Plane maker Embraer CEO Optimistic About Company’s Future Amid Supply Chain Struggles

The CEO of Embraer in Brazil  on Friday noted that while supply chain challenges for Plane makers have been improving, some hurdles still remain. 

Francisco Gomes Neto speaking to reporters at an event in Sao Jose dos Campos, where the company is based at, expressed optimism about the company’s current position after overcoming difficult years. 

Last month, Neto said the company’s estimate for 2024 aircraft deliveries would be higher if not for supply chain bottlenecks frustrating planemakers.

In the past few years, aircraft manufacturers and their suppliers have encountered challenges, such as significant drops in new aircraft orders and disruptions in the supply chain due to the COVID-19 pandemic in 2020. As airlines adapt to the resurgence in air travel demand since 2021, the capacity of aviation manufacturers to supply new aircraft and components is crucial for airlines striving to sustain and expand their operations.

Credit Rating agency, ICRA in its report released in March 2024 also spotlighted the expected delay in aircraft deliveries amid the supply chain challenges being faced by the aircraft and engine makers.

Highlighting that Indian airlines have a total order book of around 1,700 aircraft (more than double the size of the current fleet), the deliveries, however, are likely to be gradual, spanning over the next decade, and will also be impacted by the current supply chain challenges encountered by engine and aircraft Original Equipment Manufacturers (OEMs), the ICRA report said.

Embraer striving to sustain and expand its operations despite the supply chain bottlenecks that are affecting aircraft deliveries, is now looking at investing around 2 billion reais ($390.9 million) this year, and hire over 900 people. Their investment includes technology development for the “flying car” by subsidiary Eve, as well as enhancing service, defense, and efficiency projects. 

The world’s third-largest planemaker behind Boeing (NYSE:BA) and Airbus, Embraer projects an increase in executive jet deliveries to 125-135 and commercial aviation deliveries to 72-80 planes this year.

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