Embraer Enters The Chat: Looks At Filling Void Left By Boeing As World Clamors For Jets

Boeing’s reputation is in tatters, and their manufacturing capacity has been throttled by the government and a need to revamp quality control processes. Airbus can’t keep up with demand, and has its own delivery delay issues. Both are booked up with sales for the next several years, regardless.

The Commercial Aircraft Corporation of China (COMAC) has introduced the C919 and has about 1,100 orders within China, but no regulator outside of China has certified it. About 40% of the plane’s components are internationally-sourced, so they may face the same supply chain constraints as other manufacturers. And it seems that orders from one government pocket to another don’t lead to much confidence that the plane will be a success outside the country’s borders.

The world may desperately need another mainline jet manufacturer and Embraer is looking at filling that void. Readers know them best for their ERJ-145 small regional jets (usually one-cabin, 50 seats) and their larger E-175s which are frequently outfitted with first class and now often with high-speed internet as well.

Embraer, the Brazilian aerospace and defence group, is studying options for a new passenger aircraft that could put it in direct competition with the industry’s heavyweights, Airbus and Boeing. 

The project, which is in its early stages, could either become plans for a narrow-body aircraft or a long-range business jet, people familiar with the situation confirmed. 

The planemaker’s current E195-E2 is a small narrowbody competitor. A fresh aircraft would cost ten billion dollars or more to develop. Canadian manufacturer Bombardier almost went bankrupt developing what’s now the Airbus A220.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. By the time it’s developed and verified, this will be irrelevant. And China will do what it needs to do to get planes flying, especially in second and third world countries.

  2. I just flew the Porter airlines e195-e2. It’s a nice little aircraft. It can fly yyz-sfo. It seats 132 and is a good 319/320 competitor. And no middle seats.

  3. Embraer has the same benefit of a defense business to help provide revenues.
    The Ejets market is essentially no growth so Embraer has to be thinking about another plan for commercial jets or face extinction.
    Like Bombardier which developed the C Series, Embraer has a good reputation in aerospace but has a lower cost workforce like the Chinese and Russians but is a “friendly” county to the west unlike the Chinese and Russians.
    Embraer won’t spend the money to develop earth-shattering new technology. Airbus and the Japanese might do that. Embraer can build a solid existing technology aircraft that is marginally more efficient and can replace thousands of A320 and B737 family aircraft.

    Let’s see how this all plays out but Boeing’s bread and butter narrowbody domestic products will increasingly have more and more global competition. The degree of competition will depend on each competitor’s ability to push new technology and better fuel efficiency into the product.

  4. Bombardier went almost bankrupt facing loss of sales due to lawsuit from Boeing, nio tjust from developing the aircraft. The A220 as it is called now is the best narrow body in the sky

  5. If Embraer develops a 737 or A320 sized commercial jet and is successful, watch for COMAC to buy Embrarer and transfer technology and some production to the People’s Republic of China

  6. @issac — Interesting. I’ve never flownn on an e195 — there sure aren’t many around.
    https://en.wikipedia.org/wiki/List_of_Embraer_E-Jet_operators

    I can imagine the great reluctance by the major airlines to add another fleet type — especially when they all have longstanding 737 and/or A320 fleets. But Embraer has a very good reputation in the industry — especially for TIMELY delivering quality aircraft — so I could see somebody taking the plunge given the current industry supply constraints. I have flown on the e190 which I think seats about 100 and that’s a completely decent customer experience.

  7. I really hope Embraer is successful. We definitely need more competition in the commercial aircraft industry.

  8. Would be nice IF this happened, but like others have said above, it would unfortunately take a decade and cost at least $10,000,000,000. If some US/Latin American/other investors ponies up the money, and some Western Governments helped speed through efficient but safe certifications, we’re still looking at 4-6 years (and that’s at ” Operation Warp Speed” type timing). Not to mention producing them in numbers that existing/growing/new airlines need/will need.

    Boeing just needs to get it’s act together, and FAST. More Engineers and less Bean Counters.

  9. Boeing culture has shifted from engineering to lobbying and finance. How much have Boeing CEOs made in compensation when their market share has gone from essentially a monopoly to less than half? The current plan is to replace the accountant running it with another accountant whilst HQ remaining several thousand miles away from where actual work is done. Long term they will either seek a federal bailout or wind up spinning the carcass of the commercial segment and becoming what they actually are which is a lobbying company focused on defense contracts where neither cost, safety or performance is an issue.

  10. The C919 has a lot of flying to do before it will prove to be equal quality to the airplanes by Airbus, Boeing and Embraer. It could easily be better than Russian commercial passenger jets as it is. It has LEAP engines that are proven even if the ones for the C919 do not have all of the latest advancements.

  11. Surprised that nobody has mentioned that Boeing had a deal to essentially buy the civilian arm of Embraer in 2018 in what was fashioned as a “Joint-Venture” where Boeing reneged on paying the $5 Billion of compensation in the early days of Covid when the aviation market looked dead forever. Pretty shortsighted. Had the deal gone through Boeing would have a much clearer path to a clean sheet 737 replacement.

    Boeing is now being sued by Embraer for the $100 Million break-up fee that they were stiffed for.

  12. I should add that airliners being a long lived business, by squeezing R and D Boeing management can goose earnings from their stock options for a long time before discarding the aforementioned carcass to the taxpayer.

  13. Look for the former aircraft manufacturer Fokker to be part of the plan to help get Embraer to market.

  14. There is a very large building in Everett, Washington that is half empty as the big jets that were built there in the past have been discontinued.

    Perhaps Airbus could open a West Coast manufacturing plant to work down some of their backlog.

  15. In a Worst Case Scenario:
    – The government entices Lockheed-Martin or Northrop-Grumman to absorb Boeing with fat tax credits.
    – Since Boeing is a large defense contractor, the DOT insists that a merger be done in the name of National Defense.
    – Engineers are put in place to get the commercial branch back on track to satisfy the Dept of Commerce to assure continued exports and balance of payments.
    – If in doubt, the above is very similar to the model used by Airbus for all of Europe. Fragmented Euro commercial & defense aerospace contractors merged under one …and it works!!
    – Did I mention the implementation of a clawback feature in the employment contracts of all those in the Boeing C-Suite??

    Don’t laugh, the current situation at Boeing is a s**t show

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