company_name = Empresa Brasileira de Aeronáutica
company_type = Public (
NYSE: [http://www.nyse.com/about/listed/lcddata.html?ticker=ERJ ERJ] ) ( Bovespa: [http://www.bovespa.com.br/Cotacoes2000/CotacaoRapidaHome.Asp?PaginaReferente=PosicaoGeralPregao.Asp&txtCodigo=EMBR3 EMBR3] )
135 company_slogan = N/A
foundation = 1969
location = flagicon|Brazil
São José dos Campos, São Paulo, Brazil
Frederico Fleury Curado, President& CEO
num_employees = 23,855 (7-2008) [http://www.embraer.com/english/content/imprensa/embraer_numeros.asp Embraer in Numbers (Statistics)] ]
Aircraft, aircraft components, mission systems for air and ground operation
revenue = $6.054 billion USD (2007)
cite web |url=http://zenobank.com/index.php?symbol=ERJ&page=quotesearch |title=Company Profile for Embraer Emp. Brasileira de Aeronautica (ERJ) |accessdate=2008-10-03]
homepage = [http://www.embraer.com/ www.embraer.com] |
Embraer -- ] --, the Empresa Brasileira de Aeronáutica S.A., is a
Brazilian aerospaceconglomerate. The company produces commercial, military, and corporate aircraft, as well as providing related aerospace services. From 1999 to 2001 it was Brazil's largest exporter and is one of the three main exporters in Brazil. Among all aircraft manufacturers, it currently has the third [ [http://www.thestar.com/Business/article/308345 Business demand lifts Bombardier deliveries] ] largest yearly delivery of commercial aircraft (behind Boeing, Airbus) and the third largest workforce (behind Boeing and Airbus).
The company's headquarters, main production facilities, and engineering/design offices are in
São José dos Campos, São Paulo. Embraer also has a production plant and flight testing facility in Gavião Peixoto, São Paulo state. This facility includes a convert|16400|ft|m|sing=on runway, the third-longest in the world. [ [http://www.embraer.com/english/content/imprensa/press_releases_detalhe.asp?id=315 "Embraer" official web site, press release] ]
Embraer has maintenance and commercial sites in the USA and commercial offices in
France, Singaporeand China. Indústria Aeronáutica Neivais a subsidiaryof Embraerwhich produces airplanesand aircraft components. Its main product is the Embraer EMB 202 Ipanema, the most employed agricultural aircraftin Brazil and the first alcohol-powered airplane. Neiva delivered more than 3,700 aircraft until early 2006.
The creation of a Brazilian aircraft manufacturer was planned during the 1940s by the Brazilian Government as part of a technical development formed by the General Command for Aerospace Technology (CTA), the Aeronautics Technological Institute (ITA) and Embraer.
The first step to the creation of a Brazilian aircraft industry was the creation of IPD - Instituto de Pesquisas e Desenvolvimento (Research and Development Institute), current IAE - Instituto de Aeronáutica e Espaço (Aeronautics and Space Institute), which was born inside CTA, on
January 1, 1954. In the following years, the IPD developed many aircraft projects, such as the Beija-Flor helicopter. Even without commercial expression, these projects were important to the advance of Brazilian aeronautics development.
The major change occurred on
March 29, 1965, when IPD received a proposal of a turboprop transportfrom the French engineer Max Holste. A group of engineers led by Ozires Silvawould turn this proposal into a larger scale project, the IPD-6504, or Bandeirante, which flew for the first time on October 26, 1968. IPD wanted the 6504 to move into serial production, but faced a lack of interest from private companies. It was clear that the creation of a government-owned company was necessary.
July 29, 1969, Embraer was created by the Ministry of Aeronautics. By this time, the company had about 500 employees, including many former engineers from both CTA and ITA, and planned to build two Bandeirante aircraft a month. Ozires Silva became the president of the new company.
Growth and expansion
The three first series version Bandeirante were delivered in February, 1973 to the
Brazilian Air Force. In the same month, Transbrasilbought the first commercial Bandeirante, which made its debut on April 16, 1973. Exports began in 1975, and the Bandeirante proved to be a huge success in the international aviation market, upstaging other aircraft of its category in performance. About 500 Bandeirante were sold, in 36 countries.
Brazil's Ministry of Aeronautics made large efforts to contribute to the growth of Embraer. Two existing projects, the Urupema
glider, and the Ipanema agricultural aircraft, were transferred to the new manufacturer. A request for assembly in series of 112 Aermacchi MB-326trainer aircraft (to be later designated T-26 Xavante), was also made. The Ipanema is still produced today, with more than 1,000 units sold. The Xavante was produced for 11 years, with 186 units sold.
