Brazil’s Embraer looking to step up jet production

Embraer plans to significantly ramp up its commercial aircraft production from the current rate of 73 units per year to 120 units. This increase comes as airlines express the need for more competitive options to challenge the dominance of the Boeing-Airbus duopoly. Embraer currently ranks as the third-largest aircraft manufacturer, producing regional airplanes with seating capacities ranging from 50 to 132.

“This year, our target is to deliver between 75 to 80 planes within the commercial segment. Our goal is to boost production to 110 to 120 aircraft annually,” stated Francisco Gomez Neto, CEO of Embraer, in a recent interview with ET. The company is also exploring the possibility of introducing a fresh aircraft design to expand its market share.

While Neto did not specify whether the new design would be a commercial jetliner, reports indicate that the company is working on a next-generation narrow-body jet that could rival popular models such as the Airbus A320 and Boeing 737.

“We are considering introducing a new commercial or business jet, possibly larger or smaller than our current offerings,” Neto explained. “We are in discussions with engine manufacturers and are examining various wing designs to ensure that if we develop a new product, it will meet market needs for the next two to three decades.”

European aerospace leader Airbus is also in the process of developing its next-generation single-aisle aircraft, set to launch in the latter half of the 2030s.

Currently, Boeing and Airbus are facing delays with new aircraft deliveries, creating frustration among airlines eager to upgrade to more fuel-efficient models and initiate new services. Emirates CEO Tim Clark voiced his concerns about chronic aerospace supply issues, calling on manufacturers to take accountability. “I am quite weary of the ongoing discussions about the supply chain; you (manufacturers) are the supply chain,” he remarked during a press briefing in New Delhi. Despite his acknowledgment of the need for a third manufacturer in the industry, he noted that the existing duopoly is unlikely to dissolve anytime soon.

Furthermore, United Airlines CEO Scott Kirby has echoed similar sentiments, advocating for increased competition within the aerospace sector.

Neto mentioned that he recognizes significant opportunities for Embraer in India, not just in the commercial sector but also in military aircraft, stating he is willing to establish a final assembly line in the country, provided a substantial order is secured from local airlines.

“We are receptive to discussions, but we require a significant scale of deliveries in India to make business sense. However, we are open to pursuing this,” Neto affirmed.

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