brazil’s Embraer have outsold those from Canada’s Bombardier for at least eight years.
But signs of newfound sales aggression from Bombardier, and its desire not to lose ground in its traditional North American stronghold, could mean a fierce campaign for orders expected from US No. 1 carrier United Airlines and smaller rival US Airways.
“That will be the next big horse race out there,” said Brian Foley, who runs his own aviation research firm in Sparta, New Jersey. “I’m sure both Embraer and Bombardier are in some preliminary discussions, and we could see that being the next news item, this year even.”
Bombardier was off to a strong start in December with an order worth up to $ 3.29 billion from Delta Air Lines. But Embraer’s win on Thursday of a deal worth up to $ 4 billion to supply the regional network of AMR Corp’s American Airlines puts it neck-and-neck in the US contest.
With production levels hinging on new orders, fresh momentum for Bombardier could unseat Embraer as the world’s No. 3 supplier to commercial airlines, after Boeing Co. and Airbus.
Embraer’s head of commercial aviation, Paulo Cesar de Souza e Silva, said on Thursday the surge in demand by US carriers was just beginning. American’s regional-jet needs were not satisfied by the Embraer order.
Aerospace analyst Scott Hamilton of Leeham Co. said Bombardier stood a good chance in the next round of orders from American for planes that ferry up to 120 passengers from smaller airports to bigger hubs.
“This is not an exclusive deal for Embraer. American Eagle has such a large mixed fleet of Embraers and Bombardiers that I still view this as an opportunity for Bombardier.”
The fight for orders will be ferocious, as both planemakers are hungry to expand their skinny regional-jet order books, hurt by years of slow growth and airlines’ shift to bigger planes.
The biggest US airlines have been the major holdouts against the trend to larger regional jets. Labor agreements long defined regional fleets as planes under 50 seats, a clause that restricted carriers to smaller airplanes as mainline pilots resisted the outsourcing of more flying to cheaper partner operations.
The loosening of those clauses in new labor contracts because of airline bankruptcies and mergers is expected to prompt a string of deals to overhaul the US regional jet fleet. There could be demand for between 250 and 400 planes in the next 18 months, Embraer’s Silva says.
Industry sources say Bombardier has started linking its sales pitch to an offer to help airlines re-sell their older Bombardier planes as they upgrade their fleets, a newly aggressive approach that they say was a key factor in winning the Delta order.
Bombardier would not reveal details of the deal, but a spokesman said it has helped other airlines find “new homes” for CRJs, or Canadair Regional Jets, in such growth markets as Russia and Africa.
The stronger sales pitch would come just as the Montreal-based company needs cash to fund expensive development programs, particularly for its $ 3.4 billion, 110- to 149-seater C-Series. Bombardier sees its biggest jet yet as central to future growth.
As aggressive as the current bidding may be, Embraer and Bombardier may soon look back fondly on their two-way contests.
Up-and-coming rivals include Japan’s Mitsubishi Heavy Industries, Russia’s Sukhoi and even China’s COMAC, threatening to drive down prices in coming years.
Bombardier virtually invented the regional-jet segment when its CRJ100 entered service in 1992. Embraer broke into the space with its ERJ145 in 1996.
In 2001, Bombardier began offering stretched versions of its regional jets with 70 to 90 seats. Embraer quickly raised the stakes with a new design, including expanded headroom and cargo space, for its E-Jet family seating 70 to 120 passengers.
E-Jets have outsold CRJs since they were introduced eight years ago. By 2012, Embraer controlled just over 50 percent of the regional aircraft market, including turboprop planes, according to the Teal Group aerospace consultancy.
Bombardier’s market share fell below 30 percent, from 72 percent in 2003.
Embraer’s 2011 announcement of a planned overhaul of its E-Jets will put more pressure on Bombardier, eroding the efficiency advantages it touts for the CRJ, which is unlikely to see another engine upgrade, according to analysts.
Airlines are often hesitant to switch fleets from one supplier to another, since additional training and maintenance costs can outweigh savings on the purchase.
Delta and US Airways and their regional flying partners operate more Bombardier CRJs. American and United and their partners use more Embraer jets.
