), an aircraft manufacturer, entered into a life time contract
Honeywell International Inc.
), a diversified technology and manufacturing company. Per the
deal, Honeywell will provide avionics systems to be used inside
Embraer's second generation of E-jets, scheduled to enter service
in 2018. The total contract value is estimated to be $2.8
Embraer is looking for suppliers for its new E-jets to be able
to offer an enhanced and efficient version of the product. For
this purpose, it also selected Pratt and Whitney Canada
International Inc. last month, to deliver engines for the
Honeywell's avionics systems, in general, are designed to
include display, navigation and communication systems in the
cockpit of the jet, making the flight safer, more accurate and
efficient, for the pilots and the crew. However, its Primus Epic
2 integrated avionics system to be used in Embraer's second
generation E-Jets comes with added features like synthetic vision
and advanced flight management, which ensure safety while flying
even in poor visibility.
According to Foxbusiness, Honeywell was facing strong
competitive bids from
) for the contract. Moreover, Honeywell also faces constant
complaints from Embraer as well as
), related to late deliveries as well as software issues.
Therefore, it was most essential for Honeywell to win the
In spite of late deliveries, Embraer purportedly stuck to
Honeywell because of the new features to be added to the Primus
Epic avionics system. In an effort to revolutionize its
commercial jets, the company has been adding features to its new
jets, which will also enable lowering the maintenance costs, fuel
usage as well as reducing emissions and external noise. The new
jet will also be sporting dual Head-up Displays (HUD), with the
supplier to be chosen later this year.
The introduction of the new generation jets, with advanced
features is expected to make Embraer the leader in the 70 to 120
seat airline market. The company has its operations in around 42
countries. Embraer currently holds a Zacks Rank #3 (Hold).
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