Embraer is in search of a new strategy


Sao Paulo - Embraer is seeking a strategy for the future amidst a political crisis in Brazil and a trade dispute between its key partners.

The negotiations are ongoing, and I am optimistic, but the cooperation with Boeing is not vital,
said Embraer President Paulo Cesar de Souza e Silva on the verge of the first delivery of E190-E2 jet to Norwegian regional carrier Wider√łe.
Embraer is solid; We are one of the few Brazilian companies to invest,
he added.

A barely coded message addressing the Boeing Group. Nevertheless, many in the industry see a closer integration between the two longtime partners Embraer and Boeing as a logical step after the merger of Airbus and Bombardier at the CSeries.

For Boeing, it would be the cheapest and fastest way to enter the 100 to 150-seater market and secure engineering capacity. Embraer, like Bombardier with Airbus, could rely on the financial strength and international network of the US aerospace giant.

The two companies have been cooperating since 2012 in the KC-390 program, and since 2015 also in Boeing's EcoDemonstrator program and biofuel research.

Boeing would also be the key to the US market for Embraer, where the Brazilian manufacturer is currently suffering. The largest US customer JetBlue has not decided yet whether to leave its Embraer jets in the fleet or to replace them with Airbus' A320neo.

Closer cooperation is far from being put into practice

Boeing has aggressively approached the negotiations. In a joint subsidiary, the Americans wanted to set its ownership 90% leaving the Brazilians directed extras in their national flagship company. A role that displeases the proud of the South American country.

The suppliers of Embraer are equally concerned. They have concerns about being altered by Boeing with the US competitors and already demanded to be considered in the negotiations.

On the other hand, the Brazilian manufacturer strives for neutrality in the trade dispute between the US and China.

China is a huge market for Embraer. We are not worried and have good relations with both countries, we are a global company, and we do not want to see a trade war,
Souza said.

At the moment, the trade conflict between the two powers is improving the position of the Brazilians making them even more interesting for both Americans and Chinese.

But what else does Embraer have to do in the future to strengthen its position in the international aircraft market? The manufacturer puts great hope in its new generation Embraer E2 jets to gain access to new markets.

But one thing is certain. The deal between Airbus and Bombardier will make the competition in the market for 100 to 150-seaters much tougher. Embraer must reach new markets as quickly as possible.

Brazil is in a tangible political crisis. Former President Lula da Silva has just been sentenced to 12 years in prison for corruption. The current interim president Michel Temer is also the subject of a corruption scandal. Some observers even fear of military intervention.

Embraer strives to keep the helm amidst this unstable political environment. It is not even clear at the moment which government will soon hold the company's "golden share" in its hands.