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EMBRAER of Brazil has been slowly expanding its market for 60 years but they've been reluctant to move into the A320/737 category. I don't understand why - the
by dingaling 1y ago
EMBRAER of Brazil has been slowly expanding its market for 60 years but they've been reluctant to move into the A320/737 category. I don't understand why - there are over 12,000 orders backlogged with Airbus and Boeing, surely that's the strongest possible indicator of potential demand.
An airline placing an order for an A320 or 737 now will have a decade to wait for delivery.
Instead EMBRAER keep themselves locked in the regional jet market and are lucky to get 80 orders a year.
- trhway 1y agoIt is a very complicated product. Whole countries like Russia and China are trying to build even somewhat smaller modern jets and basically haven't been able so far. And for "national jet" the task is easy as you can allow some inefficiencies. For a pure commercial jet product like EMBRAER would supposedly build, it must be a topline on all KPIs otherwise some ROI numbers over 10-20 years would project it to be several percent worse than Boeing/Airbus, and the airlines wouldn't buy it.
- tpm 1y agoLook what happened when Bombardier tried to do something similar. Brazilian market is too small to accomodate that and other markets will try to protected their own aircraft industry, if they have one. https://en.wikipedia.org/wiki/Airbus_A220#Boeing_dumping_petition https://en.wikipedia.org/wiki/Airbus_A220#Boeing_dumping_pet...