Boeing and Embraer Researching Biofuels, Embraer Sales Down, Learjet 85 Program Halt Could be Good for Business

Boeing and Embraer are partnering for research into biofuels. Embraer’s fourth quarter deliveries are down from a year ago -but only slightly. Analysts say that pausing the Learjet 85 is not all bad especially for their competition like the Citation Latitude and the Legacy 500.

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Boeing, Embraer Partner to Bring Biofuels to Brazil

Boeing and Embraer have opened a joint sustainable aviation biofuel research center in Brazil. The collaborative effort to further establish the aviation biofuel industry is located at the Boeing-Embraer Joint Research Center in the Sao Jose dos Campos Technology Park, where the companies will coordinate and co-fund research with Brazilian universities and other institutions.

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Brazil-based Embraer delivered 52 business jets and 30 commercial jets during the fourth quarter of 2014, the company said.

Business aircraft deliveries for the quarter were down slightly from 2013, when Embraer delivered 53 executive jets, including 38 light jets and 15 large-cabin jets, during the fourth quarter of 2013.

Embraer Legacy 500 executive jet

For the year, the company delivered 116 executive jets, including 92 light jets and 24 large jets…

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Bombardier Aerospace’s decision to pause its Learjet 85 program should not be seen as a sign of weaker demand for Cessna’s or Embraer’s competing products, analysts say.

Bombardier Learjet 85

The Learjet 85 pause, in fact, is good news for the competition, Jefferies analyst Howard Rubel wrote in a note to investors.

“This should be viewed as a positive for all other OEMs (original equipment manufacturers), particularly the Embraer Legacy 500 and Cessna Citation Latitude models,” Rubel wrote.

At the same time, experts predict a decent increase in demand for business jets in 2015, with small and mid-size business jets showing more progress.

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