SOURCE: USA Today http://www.usatoday.com/money/industries/manufacturing/2005-05-04-embraer-microjet_x.htm Embraer branches out into growing microjet sector By Roger Yu, USA TODAY Brazilian plane maker Embraer, best known for its small jetliners, is planning a new line of relatively low-cost microjets to be sold to businesses and individuals. Embraer spokesman Doug Oliver said Wednesday the company, a major supplier of the 50-seat regional jets that have become a mainstay in commercial aviation, is seeking to diversify its products. He cited "a huge potential for growth" in the market for microjets. Embraer's planned microjet ? also called a very light jet ? is slated to be available in mid-2008. The plane will carry up to eight passengers and will have a range of about 1,300 miles. Price: $2.75 million. Embraer becomes the latest entrant in the nascent market for very light jets ? those that carry less than 10,000 pounds. Three U.S. companies ? Cessna Aircraft, Eclipse Aviation and Adam Aircraft ? are the chief competitors. None of the microjets has yet been certified to fly, but the market is expected to be one of the fastest-growing segments in aviation as business people look for greater travel flexibility. Microjets are being priced at a fraction of the typical corporate jets now on the market. A recent forecast by the Federal Aviation Administration said about 4,500 microjets will vie for airspace in the USA by 2016. Randy Padfield, editor-in-chief of trade publication Aviation International News, said the price of Embraer's very light jet is higher than those of competitors. "It's going to be an uphill battle for them," said Padfield. "But they have in their favor their track record of building reliable, good airplanes." The target market, he says, will be executives who seek flexible traveling schedules, avid amateur pilots and new charter services. Development of an on-demand air charter market remains "somewhat of a wild card" in the future of very light jets, Padfield said. Last month, former software executive Ed Iacobucci unveiled plans for a new flight service to be known as DayJet. Using microjets from Eclipse, DayJet will provide flights between midsize cities for customers who book their future travel needs at the company Web site. People Express founder Donald Burr and former American Airlines CEO Robert Crandall are launching another on-demand flight service in the Northeast called Pogo. In addition to a line of very light jets, Embraer announced investing $235 million toward a new line of "light jets" ? those that can carry more than 10,000 pounds but are smaller than typical business jets. Embraer's planned light jet will carry up to nine people. Priced at $6.65 million, it is expected to enter service in mid-2009. It will compete with similar planes currently flying, including the ones made by Raytheon and Cessna.