Embraer celebrated its 30th anniversary since its privatization on December 7, 1994. The aircraft manufacturer began as a state-owned company created by the Brazilian Air Force to produce the Bandeirante turboprop.
The aircraft had been developed by a team led by then-officer Ozires Silva, who became its first president.
After more than two decades producing aircraft such as the Xavante trainer jet (MB-326 under license), the EMB-121 Xingu and EMB-120 Brasilia turboprops, and the AMX attack jet, in partnership with Italian manufacturers, Embraer found itself at a crossroads.
The failure of the CBA-123 project, a turboprop to replace the Bandeirante and which had a configuration with pusher propellers, increased the company’s debts.
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At the same time, Embraer was unable to come up with a final design for a 50-seat regional jet, the EMB-145, and was at risk of closing its doors.
The solution found at the time was to privatize the company, but with the Air Force maintaining a golden share, which allowed it to restrict some actions for national security reasons.
Bought by a consortium of four companies, Embraer began a path that transformed it into the 3rd largest producer of commercial aircraft in the world and expanded its range of products with a line of executive jets and military aircraft such as the C-390 Millennium.
New aircraft from 2030 onwards
The next step, however, should only occur from 2030 onwards. That is when Embraer intends to define what its new products will be, according to CEO Francisco Gomes Neto.
In an interview with the newspaper Folha de Sao Paulo, the CEO tried to explain again the rumors about an aircraft that would rival the Boeing 737 and the Airbus A320.
“I didn’t say that Embraer is considering making a larger plane. What I’ve been saying is that it is always studying alternatives and new products,” Gomes Neto clarified.
He also said that the company is preparing to define which product or products will be launched, but that will start in 2030. Until then, the plan is to focus on the current portfolio.
Boeing took advantage of the partnership to hire talent from Embraer
The CEO also commented on the failed partnership with Boeing, which took about three years to build, but was abandoned by the US company shortly before the US$4.2 billion deal was sealed.
Soon after the end of the agreement, Boeing opened an engineering office near Embraer’s headquarters in Brazil and began to seek out talented professionals from the company and other suppliers in the region.
“We were very upset about this situation because Boeing, during the process of the potential deal, got involved with Embraer, met engineers, knew who was good, and after it didn’t work out, hired specific people from within the company,” he said.
A lawsuit in the US courts condemned Boeing for ending the deal, but the amount of compensation (US$ 150 million) disappointed the financial market. Gomes Neto revealed that the amount has already been paid and covered part of what Embraer spent during this period.
Despite the problems in the supply chain, especially engines and aerostructures, the executive who has been in the position since 2019 was optimistic about the coming years.
“We’re going to have a good year in 2024 and an even better year in 2025,” he predicted, believing that Embraer has the potential to reach annual revenue of more than US$ 10 billion this decade.
