Summary

  • Embraer plans to reduce production cycles of all aircraft types by 30% by the end of 2025, improving overall efficiency and increasing delivery outputs.
  • The company aims to evenly distribute aircraft deliveries throughout the year, moving away from the year-end concentration that creates productivity and cash generation challenges.
  • Embraer is investing in AI tools, organizational efficiency, and customer relationships to optimize business opportunities and return on investment, with the potential for substantial growth in production and revenue.


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Embraer’s Chief Executive Officer (CEO), Francisco Gomes Neto, said the company is implementing several projects to better distribute and execute the production and deliveries of new aircraft in the future, reducing production cycles by up to 30% by the end of 2025.


Reducing production cycles

The Brazilian manufacturer is looking to reduce the production times of any type of aircraft by 30% until the end of 2025. Francisco Gomes Neto said this during the company’s Media Day held in New York this week. Embraer produces commercial jets, such as the E195-E2, and private jets, such as the Lineage 1000.

Embraer Phenom 300 Business jet aircraft

Photo: Ryan Fletcher | Shutterstock

Achieving this will help the company to improve overall, reduce the working capital, and increase the delivery outputs throughout the year. In 2023 alone, even with the difficulties faced by Embraer and its supply chain, it has been able to reduce production times by 20%, the company’s CEO said.

Read more: Embraer deliveries increased by 30% in 2023’s third quarter

To further improve in the future, the company is investing in artificial intelligence tools, addressing the organization’s efficiency, and improving the relationship with its customers to generate more business opportunities and optimize the corporate capital footprint. Neto said,

“We have the potential to grow the production and revenue substantially in the next few years, and we want to do that without investing too much. We want to invest only when it is really necessary, after exploring all the alternatives to remove waste and improve productivity. This will help us a lot in terms of return on capital invested.”

Embraer wants to deliver planes throughout the year evenly

If you are an avid follower of aviation news and aircraft deliveries, you are definitely aware that most airlines receive their new planes in the last quarter of every year. As the year closes down, OEMs such as Embraer, Airbus, and Boeing rush to deliver new aircraft to their customers and meet their full-year delivery targets. For instance, Airbus delivered a total of 166 jets in the final two months of 2022.

Embraer is looking to shift this narrative and evenly distribute the deliveries throughout the year. The Brazilian company wants production stability, as Gomes Neto said during the press conference.

“In the past few years, we have seen a higher concentration of deliveries in the second half of the year, especially in the last quarter of the year. This is not good for the productivity of the company. This is not good for the cash generation of the company. This initiative will help us to better distribute the production and the deliveries throughout the 12 months of the year.”

Gomes Neto said the main reason for the year-end delivery concentration is due to supply chain concerns and some internal issues the company is looking to address.

An Azul Embraer E195 E2

Photo: Guilherme Amancio Moreno | Shutterstock

Embraer expects to have some challenges with the supply chain in 2024, as it is not stable yet following the COVID-19 pandemic. “But we believe that from 2025 onwards, we will be able to distribute the production deliveries throughout the 52 weeks of the year,” he said.

In 2023, Embraer has delivered a total of 105 aircraft (39 commercial aircraft and 66 executive jets). This is a 33% increase compared to the same period last year, when 79 jets were delivered up to the third quarter.

What do you think of Embraer’s initiative? Let us know in the comments below.

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