Embraer strengthens service businesses
Valor Econômico - 02/28/2008
Embraer will invest US$ 100 million this year to strengthen its area of aeronautical services all over the world. The budget will be used to extend the geographic reach and the number of services provided - logistics, aircraft maintenance, and training. Such a great effort is justified due to the increase of the fleet of commercial jets and the entrance of Embraer in the segment of executive aviation in the next years. To the current fleet of more than 1.3 thousand jets produced by Embraer (between commercial and Legacy executive jets) spread through 84 countries, at least another 500 aircrafts will be added until the end of 2009 (including nearly 160 jets of the Phenom line, which comes into operation this year and that has already reached more than 700 units sold). The area of aeronautical services is the most recent division of Embraer, but it already represents nearly 10% of the sales of the company, which was estimated to be US$ 5.2 billion last year. It was developed little more than one year ago, to unite the structures of aircraft maintenance, pilot and mechanic training, and distribution of spare parts. In the past, each division of the company was separately responsible for the rendering of all these services. The person who commands all these activities is the Vice-president of services Edson Mallaco, who foresees this area may reach sales of US$ 1 billion until 2012, following the sales performance of the company. Besides, it is under the responsibility of the area to produce aircraft parts and provide maintenance services for products from other manufacturers. The division is also responsible for the management of Embraer Aircraft Manteinance Services (EAMS), based on Nashville, USA - first acquisition of the company aimed at the maintenance of aircrafts -, from Portuguese Ogma, of which Embraer holds 65% of interest and the maintenance hangar in Gavião Peixoto (SP), opened in 2005. As a whole, it comprises seven units from Embraer and 38 units authorized by it.