Addison M. Schonland

-We conclude that the Bombardier CRJ program, considering the various equipment advances and technology improvements, remains an effective and credible regional jet option. The CRJ will certainly be effective through 2019, and if US scope clause size limits do not ease, will be effective through 2024. Rumors of its premature demise are therefore overstated.

Embraer's re-engined E2 aircraft should prove very successful, given the well-established E-Jet customer base, its strong operating economics, and improved performance. We expect Embraer and Mitsubishi to lead the market for regional jets under 100 seats, with the E-175 E2 continuing the popularity of the existing E-175 in North America and other markets. The E2 program has seen orders grow twice as fast as the E-Jets, and tellingly, twice as fast as its direct competition. The E2 program has 272 firm orders and 670 commitments.In the 100-150 seats market, Embraer and Bombardier will lead the market, as their E-190 E2, E-195 E2, CS100 and CS300 aircraft are more efficient than "shrink" models including the Airbus A319neo and Boeing 737 MAX 7. With a leadership position in both segments of the 70 to 130 seats market, Embraer is well positioned to capture a strong share of both regional and mainline airline growth.