Insight – Embraer’s Challenges

Embraer is a plucky company that has overcome several shocks and challenges.  It looks like another is looming and this will test its management.  Embraer is facing another round of challenges.

The company has demonstrated creativity and resilience.  Its products are highly regarded and product support is as good as any OEM.  This week’s RAA convention in Washington highlighted something.  Embraer’s commercial aviation division (the largest at Embraer) is heavily dependent on the US regional airline market.  It is good news that Embraer has a monopoly on new regional jets.  It is also good that the US regional airline market is the world’s largest with ~70% market share.  Being #1 in the #1 market should be great.