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Commercial Jets

  • EMB 100 Bandeirante
  • EMB 110 Bandeirante
  • EMB 120 Brasilia
  • CBA 123 Vector
  • ERJ 135
  • ERJ 140
  • ERJ 145
  • ERJ 145 XR
  • EMBRAER 170
  • EMBRAER 175
  • EMBRAER 190
  • EMBRAER 195
  • E-Jet E2
  • Defense Systems

  • EMB 326 AT-26 Xavante
  • EMB 312 AT-27 Tucano
  • EMB 314 AT-29 Super Tucano ALX
  • AMX
  • EMB 111 Bandeirante Patrulha
  • EMB 145 AEW&C
  • EMB 145 MP
  • KC 390
  • Executive Jets

  • EMB 121 Xingu
  • Legacy 450
  • Legacy 500
  • Legacy 600
  • Legacy 650
  • Lineage 1000
  • Phenom 100
  • Phenom 300
  • Phenom 500
  • Praetor 500
  • Praetor 600
  • Boeing announced on 25 April 2020 it was pulling out of the $4.2 billion deal to acquire the commercial plane division of its Brazilian rival Embraer. The companies had planned to form a joint venture in which Boeing would take an 80 percent stake in that division. Boeing said Saturday it was exercising its right to pull out of the preliminary deal reached in July 2018. It said in a statement, "Embraer did not satisfy the necessary conditions." Marc Allen, the Boeing executive who led the joint venture plan, said "Boeing has worked diligently over more than two years to finalize its transaction with Embraer," He said that over the past several months the companies held extensive talks on what he terms unsatisfied conditions in the initial accord.

    On April 25, 2020 Embraer announced that it "believes strongly that Boeing has wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price. We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems."

    Embraer and Boeing welcomed approval 11 January 2019 by the Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets. The government's approval comes after the two companies last month approved terms for the joint venture of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent.

    The companies also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent. Once Embraer's Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents. The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.

    The Boeing Company and Embraer confirmed December 22, 2017 that the two companies are in talks about a possible business concentration, whose bases were still the subject of debate. There were no guarantees that these talks will result in a transaction. Boeing and Embraer had no intention of making any additional comments about these talks. Any type of transaction would be subject to the approval of the Government and the regulatory authorities of Brazil, the Boards of Directors of both companies and the shareholders of Embraer.

    Buckingham Research Group analyst Richard Safran said he was skeptical about a Boeing-Embraer combination, given the challenge of securing approval from the Brazilian government. "We don't think the Brazilian government will look favorably on foreign ownership (in this case U.S.) of a strategic asset like ERJ," he said. Boeing's potential buy of Embraer could be priced in the $6 billion to $9 billion range, a premium to Embraer's valuation of $3.7 billion.

    There was a dispute with the US Department of Commerce to impose import tariffs for aircraft made by Bombardier. Boeing had received billions of dollars of US government aid through generous military contracts and an additional $ 8.7 billion from Washington State. This has caused Bombardier to ally itself with the biggest competitor of Boeing, which is Airbus. Recalling that neither Boeing nor Airbus produce the same type of aircraft that Embraer and Bombardier produce and, as Embraer is the direct competitor of Bombardier (now Airbus' ally), this Boeing move towards Embraer was a natural step in the fight between the two giants.

    Boeing is willing to find a solution that meets the interests of both companies and at the same time, has the support of the Brazilian government and shareholders. The aim, he said, is to increase the competitive power of the two companies in the world aviation market. The privatization process of Embraer also faced challenges. There is a new positioning in the world aviation market and big manufacturers such as Boeing, Airbus, Bombardier and Embraer have to respond to this.

    Boeing is interested in a partnership with Embraer that goes beyond commercial aviation and also reaches the areas of Defense and world services, but the format of the association depends on negotiations with the Brazilian government.

    Political obstacles have eased since a spy scandal hurt Boeing in the choice of the Brazilian government's purchase of fighter jets in 2013. Brazil ended up opting for the Saab Gripen jets. But President Michel Temer's rise to power - and his liberal-economic agenda, with pro-market policies, privatizations and the reduction of the state's role - boosted Boeing.

    The October 2017 deal, under which Airbus will take control of the Canadian C-series aircraft project, has left Embraer exposed with its smaller E-series aircraft with possible competition from China on its way.

    Embraer - Empresa Brasileira de Aeronautica S.A. - is Brazil's largest aircraft manufacturer. Embraer is the world's fourth largest civilian airplane maker and Brazil's top exporter. Embraer's headquarters is located in Sao Jose dos Campos, in the State of Sao Paulo. Embraer leads a group with widely diversified interests in the aerospace field. The group's activities entail the design, development, production and marketing of a range of turboprop and jet aircraft for regional airline and military use, turboprop aircraft for general aviation, corporate and agricultural utilization, and aviation-related mechanical and hydraulic systems. Embraer is a major buyer of equipment and parts for its own production line, as well as a major international supplier for the aviation market. The United States is its largest customer, and largest supplier of parts. The US has a percentage of 65% on Embraer purchases.

