Embraer’s Upcoming Jets: Praetor 500 and Praetor 600

Embraer’s Upcoming Jets: Praetor 500 and Praetor 600

November 29, 2018

Embraer announced two new Aircraft at MBAA 2018: the Praetor 500 and the Praetor 600. We will be focusing on the Praetor 600 here because we see this as a real game changer in the private aircraft market. The Praetor 600 is a Legacy 500 airframe with added fuel tanks and upgraded motors giving it a range of 3900 nautical miles (compared to the Legacy 500’s range of 3,125 nautical miles). These upgrades make this one of the most compelling offerings in the super mid-size market. They have announced pricing starting at $20.9 million which is less than its competitors. The Praetor 600 is basically a Challenger 605’s range with a smaller cabin, but newer technology which should result in a lower operating cost. With the new range, routes such as London to New York and Dubai to London are achievable without stopping. These are two key routes for European buyers and this extra range provides significant additional real world capability.

However, this will make the Legacy 500 less desirable and eventually obsolete. It will affect values, though as to what extent we will have to see. The Praetor 600’s price is only about 10% more than the Legacy 500 but has 20% more range. It will be interesting to see if the demand for the shorter range Legacy 500 can sustain a separate product offering, or if the Praetor 600 will replace the Legacy 500 in the Embraer line. The announcement of the Praetor 600 affects those who own Legacy 500s and those awaiting delivery of a Legacy 500.

Embraer has said the Praetor 600 will deliver mid-2019. We foresee Legacy 500 owners having a tough next couple years with the market focusing on the Praetor 600.

Embraer Praetor 600
(photos courtesy of Embraer)

Briefly, the Praetor 500 is a Legacy 450 body with an increase in fuel, bringing its range to 3250 nautical miles (the Legacy 450 only has 2900 nautical miles). This too is a material improvement in range, although the increased functionality in real world operations is less notable than on the Praetor 600.

Embraer Praetor 500
(photos courtesy of Embraer)