The airline market update provides an overview of key trends in the global airline industry and for Embraer's product lines. The industry is recovering from the economic downturn but faces risks from high oil prices. Embraer's ERJ 145 family has over 1,100 aircraft delivered while the E-Jets family has over 700 delivered and nearly 1,000 orders. Both product lines have a well-established global customer base and network of service centers.

1. Mar/2011
Airline Market Update
Paulo Cesar Silva - EVP Airline Market

2. Forward Looking Statement
This presentation includes forward-looking statements or statements about events or
circumstances which have not occurred. We have based these forward-looking
statements largely on our current expectations and projections about future events and
financial trends affecting our business and our future financial performance. These
forward-looking statements are subject to risks, uncertainties and assumptions, including,
among other things: general economic, political and business conditions, both in Brazil
and in our market.
The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,”
“expects” and similar words are intended to identify forward-looking statements. We
undertake no obligations to update publicly or revise any forward-looking statements
because of new information, future events or other factors. In light of these risks and
uncertainties, the forward-looking events and circumstances discussed in this
presentation might not occur. Our actual results could differ substantially from those
anticipated in our forward-looking statements.
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

3. Contents
Air Transport Industry Review
ERJ 145 Family
E-Jets Family
Market Outlook 2010-2029
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

4. Air Transport Demand - IATA
World – International RPK Growth Rate (% yoy)
12
10
Economic Recession
8
6
4
2
0
-2
-4
-6 Lehman Iceland
Brothers Volcano
-8
Bankrupcy
-10
-12
7.4% 1.6 % -3.5% 8.2% 8%
-14
May-07
May-08
May-09
May-10
Jan-07
Mar-07
Jul-07
Jan-08
Mar-08
Jul-08
Jan-09
Mar-09
Jul-09
Jan-10
Mar-10
Jul-10
Jan-11
Sep-07
Nov-07
Sep-08
Nov-08
Sep-09
Nov-09
Sep-10
Nov-10
Air travel rebounded after being depressed by severe
winter weather conditions in Europe and North America
Source: IATA (Feb/11)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

5. Crude Oil & Jet Fuel Price Evolution
180
Crude Oil Price Forecast
160 (WTI US$/bar ; Real price 2009 USD)
Jet Fuel
140 Year
120 Crude Oil (WTI)
2011 89
US$/barrel
100
2012 90
80
2013 92
60
2014 92
40
2015 94
20
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Upward pressure on oil and jet fuel due to MENA instability
Source: EIA - Energy Information Agency and Global Insight (Mar/11)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

6. Airline Financial Results - World
20 Net Profit Net Loss Net Margin 8
Net Profit/Loss (US$ billion)
15 6
Region 2009 2010E 2011F
Net Profit/Loss (US$ Billion)
10 4
Africa - 0.1 0.1 0.0
5 2
Net Margin (%)
Asia Pacific - 2.7 7.6 3.7
0 0
Europe - 4.3 1.4 0.5
-5 -2 Latin America 0.5 1.0 0.3
-10 -4 Middle East - 0.6 1.1 0.7
North
-15 -6 - 2.7 4.7 3.2
America
-20 -8 World - 9.9 16.0 8.6
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011F
2010E
High fuel prices squeeze airline profits despite better economic outlook
2011F net profit of US$8.6bi, down from US$9.1bi in last December forecast
Source: IATA (Mar/11 ; ICAO 1995-2008 and IATA 2009-11)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

7. Air Transport Industry Review - Summary
Recovery of market demand – risks due to high oil prices
Local volatility due to Japan’s earthquake and political
instability in the Middle East
Weak revenue environment, but with signs of improvement
Continuous efficiency improvement and cost reductions
More consolidations & mergers and fewer start-ups
Long term growth in air transport demand despite crisis
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

8. More than 1,100 ERJ platforms delivered
(nearly 900 to commercial airlines)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

