Aviation Turkey:  Can we start our interview with getting an overview of 2024’s first 8 months from Embraer’s point of view? Could you provide a capsule summary of your major activities carried out during the first 8 months of 2024?

Stephan Hannemann: Embraer has been off to a very strong start into 2024 – resulting in a record order backlog sitting over $21bn right now. We’ve seen very strong business activity across all the business units of Embraer, Commercial Aviation, Defense & Security, Executive Jets and Services & Support. On the commercial aviation side, we concluded major deals this year on the E1 and E2 line, amongst this a deal for up to 133 E175 for American Airlines and deals for the E2 with Virgin Australia and Mexicana. Embraer’s defense business is also going from strength to strength - thanks to its leading performance, cost effectiveness and versatility, the C-390 Millenium has been selected by Portugal, Netherlands, Austria, Hungary, Czech Republic, South Korea, and Brazil.

Aviation Turkey: How did Embraer manage to achieve its positive results in 2023 and during first 8 months of 2024 despite the problems experienced with the PW1700G and PW1900G Geared Turbofans powering E-Jet E2 Family and the negative impacts of the Russia-Ukraine War?   

Stephan Hannemann:  Let’s be clear the GTF engine is incredibly fuel efficient and quiet. However, technical and supply difficulties have caused disruption, but the situation is improving. And while not immune, the E2 is much less affected. We are able to closely manage the supply chain to get a good understanding of the predictability of supply. This allows us and our customers to plan realistic delivery schedules that our customers can count on.

Even in this environment we have still increased production significantly every year since the lows of the pandemic.

The E2 is also less affected by technical issues on the GTF. The E2 is 10% lighter than its competition, putting much less stress on the engine, leading to more time on wing.

The Russia-Ukraine conflict did not affect the Embraer supply chain

 Aviation Turkey:  In August 2024, Embraer celebrated its 55th anniversary since establishment. What factors have contributed to Embraer’s ability to become a leading company in the aircraft market?

Stephan Hannemann:  Indeed, we are very proud of Embraer having developed into a global aerospace leader over the past 55 years. Embraer was created from an educational project, in a developing nation and has developed into the global leader we see today. Embraer is driven by visionary leadership and the passion and dedication of all our staff to be at the forefront of new technologies and innovation. As the national pride of Brazil, we are an attractive employer, able to attract the best graduates from Brazil’s top universities. 

 Aviation Turkey:  Today, the Middle East, Türkiye & Africa (META) region is one of the world’s fastest-growing commercial airplane markets. How much of Embraer’s commercial airplanes (including both single-aisle, narrow-body E-Jet E2 Family and business jets) business comes from the META region? How important is it to you globally? What potential does the META market have?

Stephan Hannemann: The META region is of high strategic importance to Embraer and has been identified as a strong growth market. The market characteristics of all three of these markets does however vary. The Turkish market for example is a very developed market already with well-established players and offers different growth potential when compared to Africa. In Türkiye the value proposition of the E2 family could be around allowing airlines to further expand their networks into smaller markets, where narrow-body aircraft would not be profitable or for building more direct connections and frequencies on the domestic market. Türkiye is a big country, with a big population and large cities outside of Istanbul which will need even better service in the future. 

Aviation Turkey: Considering the supply chain problem being experienced in the global aerospace industry nowadays how long does it take around to get brand new E-Jet E2 airliners from order placement to delivery? 

Stephan Hannemann:  This depends on many factors and can be very dynamic. The lead-time is ultimately driven by the desired aircraft configuration, production slots and many other variables... But it is fair to say that currently could be done within 24 months. Compared to other OEM solutions we can therefore offer very attractive slots and lead-times to power airline growth. 

Aviation Turkey: Do you expect the current supply chain problems, that mainly stem from labor shortages at medium and small suppliers, will continue also in 2025?

Stephan Hannemann: Though it will be less intense, we still expect supply chain limitations in 2025. The full supply chain capability in our industry might only be reached in 2026. 

