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Embraer CEO says jet maker studying possibilities for a new aircraft

Brazilian plane maker Embraer SA is studying the market and new technology that could warrant it building an all-new jet, CEO Francisco Gomes Neto told CNBC.

A new airplane could help the airplane manufacturer compete with much larger rivals Airbus and Boeing, which deliver hundreds of jets a year compared with Embraer’s dozens of aircraft.

But Gomes Neto noted that no decisions have been made yet.

“At this point in time, we don’t have concrete plans to go to a big narrow-body,” he said, adding that the studies for new engine technologies, avionics and potential demand are “to be prepared.”

In the meantime, Gomes Neto said Embraer is focused on improving results and selling its regional planes, which won orders earlier this year from American Airlines, manufacturing its E2 jet and “delivering what we promise” customers.

The FAA approved a freighter version of its E190 passenger-to-freighter converted jet earlier this month, helping clear the way for its commercial introduction.

“This is maybe the advantage we have: We have a great product [that’s] available,” Gomes Neto said.

Both Airbus and Boeing are struggling to ramp up production and deliver aircraft on time in the wake of the pandemic. Boeing has the added challenges of a safety crisis and a machinist strike.

Boeing once had plans to take control of Embraer’s commercial jet business but ended those discussions in early 2020. Last month, Embraer said Boeing would pay it $150 million over the scuttled plan.

Like its competitors, Embraer is facing supply chain strains coming out of the pandemic, and the company is taking a more in-depth look at delivery capabilities.

Engines, hydraulic valves, cabin interiors and components for them are some of the areas where it has been difficult to ramp up production from suppliers, Gomes Neto said. He added that he expects supply chain problems will likely ease in 2026.

This post appeared first on NBC NEWS

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