9. ERJ 145 Family Order Book
Commercial Aviation
(as of Dec 31st., 2010) Firm orders Deliveries Firm Backlog
ERJ 135 108 108 0
ERJ 140 74 74 0
ERJ 145 708 706 2
890 888 2
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

10. ERJ Network
North American Carriers (1H2011)
Fleet in Service
ERJ ERJ ERJ
Dec/10
135 140 145
22 72 118
6 2 7
46
281
12
Total 28 74 464
ERJs 566
566 ERJs serving nearly 660 markets
Essential feeder to US hub & spoke system
Source: OAG, Embraer
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

11. Pre-Owned ERJ Transactions
Republic - USA Passaredo - Brazil
BMI – United Kingdom
FinnComm - Finland Dniproavia - Ukraine Aeromexico Connect - Mexico
Satena - Colombia City Airline - Sweden Diexim Expresso - Angola
Air Namibia - Namibia Air26 - Angola South African Airlink - USA
More than 200 ERJ transactions since 2000
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12. ERJ 145 in Mexico
Fleet Evolution
ERJ 145 Network
39 ERJ 145 (5 new + 34 pre-owned)
expanding Aeromexico regional network
Source: OAG (Dec/2010)
Source: OAG
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

13. ERJ 145 in Ukraine
Fleet Evolution
ERJ 145 Network
25 pre-owned ERJ 145 (18 in service + 7 to be added)
Further expansion with 10 new E190s
Source: OAG (Dec/2010)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

14. ERJ 145 in Brazil
ERJ 145 Network Fleet Evolution
11 pre-owned ERJ 145 (projected growth to nearly 20 units)
“The ERJ 145 is the base for Passaredo’s ambitious expansion plan by
increasing frequencies and adding destinations”
José Luiz Felício, Passaredo Transportes Aéreos CEO
Source: HOTRAN (Dec/2010)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

15. RJ50 Market Trends
Core role in hub-and-spoke tend to continue
High fuel prices tend to pressure RJ50 operation
RJ50 replacement cycle around 2015-2025
US RJ50 fleet of ~900 units by 2015
Trend towards larger 75-seat jet (US scope relaxation)
Secondary markets expanding with pre-owned RJ50s
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

16. Nearly 1,000 E-Jets ordered
More than 700 delivered

17. E-Jets Family Order Book
Commercial Aviation Firm
Deliveries Backlog
(as of Dec 31st., 2010)
Orders
191 181 10
173 133 40
478 321 157
105 64 41
947 699 248
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

18. E-Jets Market Acceptance
947 orders + 720 options
First delivery 2004. Nearly 1,000 net orders accumulated.
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

19. Market Confidence on E-Jets in 2010
2 2 E170
35
36 E175
1
17
10
10
6
49 E190
2
2
1
Undisclosed 1
8 8 E195
95 E-Jets orders
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

20. E175 - Flybe
Jul/2010: EMBRAER AND FLYBE SIGN AN ORDER FOR 35 EMBRAER 175
(plus 65 Options and 40 Purchase Rights)
“The EMBRAER 175 will give us significant added capacity and is
particularly suited to the sector lengths prevalent in Europe that
we are most interested in exploiting. In short, it perfectly fits Flybe’s
Jim French
Chairman and
business model.”
CEO of Flybe
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

21. E190 - Air Lease
Oct/2010: EMBRAER AND AIR LEASE SIGN FINAL AGREEMENT FOR UP TO 20 E-JETS
(15 orders (5 re-confirmable) + 5 options)
“… the unique design of the E-190 allows us to offer Air Lease customers a
mainline product but at regional jet operating economics”. “Since Fboro, we
have received significant interest from customers from all parts of the world.”
John L. Plueger, President and COO of Air Lease Corp.
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

22. E190 - Republic (Frontier)
Nov/2010: EMBRAER and REPUBLIC confirm deal for up to 24 E190s, plus 24 options
(Six firm orders and the other 18 aircraft should be confirmed on or before Apr/2011)
E190 Routemap 2010 15 E190 already operating under Frontier colors
Source: OAG
“The E-Jets are a favorite among our passengers because of their
comfort and amenities. They play an integral and growing role in
Bryan Bedford our Frontier Airlines operations.”
CEO of Republic Airways
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

