Lot expects growth to take off with Embraers
This addition to LOT's fleet will help it to concentrate on developing its high-quality medium-haul business as a market niche safe from low-fare rivals.
"The Embraer 170 is setting new standards for comfort and cabin volume for our intra-European network," said Marek Grabarek, LOT Polish Airlines CEO. "We are delighted to have this state-of-the-art airplane becoming part of our fleet."
The ten Emb-170s will be delivered in stages until March 2005. The 70-seat planes have less than half the capacity of LOT's current medium-haul aircraft. But the concept behind the Embraer is to offer passengers space.
The use of smaller aircraft is intended to optimize existing routes, where passenger numbers are declining due to low-fare competition. However, business travelers and those who are prepared to pay more aren't going anywhere, so the market is there.
LOT is the new Embraer model's first customer, with options on another eleven Emb-190s or Emb-170s. Two months ago, the first Embraer Emb-170 mid-range aircraft to be commercially flown in the world took off - with LOT livery.
"The Embraer 170's state-of-the-art systems architecture results in operational, man-machine interface and maintainability improvements," said Embraer in an official statement. "It has all the attributes to win over demanding customers and passengers for its cost-efficiency, high levels of comfort and functionality."
Currently, some routes are running with a significant number of empty seats, something LOT would clearly like to avoid. The Embraer solution is to offer a more spacious flight for discerning customers who are prepared to pay more. There will be fewer seats, but few of them will be empty. This will help LOT cut costs massively (putting an end to half-loads) while competing on quality with the likes of SkyEurope, Wizzair and Air Polonia. And LOT's new Embraers will be used on routes from Poland to Vilnius, Kiev, St Petersburg, Minsk, Bucharest, Sofia, Oslo, Milan, Rome, Paris, Stockholm, Brussels and Amsterdam.
The Embraer aircraft are the only type in the world to offer this combination of a medium-range number of seats, extra space and comfort. In an industry paranoid about costs, the Embraer looks to be LOT's big chance. Judging by the Brazilian plane makers advanced orders, it seems that Embraer may one day have a chance of outshining the success of all-powerful Airbus.
"As such, LOT Polish Airlines will take advantage of the unique features of that aircraft, such as the fly-by-wire system, the glass cockpit and the new CF-34-8E engines," said Luiz F. Fuchs, Embraer's Senior Vice-President - Europe, Africa and Middle East - Civil Aviation Market.
J.P. Morgan reportedly expects Embraer sales to reach $3.3 billion (zł.13.2 billion) in 2004 and $3.6 billion (zł.14.4 billion) next year. Embraer earned $135 million (zł.540 million) in 2003, on sales of $2.1 billion (zł.8.4 billion). According to a report in Puls Bisnesu two months ago, LOT will pay $180,000 (zł.720,000) a month across the next twelve years to lease the aircraft.
"The Embraer 170 is setting new standards for comfort and cabin volume for our intra-European network," said Marek Grabarek, LOT Polish Airlines CEO. "We are delighted to have this state-of-the-art airplane becoming part of our fleet."
The ten Emb-170s will be delivered in stages until March 2005. The 70-seat planes have less than half the capacity of LOT's current medium-haul aircraft. But the concept behind the Embraer is to offer passengers space.
The use of smaller aircraft is intended to optimize existing routes, where passenger numbers are declining due to low-fare competition. However, business travelers and those who are prepared to pay more aren't going anywhere, so the market is there.
LOT is the new Embraer model's first customer, with options on another eleven Emb-190s or Emb-170s. Two months ago, the first Embraer Emb-170 mid-range aircraft to be commercially flown in the world took off - with LOT livery.
"The Embraer 170's state-of-the-art systems architecture results in operational, man-machine interface and maintainability improvements," said Embraer in an official statement. "It has all the attributes to win over demanding customers and passengers for its cost-efficiency, high levels of comfort and functionality."
Currently, some routes are running with a significant number of empty seats, something LOT would clearly like to avoid. The Embraer solution is to offer a more spacious flight for discerning customers who are prepared to pay more. There will be fewer seats, but few of them will be empty. This will help LOT cut costs massively (putting an end to half-loads) while competing on quality with the likes of SkyEurope, Wizzair and Air Polonia. And LOT's new Embraers will be used on routes from Poland to Vilnius, Kiev, St Petersburg, Minsk, Bucharest, Sofia, Oslo, Milan, Rome, Paris, Stockholm, Brussels and Amsterdam.
The Embraer aircraft are the only type in the world to offer this combination of a medium-range number of seats, extra space and comfort. In an industry paranoid about costs, the Embraer looks to be LOT's big chance. Judging by the Brazilian plane makers advanced orders, it seems that Embraer may one day have a chance of outshining the success of all-powerful Airbus.
"As such, LOT Polish Airlines will take advantage of the unique features of that aircraft, such as the fly-by-wire system, the glass cockpit and the new CF-34-8E engines," said Luiz F. Fuchs, Embraer's Senior Vice-President - Europe, Africa and Middle East - Civil Aviation Market.
J.P. Morgan reportedly expects Embraer sales to reach $3.3 billion (zł.13.2 billion) in 2004 and $3.6 billion (zł.14.4 billion) next year. Embraer earned $135 million (zł.540 million) in 2003, on sales of $2.1 billion (zł.8.4 billion). According to a report in Puls Bisnesu two months ago, LOT will pay $180,000 (zł.720,000) a month across the next twelve years to lease the aircraft.
