As Embraer emerged from what it might want to consider a forgettable period in its history when a deal to sell 80 percent of its commercial airplane division to Boeing fell apart four years ago, the Brazilian company soon turned its attention to restoring the forward-looking trajectory of the entire business. Today, as its U.S. nemesis struggles, the OEM appears to have rediscovered its mojo, to which its controlling interest in eVTOL developer Eve Air Mobility, the resilience of its business aviation division, and the market momentum achieved by its C-390 military transport attest.
Since entering service with the Brazilian air force in 2019, the C-390 program has seen strong demand from Europe, where Portugal (five aircraft), Hungary (two), Netherlands (five), Austria (four), and the Czech Republic (two) have placed orders or entered final negotiations for the type. The twin turbofan model has presented viable competition to both the Lockheed Martin C-130 and Airbus A400M aircraft.
Hungary’s first example flew for the first time this past February and took delivery of the medium-size transport in April. That same month Embraer signed a memorandum of understanding with Saab to explore partnership opportunities, including pitching the C-390 to Sweden as a replacement for aging C-130s.
Other recent customers include South Korea, which in December signed for an undisclosed number of C-390s as part of the country’s Large Transport Aircraft (LTA) II public tender. Now, talks with India led to an MOU signed in February between Embraer and Indiaan conglomerate Mahindra to collaborate on the country’s Medium Transport Aircraft (MTA) procurement project under the auspices of Prime Minister Narendra Modi's Make in India policy.
E-Jets Gain Market Share
These initiatives apart, Embraer has not abandoned its ambitions in the air transport sector. Group CEO Francisco Gomes Neto told reporters at a mid-June briefing in Brazil that the group's E-Jet line up of narrobodies now holds commanding position in the 76- to 150-seat commercial jet segment benefitted further from “delivery constraints” haunting larger narrowbodies.
“We have a great opportunity, a great solution for airlines to add capacity more quickly to their fleets,” he said. “The E175 is the workhorse in the regions of aviation in the United States. It is a very robust and mature product, carrying more than five million passengers every month. From LaGuardia in New York, one of four flights is performed with our E175. And since they entered into service, our teams have been able to improve fuel burn by 6.4%.”
Neto expressed particular satisfaction with the most recent sale of its E175s, which comply with the scope clauses in the U.S. pilot labor market. “We were very happy with the big order in early March from American Airlines covering a firm order for 90 E175s plus 43 purchase rights,” he noted. Having collected orders for the E175/E190 families from 18 airlines, Embraer plans to deliver the first of American’s 76-seat jets next year, added Neto.
Also speaking at Embaer’s main facilities in Sao Jose dos Campos, Embraer Commercial Aviation marketing vice president Rodrigo Silva e Souza issued a preview of plans for improvements to the E175 to be introduced at the Farnborough show. Already leading the 76-seat regional jet category, the E175 has managed to remain so even as mainline pilot unions refuse to allow an increase in the weight limitations, foiling Embraer’s attempt to market an E2 version of the airplane. Silva said its latest plans call for interior improvements, the addition of further connectivity options, and more avionics functionality.
“This we see as a key platform for commercialization and we want to keep it competitive,” he explained. The company’s pair of E2 models, the E190 E2 and the E195 E2, have regained sales momentum around the globe and now operate in every continent, noted Silva.
Operators have deployed the E2s in two key areas—first, as a vehicle to add capacity to regional fleets and, second, to complement large narrowbodies. “They use the E2 together with large narrowbodies, either to increase frequency or to expand the network to feed the hub, for instance,” reported Silva.
The Geared Turbofan Effect
On the long-term reliability problems that have emerged on all variants of the Pratt & Whitney geared turbofans, the PW1900Gs powering the E2 jets haven’t felt some of the worst wear effects experienced by the Airbus A220 and A320neos due to the Embraer jets’ lower weight and thrust requirements, according to Silva.
“I wanted to emphasize that most of the issues will have the solutions addressed this year,” he reported. “We will have, let's say, addressed them all for normal operation. We have a solution in place that extends the time on wing by 75%.
“In terms of inflight shutdowns, which is a critical, we have experienced 15 times [fewer] events than our competitors. So the experience of issues of GTF on the E2 is a lot less impactful, let's say, than in other platforms.”
Of course, the company’s business jets are also impactfully holding their own, with Neto claiming the entry-level Phenom 100 as the “most popular jet” in its category. With the launch of the 100EX model late last year, new customers will benefit from an interior that weighs 190 pounds less than the base Phenom while featuring upper tech panels, wider seats, increased use of more sustainable materials, and flush-to-the-wall tables. It also makes standard the previously optional side-facing fifth seat and a belted lavatory.
Neto also took note of the market performance of the Phenom 300E, calling it the most-sold light business jet for 12 years in a row. Gaining market share “year after year,” Embraer has delivered more than 730 of the light jets over the past decade.
Air Taxis Could Reshape Urban Transportation
Separately, Embraer hopes its work in the advanced air mobility (AAM) market will yield a similarly impressive sales performance by the eVTOL concept under development by publicly-listed Eve Air Mobility, in which Embraer is the dominant shareholder. Eve CEO Johann Bordais told reporters that while the program remains on schedule, exactly when first flight takes place hinges in part on a “general alignment” of the various certification authorities, namely the FAA, EASA, and Brazil’s ANAC.
“I think it’s just for the best,” Bordais said of the focus on the alignment of regulatory approvals. “When it comes to safety, we're really talking about putting people in the air in an air taxi operation… this is what we're looking at. All of us have these interests because we're creating something new. And, by definition, you want to make sure it works from the very beginning. So we’ll do all it takes to make sure it will be safe operation. I think this is the key word of the whole [discussion].”
Acknowledging the pressure on Embraer’s schedule as other eVTOL developers appear closer to realizing the ultimate goal of entry into service, Bordais also stressed the need to take the time to ensure operational readiness. “It's not about being the first one. I think it's about being the right one,” he said. “And by being the right one, we just need to do it at the right time…You don't want to rush anything.
“By the way, this schedule and the timeline that we gave is the same one that we gave back in 2017, when the spinoff of Eve out of the Embraer-X incubator [took place],” added Bordais, “We want to make sure that we deliver the right product safely and also right for the operator. Let's not forget the operator. He’s going to have to learn how to operate a hundred percent electric [powered vehicle] and how he puts it in a new operation or a current operation.”