23. E190 - China Southern Airlines
CDB LEASING, FROM CHINA, SIGNS FOR TEN EMBRAER 190 JETS
The aircraft will be operated by China Southern Airlines
“China Southern enjoys the good partnership with Embraer and is full of
confidence in its products. The EMBRAER 190 is a successful aircraft with
proven economics and performance, and it is well received by the market.”
Mr. Xu Jiebo, Vice President of China Southern Airlines Co. Ltd. (Jan/2011)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

24. Market Confidence on E-Jets in 2011
... same positive trend:
Jan/2011: Dniproavia (Ukraine)
10 E190
Feb/2011: TRIP (Brazil)
4 E190
Mar/2011: Alitalia (Italy)
15 E175
20
5 E190
Jan-Mar/2011: 34 E-Jets orders
... more orders to come ...
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

25. More than 700 E-Jets delivered
Mar 2004
Mar 2004 Nov 2010
Nov 2010
First Delivery
First Delivery
Oct 2005
Oct 2005
Dec 2006
Dec 2006
Oct 2007
Oct 2007 May 2008
May 2008 Dec 2008
Dec 2008 Sep 2009
Sep 2009
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

26. E-Jets Customer Base (by Region)
(% of Customers)
North America Asia Pacific & China
Latin America Middle East & Africa
Europe & CIS
Diversified customer base across five continents
Source: Embraer (Dec/2010)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

27. Customer Support & Services Global Presence
Operations in Brazil, United States, Europe and Asia
France
USA Villepinte
Nashville
Fort Lauderdale
China
Beijing
Portugal
Évora
Singapore
Brazil Singapore
São José dos Campos
Dec/2010
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

28. EASC Network – Airline Market
Embraer Authorized Service Centers – Current Authorized MROs
Flybe (England)
E-Jets / ERJ
Line / Heavy
Tianjin (China PR)
AAI (France)
E-Jets / ERJ
E120
Line / Heavy
Line / Heavy
EAMS (USA)
E-Jets / ERJ
Line / Heavy OGMA (Portugal)
E170 / ERJ
Line / Heavy Egyptair (Egypt)
E-Jets
Line / Heavy
NAC (South Africa)
E120 (former Naturelink)
Line / Heavy
TAP (Brazil)
E-Jets / ERJ
Embraer Service Center (Brazil)
Line / Heavy
E-Jets / ERJ
Line / Heavy
8 Authorized MRO: EAMS; OGMA; EgyptAir; AAI; Flybe; NAC; Tianjin
* Note: Embraer Service Center (GPX) in Brazil depending on special availability
Reference: Feb 2011
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

