Embraer Blames Failed Boeing Deal for Delivery Downturn

Brazilian aircraft manufacturer, Embraer delivered five commercial aircraft in the first quarter of this year, a drop of more than half compared to the same period in 2019. The firm said its figures were “negatively impacted” following preparations for a collapsed joint-venture deal with Boeing.

Embraer handed over a total of 14 jets in the first three months of this year, only five of which were commercial aircraft. Of these, the airframer delivered three E175s and only one E190-E2 and E195-E2 aircraft.

Historically, the firm sees fewer deliveries in the first quarter of each year, but in 2020 it says its commercial aircraft deliveries “were also negatively impacted by the conclusion of the separation of Embraer's Commercial Aviation unit in January.”

In the first quarter of this year, Embraer delivered a single E195-E2. Embraer

The company had pinned its hopes on Boeing’s planned takeover of its commercial aircraft division, which would have brought the American manufacturer’s marketing power to its E2 jets. The deal, which was due to be concluded last month, was broken off by the Chicago-based company after unsuccessful negotiations about contract conditions. Embraer disputed this and accused Boeing of making “false claims” to justify terminating the $4bn deal.

In its quarterly results filing, the company revealed a firm order backlog totalling 318 aircraft. The list comprises 163 E175s, four E190s, 15 E190-E2s and 136 E195-E2s, equating $15.9bn.

The São Paulo-based firm did not mention the COVID-19 pandemic as a reason for its weak delivery numbers.