In August, 1974, Embraer established a cooperation with Piper Aircraft to assemble many
general aviationproducts by license, including the models PA-28 Cherokee, PA-34 Seneca, and PA-31 Navajo. These aircraft respectively received the designations of EMB 712 Tupi, EMB 810D Seneca and EMB 820C Navajo. All these products, plus the Ipanema, were transferred to Indústria Aeronáutica Neivasubsidiary in March, 1980.
October 22, 1975, the company's first pressurized aircraft, the Xingu, made its inaugural flight. The aircraft was smaller than the Bandeirante, thus it didn't become a successor; a few dozen Xingus were built, with most being delivered to the French Air Forcein 1981. By request of the Ministry of Aeronautics, Embraer developed its first original combat aircraft, the Tucano, which made its inaugural flight on December 16, 1980. The Tucano became the most successful turboprop military trainer ever built, with more than 650 units sold around the world and a license for Short Brothers to build it for the Royal Air Force.
The development of a
regional airlinerable to replace the Bandeirante started in the end of the 1970s. After a few stillborn attempts at updating the Bandeirante design (tentatively called EMB-120, EMB-121, EMB-123 etc.), the company decided to repeat the same basic layout but to design a new model from scratch. Eventually this project took the form of a turboprop able to carry 30-40 passengers, the Brasilia, which was certified in May, 1985. Unlike the Bandeirante, the Brasilia begun its career as an export product, entering service with the American Atlantic Southeast Airlines(ASA). This was the result of the trust that Embraer had gained in the international aviation market with the Bandeirante. The production of Brasilia officially ended on 2002, with 350 units sold; however, the aircraft may still be produced on demand.
In July, 1981, Embraer joined the AMX Program, whose purpose it was to establish a partnership to develop a subsonic light strike aircraft. Together with Aeritalia (current
Alenia Aeronautica) and Aermacchi, Embraer worked on the development of the AMX combat aircraft, which was later used to replace old military aircraft: the Aeritalia G.91 in Italy and attack-dedicated Xavantes in Brazil. The first Brazilian AMX made its inaugural flight on October 16, 1985. This project gave Embraer access to new technologies, which would be crucial in the following projects.
The next commercial project was a 19 passengers turboprop developed in partnership with FMA (current
Lockheed Martin Aircraft Argentina), the CBA 123 Vector, which made its inaugural flight on July 30, 1990. Although including some of the finest technologies available, the Vector wasn't accepted by the market because of its high price, and was cancelled without a single aircraft being sold.
By the end of the 1980s, government investments in the aerospace industry were largely reduced, due to the Constitution of 1988, which extinguished many forms of support to the industry, and due to the lack of interest in the defense area caused by the end of the
Cold War. This, combined with the failure of the Vector project, and the crisis in the aviation segment caused by the oil price increase of 1990, made Embraer slide into a deep financial crisis. Massive cuts of expenses were made until 1994, and from the 12,600 employees the company had on 1990, only 3,200 remained. With all this happening, engineers of Embraer were focusing in a new project - a Turbofan regional airlinerfor 50 passengers, the ERJ 145.
Privatization and recovery
The privatization process started within the democratically elected
Fernando Collor de Mellogovernment. The so-called "Plano Collor" was elaborated by his finance minister, Zélia Cardoso de Mello, aimed to privatize Embraer along with other state companies (such as Acesita, Vale do Rio Doceand Telebras). [ [http://www.scielo.br/scielo.php?pid=S0034-71402005000200001&script=sci_arttext "Scielo": Os efeitos da privatização sobre o desempenho econômico e financeiro das empresas privatizadas] (Portuguese)] .
December 7, 1994, Embraer was privatized, and Maurício Botelho, former executive director of Bozano Group, was named the new president. Botelho's skills as a salesman and businessman greatly contributed to the recovery of the company.Fact|date=July 2007 Partnerships with other companies such as Parker Hannifin, Allison Engine Company, and Honeywellensured enough investments for the development of the ERJ 145. The outstanding sales of the new regional jet allowed Embraer to finally recover and regain its position as one of the world's most important aircraft manufacturers. More than 1,000 ERJ 145 and aircraft based on the ERJ 145 platform (ERJ 135, ERJ 140, Legacy, 145 AEW&C, 145 RS/AGS and P-99) were delivered up to late 2007.
The next aircraft to be developed was a modern military trainer and light attack aircraft, the Super Tucano or ALX, which flew for the first time on
June 2, 1999. This aircraft was sold to the Brazilian and Colombian air forces, and is mainly employed in the Amazon region.
On July, 1999, Embraer announced the development of a new family of aircraft: the E-Jets Series, comprising the Embraer 170, 175, 190 and 195 aircraft. With this decision, Embraer advanced to the 70-110 seat market. The inaugural flight of the first model, the Embraer 170, was made on
February 19, 2002.
Today, Embraer attempts to expand its presence in the
Business jetscategory with an array of jets of varying sizes: the Lineage 1000, the Legacy 600, the Legacy 500, the Legacy 450, the Phenom 300 and the Phenom 100, which has made it the world's third-largest producer commercial aircraft. [Sirkin, Harold L.; James W. Hemerling, and Arindam K. Bhattacharya (2008-06-11). [http://www.bcg.com/globality "GLOBALITY: Competing with Everyone from Everywhere for Everything"] . New York: Business Plus, 304. ISBN 0446178292] In the Defense category, Embraer develops mission systems for air and/or ground operation; current customers are Brazil, Mexico, Greeceand India.
In April 23, 2007,
Frederico Fleury Curadosucceeded Maurício Botelho as the company's president and CEO.Mr. Curado, 45 years old, has worked for Embraer since 1984, and has been vice-president for the commercial aviation market for the past eight years.
Product line expansion: military & corporate
After the results obtained from the corporate version of their ERJ 135 aircraft, the
Embraer Legacy 600[ [http://www.thearticlewriter.com/EmbraerLegacy.htm Private Jets: Reviewing the Embraer Legacy] . The Article Writer. August 17, 2007. Retrieved on May 14, 2008.] , Embraer expanded its product line to smaller business jets as well. On May 3, 2005, the company announced two plans to introduce two new aircraft models, dubbed Phenom 100 and 300, in the "Very Light" and "Light" jet segments. Later, on May 2, 2006, Embraer announced plans to produce an executive version of its E-190 jet, called Lineage 1000, with first deliveries in mid-2008. [ [http://www.embraer.com.br/institucional/download/2_047-Prd-VAE-Lineage_1000_launch-I-06.pdf Embraer´s Official web site] ] On October 1, 2007, two other concepts for business jets were announced, the MSJ and MLJ, which would target the "Mid-size" and "Mid-light" segments, respectively. [ [http://www.aviationtoday.com/regions/usa/16165.html Embraer News Outpaces Others at NBAA] . Aviation Today. October 1, 2007. Retrieved on October 15, 2007.] On May 20, 2008, at EBACE convention in Geneva, the MLJ concept was named Embraer Legacy 450 and the MSJ concept was named Embraer Legacy 500. [ [http://www.deagel.com/news/Embraer-Mid-Jets-Renamed-Legacy-500-and-Legacy-450_n000004241.aspx] ]
April 19, 2007, Embraer announced it was considering the production of twin-engine, jet-powered military transport, the Embraer C-390. Using many of the technologies developed for the Embraer 190, it would carry up to 19 tons (41,888 pounds) of cargo and is aimed at replacing older, Cold War-era cargo aircraft. By comparison, the Lockheed C-130 Herculescarries between 19.7 tons (43,550 pounds) and 21.2 tons (46,812 pounds). [ [http://www.embraer.com.br/institucional/download/2_025-Com-VPD-_C-390-I-07.pdf EMBRAER HAS MILITARY TRANSPORT AIRCRAFT UNDER STUDY] ] The project is still under consideration, and is dependent on customer interest. The Brazilian postal service, the Correios, has demonstrated interest in buying at least 5 and eventually 20 to 25 of the aircraft, in lieu of using commercial freight service for mail transport. [ [http://www.monitormercantil.com.br/imprimir_noticia.asp?id2=44595 Costa confirma projeto dos Correios com cargueiro C-390] . Monitor Mercantil. August 28, 2007. Retrieved on October 15, 2007.] [ [http://www.flightglobal.com/articles/2007/09/04/216557/brazilian-postal-service-may-order-embraer-c-390-freighters.html Brazilian postal service may order Embraer C-390 freighters] . Flightglobal.com. September 4, 2007. Retrieved on October 15, 2007.]
Originally Embraer was 51% controlled by the Brazilian government, the remainder held by private investors. With the privatization in 1994, control has passed to three Brazilian investment groups (
Previand Sistelpension funds and Bozano Group), with each holding 20% of the voting capital. Another 20% was acquired in 1999 as part of a strategic partnership to develop advanced military aircraft by a European consortium( EADS, Dassault Aviationand Thales Grouphold 5.67% each, and SNECMAholds 2.99%). The remainder was publicly traded.
The Brazilian government remained involved through the possession of a
golden share(1 share) in the company, which allows it to veto certain deals regarding military aircraft sales and technology transfer to foreign countries.