29. EASC Network – Airline Market
Embraer Authorized Service Centers
Flybe (England)
E-Jets / ERJ
Line / Heavy
Tianjin (China PR)
AAI (France)
E-Jets / ERJ
E120
Line / Heavy
Line / Heavy
EAMS (USA)
E-Jets / ERJ
Line / Heavy OGMA (Portugal)
STAECO (China PR)
E170 / ERJ
Egyptair (Egypt) E-Jets / ERJ
Line / Heavy
E-Jets Line / Heavy
DIAF CEMA (Ecuador) Line / Heavy
E-Jets / ERJ
Line / Heavy John Holland (Australia)
NAC (South Africa) E-Jets / ERJ
E120 (former Naturelink) Line / Heavy
Line / Heavy
TAP (Brazil)
E-Jets / ERJ
Embraer Service Center (Brazil)
Line / Heavy
E-Jets / ERJ
Line / Heavy
MRO Authorized 8 Authorized MRO: EAMS; OGMA; EgyptAir; AAI; Flybe; NAC; Tianjin
MRO Under Authorization Process 3 MRO under Authorization: John Holland; STAECO; DIAF/CEMA
5 Additional MROs for new Authorizations by 2012 (potential)
Reference: Feb 2011
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30. Full Flight Simulator Network
Toronto – E170 Charlotte – E190 Montreal – E170 London – E170/190 Amsterdam – E170/190 Helsinki – E170
Air Canada US Airways FTF Oxford Aviation FlightSafety Finnair
Manufacturer: CAE Manufacturer: CAE Manufacturer: CAE Manufacturer: CAE Manufacturer: CAE Manufacturer: CAE
Toronto – E190
Air Canada
Manufacturer: CAE
Paris – E170
FlightSafety
Minneapolis – E190 Manufacturer: FlightSafety
Compass
Manufacturer: FlightSafety
Munich – E190
Lufthansa
St. Louis – E170/190 Manufacturer: CAE
FlightSafety
Manufacturer: FlightSafety
Zurich – E170
St. Louis – E170 FlightSafety
FlightSafety Manufacturer: CAE
Manufacturer: FlightSafety
Shizuoka – E170
St. Louis – E170
Fuji Dream
FlightSafety Manufacturer: CAE
Manufacturer: FlightSafety
Sanya – E190
Orlando – E190
Tianjin
jetBlue Manufacturer: CAE
Manufacturer: CAE
Orlando – E190 Singapore – E170/190
jetBlue FlightSafety
Manufacturer: CAE Manufacturer: CAE
Orlando – E170/190
jetBlue Brisbane – E190
Manufacturer: CAE Virgin Blue
Manufacturer: FlightSafety
FlightSafety FFSs
Bahrain – E170/190
Customer Owned FFSs São Paulo – E190 Gulf Air (RFT 2011)
Azul (RFT 2011) Manufacturer: CAE
Other Providers FFSs Manufacturer: FlightSafety
Upcoming RFT* Panama City – E190 Buenos Aires – E190 São Paulo – E190 Jeddah – E170 Ammam – E170/190
*Ready For Training Copa Austral (RFT 2012) Azul Saudi Arabian JATS (RFT 2011)
Manufacturer: CAE Manufacturer: FlightSafety Manufacturer: FlightSafety Manufacturer: CAE Manufacturer: FlightSafety
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

31. E-Jets Customer Base (by Business Model)
(% of E-Jets Fleet+Backlog)
Low Cost Carriers Network Airlines
• New markets • Right-sizing
• Right-sizing • New markets
Regional Airlines
• Natural Growth
• Right-sizing
E-Jets efficiency in all business models
Source: Embraer (Dec/2010)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

32. Regional Airlines
E-Jets Deployment:

33. E175 - Right-sizing at Delta Airlines
New York LaGuardia (LGA) – Washington National (DCA)
Dec/08 Feb/11
Frequency 15 15
Seats 2,058 1,050
MD88 E175
MD88
MD88 E175
MD88 E175
MD88 E175
MD88 E175
MD88 E175
MD88 E175
MD88 E175
E175
MD88 E175
MD88 E175
MD88 E175
MD88 E175
MD88 E175
MD88 E175
E175 E175 Source: OAG (1st Wed of Dec/08 and Apr/09)
“These are not normal Regional Jets when we say Embraers.
These are the E175s which are actually the most comfortable
airplanes out there – more comfort with fewer seats” (2009)
Glen Hauenstein
Delta EVP Network
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

34. Network Airlines
E-Jets Deployment:

35. E-Jets: Complementing Narrowbodies
Abu Dhabi - Bahrain Panama City - Havana Helsinki - Brussels
Oct/10 Feb/11 Jan/10 Jan/11 Mar/08 Jan/11
SEATS 532 424 496 596 405 458
06:00 B737-700 E190
07:00
B737-700 B737-700 E170
08:00
A320 E190
09:00
10:00
11:00
A319 A319
12:00
13:00 A320 A320
14:00
15:00 B737-700 B737-700
16:00
B737-800
17:00 B737-700 A319 E190
18:00 E190
19:00 A320 A320
A320 E190
20:00
21:00
22:00
23:00 A319 E190
Source: OAG (2011)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

