Backed by strong demand for its Phenom and Praetor models, Embraer is looking to expand its global aftermarket service capabilities with an increased focus on building up its owned service center network.
“We do have plans to expand our owned service center network, as many of our customers prefer to come to the OEM for maintenance," Embraer v-p of worldwide customer support and aftermarket sales Marsha Woelber told AIN ahead of NBAA-BACE 2023. "We believe the need for capacity in the market for maintenance slots will support growth.”
While more resources will be directed toward company-owned service facilities, the Brazilian airframer doesn't intend to abandon the use of authorized third-party maintenance repair and overhaul providers. “Embraer has relied on a large authorized service center network in the past to give our customers the most flexibility during their ownership experience," Woelber said. "We will continue to work with these entities to manage our growth."
Embraer’s support and services business unit—which caters to business aviation and airlines, as well as military and agricultural customers—is already at above-pre-pandemic levels with a $2.7 billion backlog in the second quarter, Woelber said. The segment reported revenue of $1.27 billion last year, representing year-on-year growth of 12 percent, and 28 percent of total Embraer revenue. The services unit and the executive aviation unit outperformed all other business segments of the group.
In the first half of this year, Embraer’s services and support business revenue accounted for 33.1 percent of company revenues. Growth overall is supported by strength in aircraft sales and continued investment in aftermarket infrastructure and products, Woelber noted.
Embraer does not reveal the specific mix of the aftermarket business and does not disclose how much revenue it derives from support to business jets, but the OEM has more than 1,660 executive aircraft flying and the firm order backlog for Phenoms and Praetors at the end of the June was $4.3 billion. Its book-to-bill ratio stood at 2:1, a level that Embraer CEO Francisco Gomes Neto described as “very comfortable.”
Last year, the airframer delivered 102 executive jets, 66 light jets, and 36 midsize jets. The guidance for this year is to deliver 120 to 130 executive jets.
“Growing Embraer services and support capabilities is a priority for the company,” Woelber said. “First, we are increasing our investment in digital infrastructure, aiming to boost efficiency and improve our customer experience. Examples include the development of tools to accelerate RTS, like Beacon, and Smart Trouble Shooting—a platform for operators, OEMs, and maintenance providers to collaborate seamlessly for faster aircraft return to service.”
According to Woelber, Smart Trouble Shooting reduces troubleshooting time by 30 percent and decreases labor expenditure by 9 percent.
In addition, Embraer is expanding staff in its Customer Care Center to support the growing fleet and adding leadership positions in the U.S. market to respond to the growth in this region. “Most of our customer base is in the U.S. and our investment in service infrastructure—like full-flight simulators and MRO—is defined based on the aircraft and customer density in the region,” Woelber said.
As part of expanding its training footprint, Embraer this month added an Embraer Praetor 500/600 full-flight simulator in Orlando in cooperation with FlightSafety International. Six months ago, the third full-flight simulator for Phenoms in Las Vegas went online. This facility is run by the Embraer-CAE joint venture ECTS. An additional Praetor full-flight simulator will come online in Europe in mid-2024.