Brazil’s Embraer looking to step up jet production

Embraer is striving to enhance its commercial plane production to 120 units annually, increasing from its current output of 73. This initiative comes in response to airlines demanding more alternatives to the prevailing Boeing-Airbus duopoly. Additionally, Embraer is open to exploring a new aircraft design to directly compete with these industry giants. The potential establishment of a final assembly line in India, however, hinges on securing significant orders from local airlines.

Based in New Delhi, Embraer is determined to boost its production capacity with the intention of delivering between 75 and 80 planes in the commercial market this year. The company’s CEO, Francisco Gomez Neto, shared insights in an interview, stating, “We plan to increase production to 110 to 120 per year.” The company is also considering a complete redesign in order to capture a larger share of the market. While Neto did not confirm specifics on whether this would involve a new commercial jetliner, speculation suggests plans for a next-generation, narrow-body jet designed to compete with high-demand models such as the Airbus A320 and Boeing 737.

Neto elaborated, “It could be a new commercial or business jet… a new commercial jet, either larger or smaller than our existing models.” He emphasized the collaborative approach with engine manufacturers and the importance of researching various wing designs. This new initiative aims to develop a product that will remain competitive for the next two to three decades.

In the backdrop, Airbus is also advancing a next-generation single-aisle aircraft slated for release in the latter half of the 2030s.

With Boeing and Airbus currently lagging on new aircraft deliveries, airlines are becoming increasingly frustrated over their ambitions to transition to more fuel-efficient planes and expand their services. Emirates’ CEO Tim Clark expressed his dissatisfaction with the ongoing supply chain issues, stating, “I am pretty tired of seeing the hand-wringing about the supply chain: you (manufacturers) are the supply chain.” Furthermore, while there is a recognized need for a third manufacturer in the market, he noted that the existing duopoly does not seem poised to dissolve anytime soon.

United Airlines CEO Scott Kirby echoed these sentiments, calling for enhanced competition within the aerospace sector.

Neto indicated that he sees promising opportunities in India for both commercial and military aircraft, expressing a willingness to set up a final assembly line contingent on securing a substantial order from Indian airlines. “We are very open to discussion, but we need to have a scale of deliveries in India to make business sense,” he said.