36. E-Jets Complementing Narrowbodies
… many additional right-sizing opportunities worldwide!
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

37. Low Cost Carriers
E-Jets Deployment:

38. E-Jets Helping Explore New Markets
Low Cost Carriers with Two Fleet Types
Seats
150+
A320 B737-700 A320 A320
100
E190 E190 E190
North America Asia Pacific Europe Middle East
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

39. E190: essential to LCCs Expansion
The importance of a mixed fleet
Number of Markets
A320 E190 Both 737-800 E190 Both
E190 helping LCCs to explore new market opportunities
Source: OAG ; Airport IS (IATA)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

40. E-Jets Helping Reduce Costs and Fuel Burn
Fuel Burn
Source: www.eforefficiency.com
Note: European economic conditions, fuel at 0.50 EUR/liter
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

41. Replacement Opportunities - World
(Jets 61-120 seats)
Nearly 1,000 aircraft with more than 15 years old
Source: OAG (Dec/10 ; Passenger, Active in Service, Scheduled Services)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

42. 2010 Aircraft Investment Appeal
Investors Poll 2010 – Jets up to 210 seats
Investment
Equipment
Appeal
Boeing B737-800 4.95
Airbus A320 4.70
Airbus A321 3.70
Embraer E190 3.68
Boeing B737-700 3.68
Airbus A319 3.65
Embraer E195 3.58
Embraer E175 2.79
Embraer E170 2.74
Bombardier CRJ900 2.61
Bombardier CRJ700 2.28
Boeing B737-600 1.63
Airbus A318 1.37
Source: Air Finance Journal, September 2010
* Scored out of 5, with 1 being least appealing investment and 5 being most appealing investment
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

43. E-Jets supported by Leasing Companies
Source: Embraer (Dec/2010)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

44. E-Jets financing partners !
Companies involved in financial support for the E-Jets
AVIC INTERNATIONAL LEASING CO. LTD.
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

45. Market Share - World (Jets 61-120 seats)
Embraer: 170/175/190/195 Sukhoi: Superjet 100
Bombardier: CRJ700/900/1000; CS100 Comac: ARJ-21
Airbus: A318 Antonov: An-148/158
Boeing: B737-600 Mitsubishi: MRJ90
Considering accumulated Net Orders up to Dec/10
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46. E-Jets
Commitment to product update
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

47. Main Recent & On Going Developments
E 170 AR (EASA)
14.000 ft E190
15 knot (8000 ft)
ISA + 39 E170/E190 (FAA)
Load 21.5 - Pentium M
Dual Active HF
VDL Mode 2 IFE
Load 21.4 Panasonic Slim Seat
2008 2009 2010 2011
CAT IIIb E170
ETOPS 120' E190 E175 AR (FAA) Steep Approach E190 CPDLC
EFB 170/175/190/195 ADSB-Out Load 25
RAAS ISA+39 EASA
CAT IIIa Autoland 195
Load 23
Docking EFB
As of December 31st, 2010
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48. E-Jets vs. New Entrants
Competitive Scenario
120
E195 CS100
110
E190 110 seats
100
Seat Capacity (32'' pitch)
SSJ100/95
ARJ21 100 seats
90
MRJ90
E175
80
70-90 seats
E170
70
MRJ70 (?)
60
1800 2000 2200 2400 2600 2800 3000 3200
Range (nm)
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

49. 6,400 new jet deliveries (61-120 seats)
Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US
Right-sizing of narrow-body operations
Regional aviation development in Emerging Markets
Acceleration of replacement of old & inefficient jets
Russia
CIS
Europe
North 385
America 1,490
6%
23% China
2,010
Middle 930
31%
East 15%
110
Africa Asia
Latin 4%
America 240 Pacific
560 4% 570
9% 9%
The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent

50. E-Jets Around the World
58 Airlines from 39 Countries
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