12 February 2014

Asian Investment Yielding Handsome Returns for Embraer

For Brazil’s Embraer, a lot has changed in the 13 years since it first laid brick and mortar in Asia. The world’s major airframe makers now consider the Asia Pacific region the biggest market for airliners in the world, and Embraer’s establishment first of an office in Beijing and later a joint-venture to build ERJ 145 regional jets in Harbin has proved prescient.


Also operating an office in Singapore, Embraer (Stand CD51) has spread its influence throughout the Pacific Rim in relatively short order, nimbly adapting its modus operandi to the needs of its customers and commercial partners in the region. In China, for example, the Harbin factory now builds Legacy business jets for a domestic market that has quickly developed into one of the world’s most promising.

Speaking with AIN last month, Embraer CEO Frederico Curado stressed the importance of the company’s decision to invest so thoroughly in the region, and yet do so in a deliberate, thoughtful way. Dividing its marketing efforts in the region between China and the rest of Asia, from India eastward, for example, has proved vital to Embraer’s ability to exploit what in some ways amounts to two distinct markets. “I think it was the right call to separate our focus,” said Curado. “China is a very specific market and demands a specific focus…I think the decision was key to our success in China.”