Aviation Turkey: Can you elaborate on Embraer’s ‘Production Leveling’ plan, which is referred by you as an “another important initiative that will take the operational and financial performance of Embraer to a next level”?

Stephan Hannemann: Embraer’s commercial deliveries have always skewed heavily towards the end of the year. With upwards of 60% of deliveries often happening in the last quarter. Embraer is working hard to equalise production better across the whole year. We have succeeded in flattening the curve considerably. 

25 jets delivered 1Q24, 67% higher quarter on quarter

19 jets delivered 2Q24 C.170% higher QoQ

 Aviation Turkey: Developing game-changing commercial aircraft requires game-changing technical capabilities. How much time, effort and money does Embraer set aside on R&D annually to develop next-generation aerospace technologies, materials, and manufacturing processes?  What innovative technology areas will Embraer focus on in the near term? 

Stephan Hannemann:  One of the main areas of technology development that Embraer is currently focusing is zero-emission solutions. For more than two decades Embraer has been studying and developing solutions that support the reduction of emissions in our industry, one example is the E2 family, the most fuel-efficient single-aisle jet in the market today. Now, to further develop technologies to enable a zero-emission flight, Embraer is assessing new technologies like hydrogen and electric power. We are doing this as part of a concept family of aircraft called Energia and are discussing its potential with airline executives around the world. 

Embraer also continues to invest in solutions to increase the efficiency of its current products, in terms of maintenance and operational cost, such as predictive maintenance and aircraft system health monitoring.  The same can be said for continually investing in the passenger experience, which is always a focus. 

 Aviation Turkey: There is a lot of talk about reducing fuel consumption and the low noise impact of commercial aircraft: How are you working to make your commercial aircraft more sustainable? What is the goal for Embraer in sustainable aviation?

Stephan Hannemann:  The E2 family is the most environmentally friendly jet on the market today. It has the lowest emission per trip and the lowest noise. During the early design phases, Embraer developed the fourth generation of its Fly-By-Wire technology to reduce structural weight and improve aerodynamic efficiency. The E2 is also the only family of commercial aircraft in which each variant has its own bespoke wing. This level of efficiency delivers 12.5% lower fuel burn than its direct competitor aircraft, and also 3EPNdB lower external noise, related to engine and aerodynamic features. 

 Aviation Turkey: How is Embraer addressing the future of commercial aviation? What kind of new products do you see a demand for in the coming years? What can the industry expect to see on the horizon as new products and services from Embraer to further strengthen its market-leading product lineup and meet the evolving needs of global customers?

Stephan Hannemann: Embraer is focused on the range of new products we now have across each of our business units – from the E2s in commercial, the E-Freighter, the C390 in defence, and the Praetors with executive jets. We do not have any concrete plans for a new aircraft in the coming years.

Aviation Turkey: The E2 is the best example of Embraer's engineering excellence and the most efficient single-aisle aircraft. As the largest aircraft in the E-Jet E2 Family, the E195-E2 has been designed to maximize returns and efficiency on high-density routes. Where do you see the strong points of E195-E2 and how does it differ from its competitors?

Stephan Hannemann: The E195-E2, which we nickname ‘The Profit Hunter’ delivers impressive economics and performance to its operators. The E2 burns 25% less fuel seat compared to the previous generation and therefore offers excellent seat unit cost to airlines. The E2 is also the quietest single-aisle aircraft. At the same time we’ve increased its range, with the aircraft being able to fly up to 3000nm, equivalent to almost seven hours of flight. One of our operators, Royal Jordanian, is flying their E2s on sectors as long as Amman to Madrid, or Amman to Amsterdam. Another impressive feature is that the E195-E2 is certified and capable to operator to London City airport – a short runway airport (1500m length) in the middle of London. The E195-E2 offers unit cost similar to next-generation narrow-body aircraft, with a 20%+ lower trip cost. 

Aviation Turkey: How many orders have you secured so far for the E195-E2 commercial jet from global airline operators and how many of them have been delivered so far to end users?  

Stephan Hannemann:  303 orders of E195-E2 and 128 deliveries.

