Embraer CEO Francisco Gomes Neto speaks during Embraer Media Day 2022 at the aircraft factory in Sao Jose dos Campos, Brazil, on May 30.
Carla Carniel | Reuters
Brazilian aircraft manufacturer Embraer is studying the market and new technologies that could justify building an entirely new jet, CEO Francisco Gomes Neto told CNBC.
A new aircraft could help the plane maker compete with much larger rivals Airbus and Airbus Boeingwhich delivers hundreds of jets per year, compared to Embraer's dozens of aircraft.
However, Gomes Neto noted that no decisions have been made yet.
“At this point we have no concrete plans for a tall, narrow body,” he said, adding that studies “need to be prepared” for new engine technologies, avionics and potential demand.
In the meantime, Gomes Neto said Embraer is focused on improving results and selling its regional aircraft, which received orders earlier this year American Airlinesmanufacturing its E2 jet and “delivering what we promise our customers.”
Embraer said Friday that it delivered 16 commercial aircraft in the third quarter, up more than 5% from a year earlier. Including its defense and business aircraft, the company delivered 57 jets in the period, a third more than the previous year.
An Embraer E195E2 aircraft
Frederic Stevens | Getty Images
The Federal Aviation Administration approved a freighter version of its passenger-to-freighter conversion E190 jet earlier this month, paving the way for commercial introduction.
“That’s perhaps the advantage we have: We have a great product.” [that’s] available,” said Gomes Neto.
Both Airbus and Boeing are having difficulty ramping up production and delivering aircraft on time in the wake of the pandemic. Boeing faces the additional challenges of a safety crisis and a machinists' strike.
Boeing once had plans to take control of Embraer's commercial aircraft business, but ended those talks in early 2020. Last month, Embraer said Boeing would pay $150 million for the failed plan.
Like its competitors, Embraer is facing supply chain strains due to the pandemic, and the company is taking a closer look at delivery capabilities.
Engines, hydraulic valves, cabin interiors and components for them are some of the areas where it is difficult to increase production from suppliers, said Gomes Neto. He added that he expects supply chain issues to likely ease in 2026.
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