Embraer should stay for a long time with the commercial aircraft portfolio restricted to the E190-E2, E195-E2 and the first generation E175 models.
The Brazilian planemaker has two other projects in development, but which are “frozen” at the moment, the E175-E2 and the next generation turboprop that still does not have an official name.
However, the situation should not change anytime soon, as explained by Francisco Gomes Neto, CEO of Embraer, in an interview during the presentation of the 2022 results.
The chief executive said that the E175-E2 will remain suspended as long as the scope clauses of US airlines do not change.
The aircraft was supposed to replace the E175, the company’s greatest commercial success, however, the manufacturer decided to bet on a jet with greater capacity and weight, considering that the agreement between the US pilots’ unions and major airlines such as American, Delta and United , would be changed.
Currently, regional airlines serving major carriers cannot operate planes with more than 76 seats and a maximum takeoff weight of 39 tonnes (86,000 pounds). The limits have a clear reason, preventing the three companies from transferring important routes to their affiliates by paying lower wages to the crew.
The problem is that the E175-E2 is a bigger and heavier plane, something that cannot be changed without a lot of engineering work.
And that there is no sign of change on the horizon since there have been several renewals of agreements without the clause having been changed.
On the other hand, the US regional aviation market has undergone a transformation due to the shortage of labor.
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Many companies have raised salaries trying to contain the lack of pilots and flight attendants, but eroding their already low profit margins. The reflection of this phenomenon may influence the future of the E175-E2.
Despite this, the situation is relatively comfortable for Embraer since today there is no direct competitor for the E175.
Bombardier sold the CRJ family to Mitsubishi, which is not considering resuming production. At the same time, the Japanese company abandoned the expensive SpaceJet program, which would be a technically worthy competitor to the E2.
Turboprop runs slowly
Gomes Neto was also asked about the new generation turboprop project, an aircraft that should offer two versions, with 70 and up to 100 seats, and operate at a very low operating cost.
Embraer’s CEO confirmed that the program is practically at a standstill while the engine suppliers does not present a solution that fits the expected performance requirements.
According to him, Embraer continues to study the project, but without establishing short-term goals. Even before the suspension, the company intended to launch the project in 2023.
Investment in the turboprop project represented 15% of the total allocated to research and development in 2022, but Embraer recognized that this share will drop significantly this year.
Instead of a turboprop, the company is investing in Energia, a family of sustainable aircraft that will use a hybrid system of electricity and hydrogen.