Philippe Poutissou, vice-president of commercial aircraft at Bombardier, cautions against looking at blanket figures and says a better measure of who’s on top is to consider where the demand is.
“If you look at the US market overall at the 70- to 90-seat category, which is where the opportunity lies, the CRJ has outsold the E-Jet two to one, if you are specifically looking at the CRJ700 and CRJ900,” he said in a recent interview.
But for Richard Aboulafia, a senior analyst with the Fairfax, Virginia-based Teal Group, Bombardier has a narrow window for selling more ambitiously before the re-engined E-Jet and Mitsubishi’s new jet take off.
“They need to work hard to keep the Delta order from being a dead-cat bounce,” Aboulafia said.
Bombardier, Embraer battle for bronze in commercial jet market
Bombardier, Embraer battle for bronze in commercial jet market
Poland expects trade with Saudi Arabia to grow to $10 billion, finance and economy minister tells Arab News
- Andrzej Domanski says his country’s companies are looking for reliable partners like Saudi Arabia
- Highlights opportunities in clean energy, ICT, food security and construction cooperation on Riyadh visit
RIYADH: Saudi Arabia’s pace of transformation, its economic ambition under Vision 2030, and its role as Poland’s biggest Middle Eastern trading partner are driving a new phase in bilateral relations, Andrzej Domanski, Poland’s finance and economy minister, has said.
Speaking to Arab News during a visit to Riyadh on Monday, Domanski discussed how the two nations might expand their trade ties, the sectors where Polish businesses enjoy an edge, and the potential for broadening the bilateral relationship.
“We have better and better economic relations with the Kingdom of Saudi Arabia. We will reach $10 billion in our trade,” Domanski said, describing Saudi Arabia as a “reliable partner” at a time when Polish companies are actively seeking diversification and new markets.
His visit comes as Saudi-Polish economic ties deepen beyond a historically oil-focused relationship into a broader partnership spanning energy transition, technology, construction, food security and potentially defense cooperation.
This evolution mirrors Saudi Arabia’s Vision 2030 diversification drive and Poland’s emergence as one of Europe’s fastest-growing large economies.
Domanski said Riyadh itself offered a powerful visual symbol of Saudi Arabia’s economic momentum.
“I must say that it’s my first visit to Riyadh and I’m really impressed,” he said. “I’m impressed by the pace of development. The thousands of cranes in the city. It is also a proof of how quickly Saudi Arabia is developing.”
Bilateral trade between Saudi Arabia and Poland has expanded rapidly in recent years, driven largely by energy flows. Saudi Arabia is now Poland’s main crude-oil supplier, accounting for roughly 60 percent of Poland’s oil imports.
Trade volumes have risen from about $7 billion in 2022 to around $8.5 billion in 2023, with Domanski predicting the $10 billion mark will soon be reached.
“We are, of course, importing crude oil. But we’d like to together search for new business opportunities for both Saudi and, of course, Polish companies,” he said.
Domanski argued that growth prospects make the country an attractive destination for Saudi investment.
“On our side, we are also doing pretty well. We are the fastest growing large European economy,” he said. “This year we will work in the G20 format. This is because last year we joined the Group of the 20 biggest economies in the world. And we are frankly proud of that.”
Inflation, he added, has fallen sharply. “Inflation went down significantly, 2.5 percent. Very reasonable. A reasonable level. Investment started to pick up,” he said, pitching Poland as a stable European base for Saudi capital.
A recurring theme of Domanski’s visit was the alignment between Poland’s development priorities and Saudi Arabia’s Vision 2030 agenda.
“Our companies, our economy, are fully aligned with the ambitious Vision 2030 that is realized here,” he said.
Energy cooperation remains central, anchored by Saudi Aramco’s stake in the Lotos refinery in Gdansk — the largest Saudi direct investment in Poland — which underpins long-term crude-supply contracts and Poland’s energy-security strategy.
But Domanski stressed that the future lies increasingly in clean energy.
“It’s worth noting that right now Poland is building onshore capabilities, offshore capabilities, solar capabilities. And we are constructing the first Polish nuclear power plant,” he said.
