Summary
- CEO confirms Embraer is capable of larger aircraft, but no concrete plans yet.
- Compared to Airbus and Boeing, the shorter wait times for E-Jets could attract more airline orders.
- Embraer aims to become a $10 billion company by the end of the decade before considering new product lines.
Over the past few weeks, the rumors regarding a new narrowbody from Embraer have ramped up significantly. Reporting from the likes of the Wall Street Journal and Forbes, suggested something was being cooked up imminently. Brazil Journal went so far as to say a plan would be revealed as soon as next year.
But is there any truth in the rumor?
No concrete plans at all
Speaking today at Embraer’s annual media days in Sao Jose Dos Campos, the CEO of the company, Francisco Gomez Neto, was asked about the rumored plans to take on Boeing and Airbus with a new narrowbody product. His initial response said it all,
“We were expecting this question.”
Photo: Joanna Bailey | Simple Flying
Continuing, the CEO noted that it’s certainly within Embraer’s current capabilities to move into larger commercial aircraft but that there are no concrete plans to do so anytime soon.
“In terms of capabilities, we have the capability to do bigger things.”
“We are always studying opportunities for new products, not only in commercial but in all other business units as well. We can do different products, but at this point in time, we don’t have concrete plans to do a bigger airplane.”
Photo: DLeng | Shutterstock
The CEO noted Embraer’s target to become a $10 billion company by the end of the decade in terms of revenue. Getting to that goal will put the company in a better position to contemplate new product lines, as Gomez Neto concluded,
“By doing that, we will further improve our financial performance and will generate more cash. Then we will be in a better condition to talk about the future.”
![KLM Royal Dutch Airlines Embraer E195-E2 taking off](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/06/shutterstock_2471546333-1.jpg)
Related
Embraer Reaches Record $21.1 Billion Order Backlog
2024 is shaping up to be a good year for Embraer as its order backlog grows while it delivers a record number of aircraft.
Opportunities for airlines to add capacity
While the new narrowbody might be some way off or not coming at all, Embraer was quick to point out the advantages it holds in the current commercial aviation market.
With both Airbus and Boeing struggling to meet their production targets and backlogs of years for new aircraft orders, Embraer’s agility is an attractive proposition. CEO Gomez Neto explained,
“Because of the constraints in the delivery of big narrowbodies in the future, we are a great opportunity and a great solution for the airlines to add capacity more quickly to their fleets.”
Photo: Embraer
To put this in perspective, American Airlines ordered up to 133 E175s in March this year. Deliveries of those are planned to start next year, 2025.
![LAM Mozambique Embraer 190](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/01/shutterstock_1203871651.jpg)
Related
Embraer E2 Deliveries More Than Doubled In 2023
39 E2 jets were delivered in 2023.
Forecast International estimates Boeing’s regular backlog to be over 11 years, and around the same for Airbus, based on current production. In real terms, as an example, easyJet ordered narrowbodies from Airbus last October, but doesn’t expect to begin receiving these until 2029.
Buying from Embraer, it seems, could mean purchasing a plane this year and having it delivered the next. For airlines struggling to add capacity fast enough to keep up with demand, this could be a crucial attractor that sees more operators turning to Embraer.
Do you think more airlines will order E-Jets against the backdrop of long wait times at Airbus and Boeing? Let us know your thoughts in the comments.