Sunday, October 02, 2011

Melbourne, Florida: The Embraer Effect

Buying an Embraer jet for the first time, as one might expect, is a big deal for a company.

For one, it's a sign the company and its executives are ready for the big leagues, that their time is so valuable that commercial flights aren't the most efficient way to travel any more.

"It usually marks the coming of age of a company," said Matt Hagans, chief executive officer of the Indianapolis-based Eagle Creek Aviation Services and a longtime Embraer customer. "It means they've become a successful mid-size or larger company and their travel needs will offset the cost of an aircraft."

With Brazilian jetmaker Embraer S.A. now assembling the multimillion dollar Phenom 100 light jets at its Melbourne International Airport facility, and its first-ever North American customer center set to open there in December, Brevard County will provide the backdrop for this corporate coming-of-age story.

Not only will dozens of global business executives be traveling to the Space Coast and spending a few days here as part of the elaborate purchase process for their $3.75 million Phenom 100 (and later, the larger and pricier Pheonom 300), Embraer's Melbourne International center also will serve as a showroom and initial sales center for the jet-maker's bigger Legacy and Lineage series. That means even more buyers passing through.

"It's going to bring some very influential people to the neighborhood to see what's going on there while they're taking delivery of their jet," said Terry Vance of Sante Fe Spring, Calif. The Phenom 300 owner won 14 national drag racing championships in the 1970s and '80s before co-founding the successful Vance & Hines aftermarket parts business.

Local economic and civic leaders are eager to capitalize. They want to pitch the Space Coast's deep pool of skilled workers -- many recently employed at Kennedy Space Center -- as well as the area's relatively low business and living costs and its ample commercial and residential real estate opportunities.

In the end, maybe one of those Embraer customers might decide to locate a business here, or maybe tap into the work force. At the very least, Brevard officials want buyers to return home with glowing reports about the area's quality of life -- and maybe come back for a vacation or, better yet, retirement.

"This is a wonderful opportunity to showcase Brevard County," said Lynda Weatherman, president and chief executive officer of the Economic Development Commission of Florida's Space Coast. "It's going to be really exciting."

A matter of convenience

Vance, president of Vance & Hines, had to travel to Brazil, where Embraer is headquartered, to take delivery of his aircraft. He spent 10 days there, going over the aircraft's specs with his pilot and Embraer engineers.

Ten days might be atypical, but zooming off to Brazil isn't the most convenient trip for many U.S. executives.

With a facility in the United States, Embraer will be able to better go head-to-head with its U.S. corporate aircraft competitors like Wichita, Kan.-based Cessna Aircraft Co. and Hawker Beechcraft Corp., two companies known for their customer service that also helped Wichita earn a storied reputation in business aviation.

"You can imagine the convenience for Embraer customers in the United States when they actually have a delivery facility in this country," Vance said. "It's going to be much easier and nicer. That's why Melbourne is so important for Embraer."

The Embraer process

When customers decide to purchase a new jet, they'll likely make a few visits to Melbourne and Embraer's showroom, where they can study mockups of various jets and review the interior color schemes, seating configurations, upholstery and other options.

Then, as their jet is assembled, an Embraer "contracts team" remains in contact with customers as various milestones are reached, like when the avionics are installed and the carpeting is added.

"Of course, we also encourage our customers to visit the factory while their jet is being built to see the progress for themselves," said Clint Clouatre, vice president of marketing for Embraer's executive jet line.

Embraer has also set up private business suites at its customer center with full offices, Internet access, lounge seating and big-screen televisions.

"Executive jets are also business tools," Clouatre said. "So, just as with their aircraft, they can both work and relax."

When the jet is ready, there are test flights that will allow the new owner to take in scenic views of the Space Coast. And at final delivery, Embraer holds a small ceremony.

"Just by its nature this is a fun industry," Clouatre said. "And when you take delivery of an aircraft it's a major accomplishment in life."

Full production of the Phenom 100s, about eight aircraft a month, should be achieved sometime in 2012. No timetable has been set on when the Phenom 300 might start being assembled at Embraer's $50 million facility here.

Learning about the area

Customers shopping for an Embraer jet will spend time in the white, sleek design studio and customer center just off Apollo Boulevard and General Aviation Drive.

But there will be at least some selling going on outside the building.

That could mean a trip to the Kennedy Space Center, maybe a kayak trip in the name of eco-tourism, or more likely, golf at a local course and a nice dinner. Whatever the customer wants.

Though nothing formal has emerged, Embraer is working with the EDC and the Melbourne Regional Chamber of East Central Florida for suggestions on extra-curricular activities for customers.

In the next several weeks, the company plans to hold an outreach event with local businesses to get ideas on where to entertain customers.

The company also is relying on its employees, including staff who relocated here from the Fort Lauderdale area, for suggestions on attractions to visit.

"As they come for house-hunting trips or planning sessions, we have been able to sample various hotels and restaurants ourselves," Embraer's Clouatre said. "As we assemble the balance of our concierge type of team, we will assemble an extensive list of properties, restaurants and activities to begin conducting site visits and assemble a list of Embraer recommendations."

The EDC's Weatherman and officials at Melbourne International, who are talking to Embraer suppliers and other aviation companies about locating here, said it's still a matter of finding out how and where they will fit into the sales process.

They want to support Embraer but they can't interfere in the company's sales process by nudging their nose into the hangar, so to speak, and hard-selling business opportunities in Brevard.

"We're going to be there to do anything Embraer needs us to do," Weatherman said.

Hagans, of Eagle Creek Aviation Services, has been to Melbourne a few times. As part of its charter services and sales operations, Eagle Creek has purchased more than 25 Phenoms since Embraer started production. Hagans believes most of Embraer's customers will stay on the Space Coast and not venture to the Orlando area .

"Your local businesses should have ample opportunities to meet and 'sell Melbourne' to a whole new array of visitors," he said. "Embraer folks are pretty bright. I'm sure Melbourne wasn't chosen at random or solely based on costs or incentive. I have had enough interaction with senior Embraer executives to know they are working very hard making the Melbourne assembly and delivery center a world-class affair."

Locals eager to play a role

Djon Pepaj, who operates the South Brevard restaurants and nightspots Andiamos, City Tropics Bistro, Djon's Steak and Lobster House and Sand on the Beach, has seen his share of upscale customers. They've ranged from the former secretary of the Air Force to celebrity photographer Annie Leibovitz. Embraer representatives have patronized at least two of his establishments.

He believes one of his places, or a handful of competitors like Café Margaux, the Chart House and the Yellow Dog Café, would provide an appropriate gastronomical addendum to Embraer's sales system in Brevard.

"It would certainly move things in the right direction," Pepaj said.

During the site selection process two years ago, Embraer executives peppered the EDC and others about the availability of nice hotels, restaurants and activities.

"The quality-of-life issues were very, very important to them," Weatherman said.

"We, and other agencies, will be here to help them learn about the area. It's just not going to be the customer coming here to get the keys to the aircraft and flying away."

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