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Embraer

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Embraer

Corporate Address
Avenida Brigadeiro Faria Lima 2170
Sao Jose Dos Campos, SP 12227-901
Brazil

Phone: 55 12 3927 4404
Fax: 55 12 3922 6000
Website
http://www.embraer.com/

Embraer - Empresa Brasileira de Aeronáutica SA - is based in São José dos Campos, Brazil, and was founded in 1969 as a government aerospace initiative and then privatised on 07-Dec-1994. On 31-Mar-2006 the majority of Embraer shareholders approved Embraer’s capital restructuring proposal, which consists of a simplified capital structure composed of one type of shares (common shares).

The Company focuses its activities on three business areas and markets:

  • Commercial Aviation;
  • Executive Aviation;
  • Defense Systems.

 

2,049 total articles

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97 total articles

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Canada’s airlines Part 1: Air Canada exudes confidence in meeting ambitious cost targets

9-Jan-2016 5:47 PM

Canada’s largest airline Air Canada continues its march to slash unit costs even as the devaluation of the CAD against the USD creates some temporary headwinds for the company. It believes that many opportunities lie ahead to further draw down its costs including a new agreement with regional partner Jazz and the introduction of the Boeing 737 Max beginning in 2017.

The company has revised its 2015 unit cost projections excluding fuel from a 1% to 2% decline year on year to a 1% decrease, driven by several factors, including currency pressure. Absent the depreciation of the CAD, Air Canada maintains its unit cost decreases would be greater year on year for 2015.

Given its complexity, Air Canada’s cost on an absolute basis will likely never equal that of its main rival WestJet; but keeping fuel and currency costs constant, the airline remains confident of lowering its unit costs by 21% between 2012 and 2018,. Air Canada's fleet strategy and the continued favourable performance of its low cost subsidiary rouge are major components of its cost cutting strategy.

Dynamics shift in the Mexico to Latin American market in 2015 with new partnerships and routes

19-Dec-2015 9:54 PM

Although Latin America has suffered from challenging economic conditions throughout 2015 that are lingering into 2016, some interesting developments have occurred between Mexico and South and Central America. Mexican airline Volaris during 2015 has branched out its international offering beyond US transborder routes to Central America, and Aeromexico and Avianca have added routes between Mexico and South America.

Copa Airlines has also added two new destinations in Mexico as it redirects capacity from battered Brazil to routes whose revenue potential is more promising. Although it is facing currency weakness similar to other Latin American economies, Mexico’s economic climate is more healthy than most countries in South America.

LATAM Airlines Group is also strengthening its ties in Mexico with a new codesharing agreement with Interjet, which has a solid domestic network. The pact shows that Latin America’s second largest aviation market, Mexico, remains one of the region’s strategic areas going forward.

Alaska Air shows the formidable power of "the Eskimo" even as its capacity outpaces the industry

13-Dec-2015 6:41 PM

Alaska Air Group plans 8% capacity growth in 2015, which is lower than the roughly 10% rise the airline will post in 2015, but higher than the industry average. Higher than average capacity growth has been the norm at Alaska Air during the last five years. The company finds itself constantly defending its expansion, pitting that growth against consistent profitability and an expansion of top line revenue.

Alaska Air believes 4% to 8% capacity growth is the ideal range for its business, and using that growth profile baseline, concludes it can generate annual increases in revenue of 3% to 8%. One new revenue stream Alaska is adopting in the short term is the creation of a premium economy product, a trend that has swept much of the US industry.

As Alaska Air looks to increase the amount of revenue generated within the aircraft cabin, revenues from the company’s partnerships have diminished. But the company has made up for the shortfall by increasing its own branded revenue, driven by Alaska’s solid network expansion during the last few years.

Cost efficiency for LATAM and Avianca takes on a higher priority as yields continue to fall

10-Dec-2015 9:12 PM

Weak economic conditions are hovering over Latin America well into 2016, forcing the region’s airlines to adjust their capacity, and expectations for a recovery in yields. Those airlines are also strengthening an already laser-sharp focus on controlling cost, which becomes even more important as revenue softness persists.

Latin America’s two consolidated airlines LATAM and Avianca Holdings have recorded favourable unit cost performances during 2015, driven in part by lower fuel expense, while yields have remained under pressure. LATAM is in the midst of an initiative to shed millions in operating costs by 2018 and fuel hedging headwinds Avianca faced in 2015 should settle down in 2016.

Maintaining a flat or decreasing cost structure takes on a different level of importance in an environment where revenues and yields continue to be squeezed. But LATAM and Avianca are working to wring out inefficiencies in their cost base, and working to scale back fleet growth in order to reduce financial commitments.

Portland International airport enjoys steady growth despite its smaller market footprint

1-Dec-2015 11:20 PM

Portland International Airport has logged solid growth during the last few years, driven in part by the hub role it plays for Alaska Air Group.

Although Portland’s market size is much smaller than US west coast hubs in Los Angeles, San Francisco and Seattle, Portland continues to slowly expand its route offerings.

The airport has also drawn interest from international airlines during the last couple of years including Condor, Icelandair and Volaris, which have all added new service to Portland. Icelandair has already committed to add an additional frequency to part of its seasonal service to Reykjavik during 2016.

Portland’s network breadth and depth will never reach the scale of the larger hubs dominated by the large global US network airlines. But its growth trends during the last few years show the airport’s position within the US domestic market remains stable.

Avianca joins airline rivals, revising margins downwards, as economic conditions worsen

3-Oct-2015 2:25 PM

Latin American airline group Avianca is attempting to mitigate tough conditions in the region, particularly a sharp devaluation of the currency in its largest market Colombia. Steps the company is taking to counteract weakness in Colombia and throughout Latin America include a domestic capacity reduction within Colombia and fleet adjustments that include both deferral of aircraft deliveries and grounding of its subfleet of Embraer 190 aircraft.

Similar to most airlines operating in Latin America, Avianca is attempting to match its supply with demand and shore up yields, even if that means sacrificing some market share, as is the case in another one of its large markets Peru.

The worsening conditions in Latin America have forced Avianca to join most of its rivals operating in the region to issue a downward revision of its EBIT margin for 2015, a discouraging sign for a company that embarked on 2015 in a seemingly better position than its rivals.

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