Embraer has suffered a major setback following the decision of 170/190 launch customer Swiss to slash its firm orders and options for the Brazilian manufacturer’s new series of aircraft. In late March the Basel, Switzerland-based carrier announced it was reducing its original firm order of thirty 70-seat Embraer 170s and thirty 108-seat 195s to 15 of each model and deferring delivery for a year. It also reduced the number of options for both aircraft from 100 to ten 170s and ten 175s, though they can be converted to any of the four 170/190 variants.
Relaunched after the 2000 bankruptcy of Swissair, Swiss cited the “generally unfavorable economic situation and the carrier’s current condition in particular” for the revised Embraer order. Swiss confirmed that a revised agreement with Embraer provides for rescheduling of delivery of the first aircraft from August 2003 to August 2004, when four 170s will be delivered, followed by eight aircraft in 2005. Even before its latest move, Swiss had already changed Embraer delivery arrangements several times, halving its delivery schedule from eight to four this year and from 12 to eight aircraft next year. The airline is also negotiating deferral of delivery of five Airbus A340-300s due for handover next year.
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