Embraer’s CEO Says Supply Chain Complications Cloud 2022 Jet Delivery Goal

Bloomberg — Snarls along the aviation supply chain may make it a challenge for Embraer SA (EMBR3) to meet its year-end commercial delivery targets, the Brazilian aerospace manufacturer said Sunday.

“We are suffering with these supply chain constraints. We had a difficult first half,” Chief Executive Officer Francisco Gomes Neto said in an interview with Bloomberg ahead of the Farnborough international Airshow, which officially kicks off Monday. “We’re doing everything we can to mitigate the problems.”

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Embraer isn’t alone in experiencing difficulties getting the necessary parts to make aircraft. Airbus SE said last month that by the end of May, the company had 20 so-called gliders, or fully built aircraft without engines, that were unable to be shipped.

Best known for making smaller, regional jets that are used for shorter hops, Embraer is maintaining its guidance to deliver between 60 to 70 planes in its E-Jet family this year, better than the 50 it shipped in 2020 and 2021.

A shortage of components, along with the dearth of manpower in the US, are hurting Embraer the most currently, Neto said, noting that there are still “a lot” of deliveries to be fulfilled by the end of the year.

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The third quarter should give the planemaker a better picture of how close it can get to hitting key targets, though Neto said he was more hopeful than not of meeting previously laid out goals.

Embraer has already seconded more than 20 employees to work with suppliers and some sub-suppliers covering the most critical points of the supply chain to make sure the company gets the parts it needs, Neto said. Engines and avionics are the main pain points, he said.