March 31, 2006, a capital restructuring proposal was approved, consisting of a simplified capital structure composed of one type of shares (common shares). Current capital distribution is as follows: Bozano Group 11.10%, Previ 16.40%, Sistel 7.40%, BNDES6.30%, Brazilian Government 0.30%, Others Bovespa19.20%, Others NYSE39.30%. [ [http://www.embraer.com.br/ri/english/content/informacoes_corporativas/estrutura_capital.asp Informações corporativas] (Portuguese)]
Government subsidy controversy
Both Embraer and its main competitor,
Bombardier, were engaged in a subsidy dispute in the late 90s and early 2000s. It was found by the World Trade Organization(WTO), in a 2000 ruling, that Embraer has received illegal subsidies from the Government of Brazil. In its ruling, the WTO ordered Brazil to eliminate its Proex export subsidies program, which was found to aid Embraer. [ [http://www.businessweek.com/archives/2001/b3715141.arc.htm Embraer: The Sky's the Limit] ] In October 19, 2001, the WTO ruled against Canada, just as it had ruled against Embraer, over low interest loans from the Canadian government designed to aid Bombardier in gaining market share. [ [http://www.cbc.ca/money/story/2001/10/19/wto_011019.html WTO rules against Canada over low-interest loans for Bombardier deal] ]
* Embraer São José dos Campos (
São José dos Campos, Brazil)
* Embraer Eugênio de Melo (
São José dos Campos, Brazil)
* Embraer Gavião Peixoto (
Gavião Peixoto, Brazil)
* Embraer Portugal (
Évora, Portugal) - Will start its production in 2009.
Regional sales and product support offices
* Embraer North America (
Fort Lauderdale, USA, Nashville, USA, and expected to be completed in 2008, Hartford, USA)
* Embraer Europe (Villepinte, France)
* Embraer China (
* Embraer Singapore (
Indústria Aeronáutica Neiva( Botucatu, Brazil) - manufactures the Embraer EMB 202 Ipanema, light aircraft, and various components.
* EAMS - Embraer Aircraft Maintenance Services Inc. (
Nashville, USA) - maintenance services site.
OGMA- Indústria Aeronáutica de Portugal ( Alverca do Ribatejo, Portugal) - aircraft component maintenance, repair and manufacturing, plus aircraft maintenance services.
* ELEB - Embraer
LiebherrEquipamentos do Brasil ( São José dos Campos, Brazil) - manufactures landing gearand hydraulicsystems.
* Harbin Embraer (
Harbin, China) - manufactures aircraft from the ERJ family for the Chinese market.
Embraer EMB 110 Bandeirante
Embraer EMB 120 Brasilia
Embraer EMB 121 Xingu
Embraer/FMA CBA 123 Vector
Embraer ERJ 145 family, composed of:
** Embraer ERJ 135
** Embraer ERJ 140
** Embraer ERJ 145
Embraer E-Jets, composed of:
** Embraer 170
** Embraer 175
** Embraer 190
** Embraer 195
Embraer EMB 312 Tucano
Embraer EMB 314 Super Tucano
AMX International AMX
* Embraer ERJ 145 military variants, composed of:
** Embraer 145 AEW&C
** Embraer 145 RS/AGS
** Embraer P-99
Embraer Phenom 100
Embraer Phenom 300
* Embraer Legacy 450
* Embraer Legacy 500
Embraer Legacy 600
Embraer Lineage 1000
Embraer EMB 202 Ipanema
Embraer EMB 326GB Xavante
Commercial aircraft deliveries
The numbers include military versions of commercial aircraft.
Total delivered-backlog-options as of June 30, 2007: 862-53-131 145 Family, 256-399-719 170/190 Family
* [http://www.embraer.com/english/content/empresa/history.asp Embraer History]
* [http://www.jetsite.com.br/2006/mostra_fabricantes.asp?codi=31 Embraer History on Jetsite.com.br (in portuguese)]
* [http://www.iae.cta.br/historico_aer.htm History of Brazil Aeronautics Industry (in portuguese)]
* [http://www.embraer.com Embraer]
* [http://www.airplanes.se/gallery.php?list=familj&marke=Embraer Pictures of the Embraer fleet (in English)]
* [http://www.ogma.pt OGMA]
* [http://www.cta.br CTA - General Command for Aerospace Technology (in Portuguese)]
* [http://www.ita.br ITA - Aeronautics Technological Institute (in Portuguese)]
* [http://www.iae.cta.br IAE - Aeronautics and Space Institute (in Portuguese)]
* [http://www.aeroneiva.com.br Indústria Aeronáutica Neiva (in Portuguese)]
* [http://www.abcdlist.nl/mainrj.html Production Lists]
* [http://www.avbuyer.com/Articles/Article.asp?Id=770 Embraer Profile by World Aircraft Sales]
* [http://video.images-de-prestige.com/aircrafts.php?com=Embraer Aircraft videos]
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