“We want to diversify from coal into nuclear and renewables. And I believe that our Saudi partners could participate in this clean energy transformation of the Polish economy.”
The shift reflects broader cooperation under way between Warsaw and Riyadh on green energy and hydrogen, dovetailing Poland’s decarbonization plans with Saudi Arabia’s push to develop non-oil sectors.
Technology and digital services emerged as one of the most promising areas for expansion, with Poland positioning itself as a provider of high-end IT talent for Saudi Arabia’s digital and AI-driven projects.
“ICT solutions. We have really great companies that provide the best solutions. They are already well recognized in Western European countries. They have their footprint here in Riyadh,” Domanski said.
“Having said that, they still lack scale. So my visit here is also to discuss that kind of business opportunity.”
Polish officials frequently point to the country’s deep pool of programmers and cybersecurity specialists. Warsaw has signaled plans for dozens of Polish firms to establish regional headquarters in Saudi Arabia, particularly in AI, cybersecurity and digital infrastructure.
Domanski underscored Poland’s strengths in specific niches.
“I believe that we are really top class,” he said. “For example, in cybersecurity, we really have companies that are providing the best solutions for smart cities in Western Europe.
“But, I believe there is lots of room for strengthening this presence and the cooperation with Saudi partners.”
Food security is another area where Poland sees scope for joint ventures and long-term cooperation. “We are quite an important food producer,” Domanski said. “We have knowhow. We have land. We have a growing sector.
“And I believe that, for example, through joint ventures with our Saudi partners, we could establish a long lasting cooperation in this sector.”
The construction sector also featured prominently, reflecting the scale and pace of development under way across the Kingdom.
“We have lots of contractors that proved to be very efficient and contractors that keep timelines and realize how it is important to deliver on time,” Domanski said.
“And I believe that here, seeing how quickly Saudi Arabia is developing, those contractors could also help in your development.”
Domanski highlighted the importance of institutional frameworks and regular high-level engagement. During his visit, discussions focused on communication mechanisms and a formal framework for cooperation.
“First of all, we need communication and we need to have a frame for cooperation,” he said.
“So this is why I’m really glad that together with the minister of trade, minister of investment, we were discussing both communication, and we’d like to see each other, invite each other more often, as this is very, very, important.
“And we’d like to set, also, the frame for cooperation. And such a document will be signed today. So we will decide who will be responsible for some particular areas and when we would like some results to be delivered.”
The move builds on existing structures, including the Saudi-Polish Coordination Council and a Saudi-Polish Business Council, as well as a new memorandum of understanding signed in January to strengthen the partnership’s strategic character.
Domanski said he hopes Saudi delegations will soon travel to Poland, including for major economic and reconstruction-focused events.
“I do hope that our friends from Saudi Arabia will join us during our economic congress, which will take place in Katowice in the Silesia region, the most industrialized region of Poland, at the end of June,” he said.
He also highlighted Poland’s role in hosting a major summit on Ukraine.
“We will host the Ukrainian Recovery Conference, which is a truly international event. And we would also love to see our Saudi friends to be there,” he said.
“I’ve invited ministers to participate in those events.”
While his focus remains economic, Domanski did not rule out expanding cooperation into defense, particularly as Poland ramps up military spending and industrial capacity.
“Unfortunately I couldn’t attend,” he said, referring to the World Defense Show currently taking place in Riyadh. “Having said that, it’s worth noting that Poland spends close to 5 percent of our GDP on defense. We intend to build a very strong defense industry in Poland.
“We are, of course, supporting, building a strong defense industry in Europe. But of course, I’m mostly focused on Poland. And therefore I believe that we can provide really, very good solutions for and very good equipment that could be presented here, and hopefully we can develop our cooperation also in this sector.”
For Domanski, Saudi Arabia represents not only Poland’s most important economic partner in the Arab world, but a gateway to diversification and scale.
“Polish companies are getting larger and larger,” he said. “And, of course, are looking for diversification, looking for new markets and for reliable partners like Saudi Arabia.”
