Embraer No Longer Interested In Selling Commercial Arm

Arjan Meijer, the new president and CEO of Embraer, stated today that the Commercial Aviation division of the company is no longer out for sale. After the Boeing-Embraer deal debacle, the Brazilian company is taking its commercial arm off the shelves and is focusing on the future.

Embraer Getty
Embraer will not sell its commercial division. Photo: Getty Images.

What did Arjan Meijer say?

Arjan Meijer became the president and CEO of Embraer in June. He has his headquarters in Amsterdam, and it has the task of helping Embraer come out of two crises. Obviously, the Brazilian manufacturer is hurt by the current COVID-19 pandemic. So far, it has only delivered 16 commercial jets.

But also, the termination of the Boeing-Embraer deal has deeply affected the plans of the Brazilian company. Today, in a webinar with Aviation Week Network, Meijer thoroughly explained Embraer’s current status. He said,

“We have many questions about the Boeing deal as to whom will Embraer sell the commercial aviation department. Let me take that out of the air right now: the commercial aviation is not for sale. It’s out of the shop window. We have decided to integrate it again into Embraer. We’re now one organization. So, commercialization will not be sold, but we are looking for partners on programs.”

In 2018, Boeing and Embraer announced they would create a joint venture. This new company would be an 80-20% deal, with Boeing taking the largest share. In what was advertised as Boeing Brazil, both companies would work on developing the 90-120 seat aircraft market and a brand new turboprop.

Stay informed: Sign up for our daily aviation news digest.

Bangkok Air ATR-72
Embraer thinks there’s a good market for the turboprop aircraft. Photo: Getty Images

Looking into the turboprop market

Embraer is still very interested in the turboprop market. This market is dominated at the moment by ATR, but there’s a lot of room for more players. Last year, Embraer expected 2,320 turboprops deliveries between 2019 and 2039. Now, with the COVID-19 pandemic, there will be a reduction in the market, although it won’t be that big.

“We think there’s a good market in the next ten years for turboprops, in the 70 to 100 seat range. We could bring a turboprop to the market, which would be more efficient than the competition, would have a much better noise profile and a much better passenger appreciation. The case is definitely there,” said Meijer.

Nevertheless, the future Embraer’s turboprop is still on the drawing board. Before there’s something concrete to these plans, Embraer must look for a partner to help them launch the program. Once that’s complete, there will be a market.

“I think there’s also a big customer base that would love to work with Embraer if we go to the turboprop (market). We’ll have to see what the future brings. The first step for us is to look for a partner that wants to do that with us.”

If it happens at all, maybe we could see an Embraer turboprop in the next five to ten years.

Coronavirus-Mitsubishi-Spacejet
Mitsubishi’s delays are leaving Embraer in a virtual monopoly for the regional market. Photo: Getty Images.

Mitsubishi will come back

Finally, Meijer talked about the current environment for regional aircraft. Embraer basically has a monopoly at the moment in this segment. Mitsubishi was poised to be a fierce competitor but has had so many stepbacks; their future is currently uncertain.

Embraer’s CEO said that it is sad that Mitsubishi had to delay its program even further. Making an aircraft from scratch and putting it into the market is a considerable effort, he added.

But Embraer is not taking anything for granted. The competition is pushing Embraer to the limits, Meijer said. When Mitsubishi’s program finally comes about, the Embraer E175 E2 will be in the same segment and will be an aircraft that competes with the Japanese offer, he said.

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

18 Shares: