Embraer to have key 3Q for deliveries
Embraer, the leader in the regional jet market, is on course to fulfill its forecast of aircraft deliveries for 2022, despite persistent challenges in the global supply chain. But the current quarter will determine whether, in fact, it will be possible to achieve these goals, according to the company’s CEO, Francisco Gomes Neto."The scenario is still challenging. The third quarter will be key for us to have a final vision," he told Valor. The shortage of electronic components, manufactured mainly in Asia, and the lack of skilled labor in the United States, which compromises the production programs in one of the most important suppliers of parts for the aircraft industry, are the main obstacles on the way to deliveries of 60 to 70 commercial airplanes and 100 to 110 executive jets this year. These estimates include growth compared to 2021.To circumvent the challenges in the supply chain, Embraer has placed more than 20 of its professionals inside plants of suppliers and sub-suppliers to assist them in the production programs. So far, the measure has ensured the arrival of the necessary components, although with delays. But it has not been able to prevent delays in aircraft deliveries.At the same time, with the resumption of demand in commercial aviation and the various campaigns underway, the company is expected to have good news in sales ahead, confirming the new business expansion cycle. The Farnborough Airshow, which takes place next week in England, is the main event in the world’s civil aviation calendar, and the traditional stage for announcing new orders. Embraer will be at the show."We will take the message that we are ready to grow," said Mr. Gomes Neto. For some time now, the executive has been indicating that, after putting its house in order, Embraer will experience a period of growth between 2023 and 2026. For 2022, the expectation is a return to net profit, after four years of consecutive losses.The dramatic drop in the production of commercial jets, due to the Covid-19 pandemic, and the end of the agreement that would result in the sale of commercial aviation to Boeing led the company to promote important structural adjustments. Now, the time is to gain muscle, with more efficiency.Among other initiatives, Embraer recently signed an agreement with Toyota to apply the concepts of the Toyota Production System in the industrial operation, in search of greater operational efficiency. By the end of 2023, the goal is to reduce the...
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