SAO PAULO, March 9 (Reuters) - Brazilian planemaker
Embraer ( EMBJ ) could roll out E175-E1 regional jets from a
potential production line in India as early as 2028, but the
plan hinges on orders for at least 200 aircraft, CEO Francisco
Gomes Neto told Reuters on Friday.
Earlier this year, Embraer ( EMBJ ) and India's Adani Group had
announced a memorandum of understanding to establish a final
assembly line for the Brazilian firm's first-generation
jetliners in India.
Such a move would mark a significant win for the Indian
government, which has urged planemakers to build jets locally,
and a geographic shift for Embraer ( EMBJ ), which currently produces
commercial jets only in Brazil.
"Of course, we will not start a significant investment
without orders. That's the first point, we need the orders. And
what we're saying is this: to set up an assembly line, we need
at least 200 aircraft to be produced there," Gomes Neto said.
If orders are secured by the end of 2026, the company would
be able to start delivering planes in 2028, he added.
"It's roughly 24 months, which we believe is enough to begin
making it happen. They know that, it's clear to us," the CEO
said.
Gomes Neto said Embraer ( EMBJ ) has identified at least 1,800 Indian
routes that could be operated by E1s - jets that seat up to 88
people and are essential to U.S. regional aviation but have
lacked demand elsewhere in recent years.
The executive noted that a plant in India would help Embraer ( EMBJ )
boost production while filling its hybrid line in Brazil with
orders for the newer E2 family, which has seen strong global
demand.
Embraer ( EMBJ ), which initially targeted reaching 100 commercial
aircraft deliveries in a single year in 2028, now sees scope to
hit the milestone in 2027, the CEO said.
SAUDI ARABIA NO LONGER A C-390 HOTSPOT
In addition to commercial aircraft, Embraer ( EMBJ ) has also
partnered in India with Mahindra on the C-390 military cargo
jet, calling the country a "strategic market" for its defense
unit.
Saudi Arabia, the European Union, and the United States also
earned that label in 2024, but Gomes Neto said prospects have
now dimmed for an order from the Middle Eastern country.
"It continues to be a business front, but it's not in the
hotspot for us right now," he said, adding that Embraer ( EMBJ ) is
instead focusing on India and the United States.
Embraer ( EMBJ ) had hoped to replace Saudi Arabia's aging fleet of
Lockheed Martin's ( LMT ) C-130. In 2023, when President Luiz Inacio
Lula da Silva visited the country, it signed a deal with SAMI,
which has the backing of Saudi public wealth fund PIF, to
explore a potential C-390 assembly line there.
"We have a good product there, but I believe they had the
vision of having a larger aircraft," Gomes Neto said. "It's
still on our radar, but no longer in the hotspot."