June 10, 2019, © Leeham News: Embraer is in a holding pattern of sorts.
It can’t coordinate with Boeing about synergies until these approvals come.
Its leadership is identifying areas that, from its perspective, can lead to synergies.
Some key campaigns for the E-Jet E2 appear to be on hold while customers wait for Boeing and Embraer to join in order to see how pricing may be reset, competition with the Airbus A220 shapes up, what synergies between the E2 and Boeing’s 7-Series product lines might emerge and how Embraer’s Services unit integrates with Boeing Global Services.
June 10, 2019, © Leeham News: Embraer is 50 years old Aug. 19.
This must be the classic case of mixed feelings. By the end of the year, if regulators approve, the marquis business unit, Commercial Aviation, will be spun off and the Embraer name for it disappears into Boeing Brasil-Commercial (BB-C).
Boeing will own 80% of the new joint venture and Embraer retains 20%. Boeing has the governance and chairman. Embraer’s CEO of Commercial Aviation becomes president and CEO of BB-C, but the direction now will clearly be set by Boeing.
Sixty percent of Embraer’s services unit goes into BB-C.
Embraer and Boeing also created a second JV, for the KC-390 program. Embraer retains 51% and Boeing gets 49%.
Embraer retains full control over the remaining defense and business jet units.
Officials put a “best face” on the pending changes at Embraer’s pre-Paris Air Show briefings May 27-29, but they really could not mask the uncertainties and, to some degree, resignation about the future.
By Bjorn Fehrm
June 5, 2019, © Leeham News.: The Air Current broke the news earlier today Mitsubishi Heavy Industries (MHI) is negotiating with Bombardier to buy the CRJ program.
BBC has got comments from both companies confirming the discussions, with cautions nothing is settled and it can still result in a no deal. Should it happen it would make a lot of sense for both parties.
UPDATE: Bombardier has issued a statement confirming the discussions, see below.
June 3, 2019, © Leeham News: Airbus and Embraer are 50 years old this year.
Airbus broke out the party hats last Wednesday. It arranged a formation flying of all its in-production aircraft, including the Beluga XL. It launched a website microsite with its history. A new book, Airbus, The First 50 Years, has been issued. A celebration is planned for the Paris Air Show.
Embraer’s anniversary is Aug. 19, so at this point, its party plans haven’t been solidified, but there will likely be something at the Paris Air Show. Embraer plans to have its new specially painted E195-E2 at the air show.
Updated, 3pm Brazil time, with Bombardier statement and additional response from Embraer.
May 29, 2019, © Leeham News, Sao Jose dos Campos, Brazil: Mitsubishi is changing the name of its MRJ jet, revamping the smallest version and considering a US production line, the Japanese news agency Nikkei Asia Review reported May 29 (Japan time).
The report comes on the final day of the Embraer Paris Air Show Media Days and just before the annual meeting of the International Air Transport Assn., which opens June 1 in Seoul.
It’s unknown if the timing of the leak is deliberate or coincidental.
Mitsubishi Aircraft Corp (MITAC) hinted at changes to the airplane at a press briefing in April at its new Renton (WA) US headquarters.
Timing and events appear to be converging to boost the new MITAC jet.
May 29, 2019, © Leeham News: Embraer, in what will be its last 20-year market forecast as an independent company, sees a demand for 10,550 jet and turboprop aircraft from 50 to 150 seats through 2038.
The company, founded 50 years ago, growing to become the world’s third largest supplier of airliners, sees its Commercial Aviation unit disappear by the end of this year, barring a hiccup of some kind.
That’s when The Boeing Co. and Embraer expect approval of a joint venture that will be called Boeing Brasil-Commercial (BB-C). Boeing will own 80% of the JV and control governance. Embraer will own 20%. The CEO of the Commercial Aviation unit, John Slattery, will be president of the joint venture, but Boeing will be in charge.
Until then, Embraer is trying to carry on business as usual. And this means it issued its 20-year forecast Monday during its pre-Paris Air Show international media briefing at its headquarters in Sao Jose dos Campos, Brazil.
May 28, 2019 © Leeham News: Embraer’s KC-390 multi-role tanker transport is nearing delivery of the first aircraft to the launch customer, the Brazilian Air Force.
In a briefing in advance of the Paris Air Show at Embraer’s Unidade Gavião Peixoto Airport 225 miles from its Sao Jose dos Campos headquarters, program VP Walter Pinto said that most of the required testing is complete.
May 28, 2019, © Leeham News: The first E175-E2 prototype is now in production at the Embraer plant here at Sao Jose dos Campos, Brazil, despite having no firm orders and only a single conditional order for 100 aircraft from a US airline that so far can’t use the airplane.
Embraer designed the airplane with the hope the so-called Scope Clause would be relaxed in contract negotiations this year and next by pilots for American, Delta, United and Alaska airlines. It’s become clear that relief is unlikely.
May 27, 2019, © Leeham News: Embraer is not going to launch a new 70-90 seat turboprop now or at the Paris Air Show next month, the CEO of its Commercial Aviation unit said today at the company’s pre-air show briefings in Brazil.
Speculation has been rising since word leaked last year that Embraer began showing a conceptual turboprop airliner to potential customers. But John Slattery, CEO of Embraer Commercial Aviation, said the business case has yet to be closed, information still needs to be gathered and analyzed, and studies of the engine technology—including hybrid electric—still must be done.
ATR and Bombardier are the leading global manufacturers of turboprop airliners today. ATR has an overwhelming majority of the backlog, between 80%-85%. Bombardier neglected sales of the Q400 during the development of the C Series. The company last year agreed to sell the program to Canada’s Viking Air. The transaction is expected to close this summer.