    Embraer was founded in 1969. The year 1971 saw the first flight of the Xavante, a trainer and attack / photo reconnaissance aircraft. Produced from 1971 to 1982, it was manufactured under the license of the Italian manufacturer Aermacchi. By the mid-1980s, Embraer had become the largest aircraft manufacturer in the developing world, with sales of more than 4,000 aircraft. It has encountered great success with its Bandeirante and Brasília models, sold to the United States and other foreign countries. In 1988, at its height, it employed more than 12,000 workers. The Brazilian government owned about 5 percent of the company but controlled most of the voting stock. The government supported Embraer with generous interest rates on its loans, a reinvestment of profits into research and development, and purchases of its aircraft.

    Embraer was founded as a government initiative and then privatized in 1994. The company currently employs over 11,000 people and is publicly traded on the New York and São Paulo Stock Exchanges. Brazilian interests - investment conglomerate Cia. Bozano and pension funds PREVI and SISTEL - control 60% of the voting shares.

    A leading group of European aerospace companies - Dassault Aviation, EADS, Snecma, and Thales - jointly owns another 20 percent. Their investment aids the introduction of new technology and products while enhancing our prospects in world markets. The group paid about USDOLS 209 millions for 20 percent of the voting shares in Embraer. With the deal the French companies could gain an advantage in the bidding process for renovating Brazil's fleet of fighter jets. Embraer will gain access to the strong technological and commercial networks of the French, especially those of Dassault. They will also improve their position in Latin America's defense market, with the potential for USDOLS 8 billion in contracts in Brazil alone.

    Embraer has 650 units of Tucano aircraft in operation in 15 different Air Forces around the world. Following the success of the EMB-312 Embraer has designed the EMB-314 Super Tucano. Embraer has made several improvements to its production line to enhance the training and operational capabilities of its aircraft.

    The EMB-120 Brasilia, another aircraft manufactured by Embraer has become a mainstay of short-haul routes worldwide. To date, it has logged over 5.5 million flight hours and carried more then eighty million passengers. Embraer has delivered more than 279 EMB-120 to 26 customers in 14 countries.

    Embraer also entered the market for 30 to 70 passengers aircraft, with ranges from 800 to 1,700 nautical miles with the ERJ-135 and ERJ-145 models. Standing behind the aircraft are Embraer's modern managerial tools and partnerships with well-known manufactures of aerospace structures, electronic system and parts such as Rolls Royce/Allison Engines and C&D Interiors (U.S.), Gamesa (Spain), Sonaca (Belgium) and Enaer (Chile). Production of ERJ-135 and ERJ-145 relies on 800 suppliers providing more than 40,000 parts. Early in 1999, Embraer announced the production of the ERJ-190 and ERJ-170. This represented their entrance into the market for 70 to 110 seat airplanes.

    Embraer achieved profitability in 1998, with earnings of USDOLS 109.2 million. They also had a substantial increase in gross revenue to USDOLS 1.3 billion, a backlog of firm orders of USDOLS 4.1 billions, and increase in shareholders' equity to USDOLS 345.7 millions. In 1998, Embraer created more than 2,000 new jobs and expected to create 3,000 more jobs with the launch of the new ERJ-170 and ERJ-190. Embraer profitability is expected to continue to grow mainly because of the ERJ-170, ERJ-190 and also the ERJ-135 and ERJ-145. Embraer is among the most productive aircraft manufacturers in the world, with USDOLS 227,000 in revenue per employee. At the 1999 Le Bourget Air Show in Paris, Embraer signed the largest contract for a regional aircraft in market history. Swiss Crossair ordered 200 jets, a market of around USDOLS 4.9 billions.

    The company has applied its success with regional aircraft to the defense market. New products based on the ERJ 145 platform - such as the airborne early warning EMB 145 AEW&C, the remote sensing EMB 145 RS/AGS, and the maritime patrol/anti-submarine warfare EMB 145 MP/ASW (P 99) - have enormous potential in the underserved international defense market. Other successful products include the Super Tucano/ALX and the new AMX-T trainer.

    The actual manufacture of an aircraft consists of three principal stages: fabrication of primary parts, assembly of major components and final assembly. Primary parts include metal sheets and plates (produced from die-cast molds, stretch forming or various chemical treatments), parts produced using computerized and non-computerized machines, and pre-fabricated parts. The primary parts are then joined, or mated, with one another to produce the aircraft's major components, which are in turn joined to create the aircraft's basic structure. In the final assembly stage, the aircraft's various operating systems (such as wiring and electronics) are installed into the structure and tested.

    Production facilities for our commercial, executive and defense aircraft are located in São José dos Campos in the State of São Paulo, Brazil. Embraer reduced the aircraft production time of aircraft in the ERJ 145 family from eight months in 1996 to 3.1 months in 2004. From December 31, 1999 to December 31, 2000, we increased our production from 12 to 16 ERJ 145 family aircraft per month. At March 31, 2001, our production rate was 16 aircraft per month. In response to decreased market demand after the September 11, 2001 terrorist attacks and the related global economic slowdown, Embraer decreased production to 11 aircraft per month and, in 2005, decreased it further to nine aircraft per month.

    EMB 120

    ERJ 145

    E-Jets - Embraer 170 / 190

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    Page last modified: 31-05-2020 20:39:33 ZULU