the rule is
A little over a decade ago, we published “The Rule of 70 to 110” — a rationale for a lower seat count that would help carriers rightsize their capacity to match demand. It was the premise behind our E-Jet family of four. And now, with over 1,000 of them delivered and serving every continent, it is clear the rationale behind “The Rule” was right.
A second generation of E-Jets redefines our segment as 70 to 130 seats. But the essence of our original vision endures, even though the dynamics of our industry have changed. A key example is the now-common focus of airlines on lower unit costs as a strategic advantage in the aggressive pursuit of market share.
At Embraer, we believe unit profit and return to shareholders are better measures of success. Accordingly, we support the use of a new metric in conjunction with traditional measures: Return on Aircraft Assets (ROaA), as distinguished from conventional ROA. This, we submit, will be an increasingly important indicator for aircraft evaluation.