Brazil's Economy
Embraer: Brazil's Aircraft Maker
How Brazil built Embraer from a state company into the world's third-largest commercial aircraft maker, and what it shows about industrial policy.
Embraer is one of Brazil’s great industrial successes.
Origins
- Founded in 1969 as a state-owned company, linked to Brazil’s air force research institute.
- The ITA engineering institute trained skilled engineers.
Privatisation
Embraer was privatised in 1994, after struggling financially.
Success
- Focused on the regional jet niche: planes with around 70 to 130 seats.
- Became the world’s third-largest commercial aircraft maker after Airbus and Boeing.
- Also makes business jets and military aircraft.
Boeing deal
Boeing planned to buy Embraer’s commercial division, but cancelled the deal in 2020.
India link
Embraer jets are used by Indian airlines like Star Air, and Embraer has explored partnerships in India, including military transport aircraft.
Lessons
- Long-term investment in education and research.
- Niche focus avoided head-on competition with giants.
- Privatisation brought market discipline.
A regional airline chooses Embraer jets for short routes between smaller cities, where big Airbus or Boeing planes would fly half empty.
Brazil's Embraer is the third-largest commercial aircraft maker.
- Embraer was founded as a state firm in 1969.
- It was privatised in 1994.
- It focused on regional jets and became third-largest.
- Education and niche focus drove success.
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