financetom
Business
financetom
/
Business
/
Embraer's aircraft delivery delay seen 1 to 2 months, shorter than peers' times, CFO says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Embraer's aircraft delivery delay seen 1 to 2 months, shorter than peers' times, CFO says
Sep 1, 2024 9:30 AM

SAO PAULO, Aug 29 (Reuters) - Brazilian planemaker

Embraer's ( ERJ ) average delay to deliver aircraft is around

one to two months, the firm's chief financial officer said on

Thursday, highlighting it as shorter than the delays larger

peers face.

The aviation industry has grappled with supply issues since

the pandemic, forcing plane manufacturers to delay deliveries

and constraining a capacity increase that would help airlines

meet higher travel demand.

Engines continue to be Embraer's ( ERJ ) biggest supply-constraint

problem, CFO Antonio Carlos Garcia told reporters, but the

company has avoided excessive extensions to delivery deadlines.

"We only commit to our clients when we can deliver. So there

can be a delay, but one to two months maximum this year," Garcia

said. "While for Boeing ( BA ) and Airbus it may top a year, depending

on the client."

The two rival manufacturers did not immediately respond to

requests for comment.

The Brazilian firm's niche is the regional market for planes

smaller than Boeing's ( BA ) and Airbus' best-selling

150-seat-plus market. Embraer's ( ERJ ) E2 jets, however, directly

compete with Airbus' A220.

Embraer ( ERJ ) has experienced strong demand for its small

narrowbody aircraft, such as the next-generation E2, as carriers

face a shortage of larger single-aisle planes due to Boeing's ( BA )

and Airbus' extended delivery timelines.

The backlog of Embraer's ( ERJ ) commercial-aviation unit ended the

second quarter at $11.3 billion worth of firm orders, up 40%

year-on-year, while the overall backlog stood at a seven-year

high of $21.1 billion.

Garcia confirmed that Embraer ( ERJ ), which expects to deliver 72

to 80 commercial aircraft this year, still has production slots

available for 2026.

Recent sales included 20 E2 jetliners to Mexico's state-run

Mexicana de Aviacion and eight E190-E2 to Virgin Australia.

"Mexicana is a clear example," Embraer ( ERJ ) investor relations

head Guilherme Paiva said. "The problems that the industry faces

obviously have favored companies like us, which have managed to

deliver aircraft on time."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Investors sue Finland for attempt to curb power transmission prices
Investors sue Finland for attempt to curb power transmission prices
Oct 2, 2024
HELSINKI, Sept 30 (Reuters) - Investors in Finland's largest power distributor Caruna are taking the Nordic country to arbitration, the Finnish foreign ministry said, due to the Finnish Energy Authority's attempt to curb rising power transmission prices for ordinary consumers. Investors including U.S. investment firm KKR, Swedish pension fund AMF and Canadian Ontario Teachers' Pension Plan (OTTP) have filed two...
Market Chatter: Nomura Excluded From Several Japanese Yen Bond Deals Over Rule Violation
Market Chatter: Nomura Excluded From Several Japanese Yen Bond Deals Over Rule Violation
Oct 2, 2024
06:47 AM EDT, 09/30/2024 (MT Newswires) -- Nomura Holdings ( NMR ) was excluded as bond manager for multiple Japanese yen bond deals after authorities found market rule breaches, Bloomberg reported late Sunday, citing underwriter announcements. The report added that at least four Japanese companies, including Toyota Finance Corp., Sumitomo Mitsui Trust, and Okinawa Development Finance, removed Nomura as bond...
AT&T sells stake in DirecTV to TPG for $7.6 bln
AT&T sells stake in DirecTV to TPG for $7.6 bln
Oct 2, 2024
Sept 30 (Reuters) - AT&T ( T ) said on Monday it would sell its entire 70% stake in satellite TV provider DirecTV to private equity firm TPG for $7.6 billion, exiting a business marked by declining distributions for the telecom operator. AT&T ( T ), which acquired DirecTV in 2015, signed a joint-venture agreement with TPG in 2021, in...
Deals of the day-Mergers and acquisitions
Deals of the day-Mergers and acquisitions
Oct 2, 2024
Sept 30 (Reuters) - The following bids, mergers, acquisitions, and disposals were reported by 1030 GMT on Monday: ** Verizon Communications ( VZ ) is in advanced talks to sell thousands of mobile phone towers to digital infrastructure firm Vertical Bridge, Bloomberg News reported, citing people familiar with the matter. ** British real estate portal Rightmove ( RTMVF ) rejected...
Copyright 2023-2025 - www.financetom.com All Rights Reserved