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Embraer SA: Battle in the regional jet market

Published: February 2013 · Publisher: MarketLine
Embraer S.A (Empresa Brasileira de Aeronáutica), which was a public owned company for more than 24 years, had accumulated a debit worth $1bn at the beginning of the 1990s.
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages19
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-2816
Price € 369,00
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Introduction

Embraer S.A (Empresa Brasileira de Aeronáutica), which was a public owned company for more than 24 years, had accumulated a debit worth $1bn at the beginning of the 1990s. The company was privatized in 1994 to become a market leader in the production of regional jets.

Features and benefits

* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

Embraer S.A (Empresa Brasileira de Aeronáutica) is the sole aircraft maker from a developing country. It started its operations in 1969 as a public company. As in most of the developed countries, the nascent aerospace sector was heavily protected by tariffs, tax reduction and funding.
The production of Embraer Regional Jet-145 (ERJ-145) launched the company into the lucrative regional jets market in 1996. Prior to 1996, Bombardier was the sole aircraft manufacturer in this market segment selling the Canadair Regional Jet (CRJ) 500.
Demand for regional aircraft is estimated to increase considerably over the next 10 years. However, Embraer faces no shortage of challenges. Given the high profitability of this market over more than 20 years, the company is facing competition from new entrants.

Your key questions answered

* Which are the main aircraft manufacturers of Regional Jets worldwide ?
* How many new entrants are there in the Regional jets market ?
* How many competitors are currently operating in this market ?
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OVERVIEW
Catalyst
Summary
EMRAER HAD A DIFFICULT JOURNEY TO MARKET DOMINANCE
It was state-owned in its early years
Embraer for sale: private investors rescue the company
Embraer regional jets were key to profitability
The regional jet market is growing rapidly
IPO provides capital to support R&D
STRATEGY IN THE REGIONAL JETS MARKETS
Aircraft size fit for the market
Market share pulverization in the regional jet market.
CONCLUSIONS
Embraer faces no shortage of challenges today
APPENDIX
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Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.