Epic Aircraft delivered the first E1000 turboprop in early 2020, but the initial production ramp-up was hurt by the impact of COVID-19 on the aerospace market. Epic delivered only a handful of aircraft in 2020, but production rose in following years, with Epic delivering 10 in 2021 and 16 in 2022. We expect production to continue to increase provided the U.S. economy avoids a downturn.
Last week, Brazilian fractional-share operator Avantto recently announced an order for 34 E1000 GXs at LABACE. It expects to take delivery of two aircraft by the end of 2023, followed by eight aircraft per year during 2024-2027. The deal is contingent on Epic securing Brazilian certification for the aircraft, and assuming it goes through, it will boost production in the near term.
The primary competition to the E1000 is Daher’s TBM 900 family. The TBM 900 is a six-seat luxury turboprop that has long been a popular choice for owner/operators looking for the high speed and long range of a small business jet without the associated operational costs.
The E1000 will take some customers away from Daher, but we nevertheless think the TBM family will retain most of its market share due to its established position and wide user base in the United States, the most important region by far in the luxury turboprop segment.