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Sun, Aug 20, 2023

Embraer Brass Says it's Sitting Pretty with Bizjet Demand

Expects 27.5% Sales Increase from 2022

Embraer sales head Gustavo Teixeira offered an interview ahead of the Latin American Business Aviation Conference and Exhibition, noting the firm's strong standing in a market where competitors might just be a little winded.

Teixeira noted a book to bill ratio of more than 2.5, adding that a number of their orders come from first-time light jet buyers. The boon in smaller, more affordable aircraft has been great for business, it seems, continuing the wave of post-pandemic private travel. Embraer's position as the poster boy of small jets has given it pole position in selling a range of entry level to "super mid-size" jets all around the world. They've ramped up production, of course, like so many competitors looking to capitalize on eager customers and long lines.

He added that 30% of Embraer's clientele are first-timers, explaining that they have moved on from headache-ridden commercial air travel, then charter, and now in-house flight operations. "They used to fly commercial, then executive by charter and now are going for their first plane," he said. These customers will remain private plane owners and upgrade to more expensive jets from here," said Teixeira.

Embraer is sitting pretty for now, but across the pond Dassault, another jet manufacturer, sang a different tune in its recent 2023 report. The French jet manufacturer said it was seeing a slowdown in sales since the end of 2022, with only 12 orders seen through the first half of this year compared to 41 in 2022. They noted a different business climate surrounding their industry, as business aviation increasingly comes under fire from environmental legislators and lobbyists.

Embraer remains undaunted, though. "Demand has been keeping momentum. There was that very strong expansion cycle in 2021 and 2022, and now we see that it is holding on to that level," ended Teixeira.

FMI: www.embraer.com

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