DefenseEmbraer is continuing its strategic plan to strengthen ties with countries with great potential to close significant contracts for its aircraft and services.
In this sense, the Brazilian company announced on May 30 that it will open a subsidiary in New Delhi, India. The unit’s headquarters will be in AeroCity, an aerospace hub in the country’s capital.
According to Embraer, the subsidiary “intends to strengthen its operations in defense, commercial and executive aviation, services & support, and in the growing urban air mobility sector.”
The plan is quite clear: to seek local partners to meet the Indian government’s strategy of developing the high-tech industrial park.
In addition, it will position itself in a better position to compete for orders from companies and also public contracts. To this end, establishing a supply and service chain will be essential.
“India is a key market for Embraer, and this expansion demonstrates our unwavering commitment to the country,” said Francisco Gomes Neto, President and CEO of Embraer.
At the top of the manufacturer’s priorities is the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) competition, which aims to select a tactical transport aircraft.
The KC-390 is competing for an order of 40 to 80 aircraft with the C-1390J from Lockheed Martin and the A400M from Airbus.
Whoever wins, production of part of the order on Indian soil is a fundamental condition. In the case of Embraer, its partner Mahindra is expected to be entrusted with the task.
Commercial aircraft fleet still small
In the civil segment, Embraer is struggling to find customers for the E2 family. The country’s major airlines have ignored the company’s efforts and concentrated orders on aircraft from Boeing and Airbus.
However, the good performance of regional carrier Star Air could help turn this scenario around. The small Bengaluru-based carrier has been expanding its fleet of leased E175s and steadily expanding its flight network.
There are currently around 50 Embraer aircraft flying in the country, including regional jets, executive jets and the “Netra” airborne early warning aircraft in service with the IAF.