 Aviation Turkey: Can you inform us about Embraer’s current E195-E2 final assembly line in Brazil and its annual production capacity? Considering the fact that the E-Jets have established their role as the world’s third-largest force in the global airliner market do you have a plan to establish more final assembly lines in other countries?

Stephan Hannemann: Our annual delivery guidance for this year is 72 to 80 aircraft for Commercial Jets (E1 and E2). 

Today Embraer has a global presence, with facilities in different regions. We are always challenging our manufacturing processes, developing new strategies – including supply chain and final assembly lines – to better deliver value to customers while maintaining or reducing costs and minimizing supply chain disruption. 

Aviation Turkey: The Embraer E-Jet E2 Family aircraft are powered by PW1700G (E175-E2) and PW1900G (E190-E2 & E195-E2) Geared Turbofans (GTFs) of the Pratt & Whitney (P&W). However, in 2023 P&W disclosed it was recalling thousands of GTFs, saying the engines might contain components subject to early failure due to defects introduced during a manufacturing process.  How and to what extent has the GTF Engine quality issues impacted Embraer’s commercial aviation business operations, how many E-Jet E2 Family aircraft have been and will be grounded this year and into 2025 due to required engine inspections and what measures did you implement to overcome this problem?

Stephan Hannemann: Fortunately, while not immune, the impact on the E2 fleet had been less critical. By the time of the powdered metal SB release (Dec/2023), requiring an inspection of the affected parts, a large number of our fleet had already been inspected during previous shop visit opportunities, or before the delivery of the engine to our line. Since last December, no engines delivered were limited by the powdered metal (PM) issue. This meant there were no groundings directly due to PM inspections this year, and none are expected in 2025. However, the powdered metal issue did impose some constraints on a few PW suppliers, which impacted the availability of spare engines and MRO capability; and this has had an impact. 

Aviation Turkey: Focusing on Türkiye now, can you elaborate on the current status of your cooperation with both THY and other Turkish airline operators? What significance does the Turkish commercial aviation market hold for Embraer?

Stephan Hannemann: We have an excellent relationship with the airlines of Turkiye and are in regular conversations with their fleet planners and strategists around the fit of the E2 family into their future strategies. The airlines recognize the capability the E2s would bring to their businesses. The Turkish market is very important to Embraer and we look forward to strengthening discussions well into the future to build strong partnerships. 

Aviation Turkey: Could you give us an overview of programs in commercial aviation field that Embraer is interested in and to cooperate on with local industry in Turkey in the short to medium term? 

Stephan Hannemann: The aerospace industry in Türkiye has grown significantly over the past few decades, positioning the country as a major player in the global aerospace and defense sectors. Embraer believes that both countries can contribute to the growth of the aerospace industry and is always seeking opportunities to develop relevant and strategic partnerships in the field. Innovation is in Embraer's DNA and our purpose is to create solutions to help global mobility, reducing distances and bringing people together.

 Aviation Turkey:  What can you tell us about the current status of your technological and industrial cooperation with Turkish suppliers and Embraer’s supply chain here in Türkiye?  Can you elaborate on where Türkiye falls in the strategies of Embraer, in out-sourcing and building up a global supplier network and how could Türkiye contribute better to Embraer in establishing a sustainable supply chain?

Stephan Hannemann: The Turkish aerospace industry is booming, and rapidly evolving, with key players and a diverse range of technologies and capabilities. Therefore, we believe there are significant opportunities for local industry and Embraer to cooperate on supply chain integration, the development of new technologies, and on the aviation eco-system as a whole. 

Aviation Turkey: How do you see Türkiye's position in your company's future business projection?

Stephan Hannemann: Türkiye has built itself into a globally leading aviation hub, regardless if for it’s airlines or it’s aviation companies like TUSAŞ or TCI. Therefore, we at Embraer consider future partnerships with Türkiye to be of great importance. 

 Aviation Turkey: Would you like to add anything by way of a message our readers?

Stephan Hannemann: We thank the Turkish aviation community for their great interest and support into our products and look forward to building further the strong relationships we’ve grown through the past years