Embraer (EMBR3.SA) expressed “full support” for Pratt & Whitney as it confronts durability issues on its latest jet engines but said a separate business dispute with engine makers had prompted it to delay plans for a new turboprop plane.
CEO Francisco Gomes Neto told reporters that Raytheon Technologies (RTX.N) unit Pratt & Whitney was working hard to fix premature wear issues that grounded certain jets.
“I am personally involved; we recently visited them…” Gomes Neto told a Portuguese media briefing that Embraer jets were less affected than others.
Pratt Whitney, Geared Turbofan engines power the third-largest planemaker’s E2 planes.
Pratt and India’s GoFirst are disputing the airline’s insolvency over the Airbus A320neo’s similar engines.
Gomes Neto said Embraer was involved in current campaigns to sell more than 200 commercial jets, which would support a target of returning annual aircraft deliveries to 100 within 3-4 years.
At an annual media event, he acknowledged that the company’s plans for a new turboprop aircraft were “on hold” due to engine manufacturers’ unattractive commercial offers.
“We have not yet found the right engine solution,” he stated. As a result, for regional turboprops, Pratt & Whitney Canada is the only engine supplier.
Pratt & Whitney Canada or Rolls-Royce (RR.L) remain after General Electric (GE.N) pulled out.
Chief Financial Officer Antonio Carlos Garcia said Embraer could have produced a new turboprop alone, but it would not have been different enough from existing models. Instead, he stated that Embraer needed a partner for a game-changing concept.
Airbus and Leonardo (LDOF.MI)-owned ATR dominates the 50-70-seat turboprop market.
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