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Embraer Awaits Boeing 737 Move to Decide on Future Jet Designs
By Caroline Connan and Jose Sergio Osse - Jan 31, 2011 4:29 PM ET
Embraer SA, the world’s fourth- largest planemaker, will wait to decide between building a new aircraft or re-engining its E-Jets until Boeing Co. makes that choice on its 737, Chief Executive Officer Frederico Curado said.
“We have to wait until Boeing decides,” Curado told Bloomberg News on Jan. 29 at Davos, Switzerland. “After that, the landscape will be clear.”
Airbus SAS decided December to re-engine its single-aisle A320, putting Boeing under pressure to decide what to with its 737 family. Embraer, whose jets are smaller than the Airbus and Boeing models, may enter a new market for larger and more widely used planes. Boeing will decide by midyear, Jim Albaugh, president of its commercial airplane operations, said in a Jan. 12 interview.
“If there’s an opportunity to maybe stretch our aircraft or do something a little bit bigger, we’ll of course decide and seize that opportunity,” Curado said.
Last quarter, the Sao Jose dos Campos, Brazil-based company delivered 92 aircraft, beating forecasts. It had a $15.6 billion backlog at the end of the year, according to data released Jan. 18.
Embraer is still in talks with the Chinese government and local companies it works with to find use for its plant there after it delivers the 50th and final ERJ-145 aircraft being constructed under contract, Curado said.
One option would be to open a production line for the E-190 regional jet to supply local and regional clients. “By April, we must have a decision whether to produce a larger commercial jet or something else,” Curado said.
China Plant
Embraer runs its plant in China in partnership with China Aviation Industry Corp. II, producing ERJ-145 jets. In December, then-Chief Financial Officer Luiz Carlos Aguiar said the “most likely” outcome is to shut the facility after April.
Embraer said this month it sold 10 E-190 jets for China’s CDB Leasing Co. The planes will be manufactured in Brazil.
Embraer was unchanged at 13.52 reais in Sao Paulo trading at the 3:15 p.m. New York time market close.
To contact the reporter on this story: Caroline Connan in London cconnan@bloomberg.net Jose Sergio Osse in Sao Paulo josse1@bloomberg.net
To contact the editor responsible for this story: Francisco Marcelino in Sao Paulo at mdeoliveira@bloomberg.net
By Caroline Connan and Jose Sergio Osse - Jan 31, 2011 4:29 PM ET
Embraer SA, the world’s fourth- largest planemaker, will wait to decide between building a new aircraft or re-engining its E-Jets until Boeing Co. makes that choice on its 737, Chief Executive Officer Frederico Curado said.
“We have to wait until Boeing decides,” Curado told Bloomberg News on Jan. 29 at Davos, Switzerland. “After that, the landscape will be clear.”
Airbus SAS decided December to re-engine its single-aisle A320, putting Boeing under pressure to decide what to with its 737 family. Embraer, whose jets are smaller than the Airbus and Boeing models, may enter a new market for larger and more widely used planes. Boeing will decide by midyear, Jim Albaugh, president of its commercial airplane operations, said in a Jan. 12 interview.
“If there’s an opportunity to maybe stretch our aircraft or do something a little bit bigger, we’ll of course decide and seize that opportunity,” Curado said.
Last quarter, the Sao Jose dos Campos, Brazil-based company delivered 92 aircraft, beating forecasts. It had a $15.6 billion backlog at the end of the year, according to data released Jan. 18.
Embraer is still in talks with the Chinese government and local companies it works with to find use for its plant there after it delivers the 50th and final ERJ-145 aircraft being constructed under contract, Curado said.
One option would be to open a production line for the E-190 regional jet to supply local and regional clients. “By April, we must have a decision whether to produce a larger commercial jet or something else,” Curado said.
China Plant
Embraer runs its plant in China in partnership with China Aviation Industry Corp. II, producing ERJ-145 jets. In December, then-Chief Financial Officer Luiz Carlos Aguiar said the “most likely” outcome is to shut the facility after April.
Embraer said this month it sold 10 E-190 jets for China’s CDB Leasing Co. The planes will be manufactured in Brazil.
Embraer was unchanged at 13.52 reais in Sao Paulo trading at the 3:15 p.m. New York time market close.
To contact the reporter on this story: Caroline Connan in London cconnan@bloomberg.net Jose Sergio Osse in Sao Paulo josse1@bloomberg.net
To contact the editor responsible for this story: Francisco Marcelino in Sao Paulo at mdeoliveira@bloomberg.net
