00:00Any impact from the war?
00:01Of course. I mean, the customers are affected by the high fuel price.
00:05But if we look at the Embraer product line and the forecast,
00:09we see everyone is solid on taking the aircraft.
00:12The campaigns that we have, they keep progressing.
00:14People are looking beyond the issues.
00:16We're currently looking at deliveries from 28 and beyond.
00:19So people need capacity.
00:22Further down the road, there's no slots becoming available.
00:25People aren't saying, I don't need that option.
00:27No, absolutely none of that.
00:29So far, there's no impact whatsoever.
00:30Do you expect it? Are you getting ready for it?
00:32Not at this point.
00:33Well, we're always working with scenarios.
00:35And we also have customers that would like to have more aircraft
00:38because we're completely sold out.
00:40But for now, there's no available options on the line until 2028.
00:45Okay.
00:47In terms of what we are seeing right now,
00:51how big an impact is the tariff story going to mean
00:55in terms of your access to the U.S. market?
00:57Even a few weeks ago, you were paying, what, 25% going into that market?
01:01Mm-hmm.
01:01That's now gone.
01:02The 301 tariffs have come in.
01:04You have a full exemption around that.
01:06How big an advantage is that now going to give you?
01:09I think, in the end, the tariffs that we had, the airlines have been paying that.
01:15Yep.
01:16But, of course, it was painful.
01:17And we believe, if we look at the amount of American content that we carry on our product,
01:22it actually makes sense to exclude aviation from the tariffs.
01:26So we believe it just eases a lot going forward.
01:29It created a lot of headaches in the delivery process.
01:32So we're very glad that the tariffs go forward and don't apply to the products.
01:36So there's a full exclusion now?
01:38Yes.
01:40In terms of, kind of, we've talked about a couple of headwinds.
01:43Let's talk about a tailwind.
01:44One of the big tailwinds that you have currently is the way that the government allows credit to be made
01:48available to your customers at very cheap rates.
01:51The import-export bank that you effectively have here in Brazil is a big advantage that you have.
01:55We've got a government that is about to change.
01:57We've got an election that is coming up.
01:58Any risks that you see to that key part of your sales pitch?
02:02Yeah, Embraer is agnostic when it comes to the politics.
02:07I think we have had a long run of good help from the government.
02:11With the current government, I mean, we had all the help that we need.
02:14We have a very strong export bank that helps us export the aircraft.
02:18And we believe that's going to remain strong going forward.
02:21That's not a risk.
02:22The new government is not going to change that.
02:23You don't see any risk of that.
02:24We would not expect so at this point in time.
02:26Okay.
02:27In terms of going forward from here, what do you plan?
02:32What is the next stage?
02:33At the moment, you sit under 150 seats.
02:36You haven't ventured beyond that.
02:37Yeah.
02:38But your current products are selling very well.
02:40Does that give you, are you happy in your space?
02:44Do you think what you are doing now could be transferred into a bigger aircraft that you
02:49could maybe compete maybe with some of the narrow bodies coming out of Boeing and Airbus?
02:52Yeah.
02:53Well, first of all, we already have a bigger aircraft.
02:55We were always around 120 seats.
02:57Now we're going almost to 150 seats.
02:59Yep.
02:59We brought that product only in 2018 and we're really now seeing the market picking it up.
03:04We have 24 customers on the program now, which we are extremely happy with.
03:07Yep.
03:07A three to one outsell versus the competition last year with 75 market share percent.
03:14We are as a company working on innovation verticals.
03:17So we're working hard on weight reductions and materials, industry 4.0.
03:23And we'll have to think how we're going to apply that to new products going forward.
03:26That could be commercial.
03:27That could be executive.
03:28That could be defense.
03:30And we're not in a rush.
03:31We have a very strong product line across all those business units, a brand new KC 390,
03:35brand new Praetis and Phenoms and a brand new E2 family.
03:39And also a 175 E1, which is still selling very strongly into the United States.
03:44So we're looking at all the options.
03:46And for now we are we're very happy in our space and very pleased with the results of the E2.
03:52You're one of the companies that seems to be able to get the engine story to work.
03:55You've been able to do that.
03:56You've had less problems with Pratt and Whitney engines.
03:59Your supply chain looks like it's slightly better.
04:02Does that give you a leap, kind of a jumping off point to do more?
04:08It's working at the moment.
04:10Could it work with a bigger operation?
04:12If you went up that next sort of stage, do you think you could deliver what you're delivering now?
04:17Is it because you are in the space that you're in, you're able to do what you're able to do?
04:21And if you stepped out of it, maybe the supply chain would struggle and you'd see similar issues that you're
04:25seeing elsewhere.
04:25Yeah, our first priority is to grow what we're doing now to get more units.
04:29And I think we've been working very closely when we talk about E2 with Pratt and Whitney.
04:33They've been very, very good partners.
04:35If I look to two, three years back to today, I mean, it's a night and day difference.
04:40The engines for the deliveries are on time.
04:42The support to the customers is excellent.
04:45Only six months ago, we had a significant number of AUGs.
04:49And today we're almost to one aircraft or maybe even zero today.
04:53So a lot of improvements.
04:54So I think that partnership really works.
04:57And we believe our first priority is to deliver more E2s to the market.
05:01And we are in very close cooperation, of course, with Pratt and Whitney to make that happen.
05:04So what does the next six months look like?
05:10Just to wrap things up.
05:13Does the uncertainty increase, decrease, customers coming back, changing what they want?
05:19Does it feel stable at the moment?
05:23Well, it's anyone's guess what's going to happen, of course, with the war in Iran.
05:28I think we all have our own expectations.
05:31But what we see today is that the customers are really asking us to deliver the aircraft, to accelerate the
05:37delivery.
05:38And I think what you have to keep in mind is that our segment is at the lower end.
05:42It has the lowest trip cost, the lowest fuel burn per trip.
05:45So if you talk about a market which is uncertain from a fuel perspective,
05:48it's actually our segment that works very well.
05:52You carry the passengers that are willing to pay the price.
05:55And you get an aircraft that's smaller that can do that.
05:5930% fuel burn reduction versus the previous generation.
06:03Those are big numbers.
06:04So we believe the current situation is tough.
06:08It's putting a lot of pressure on the customers.
06:10But if we look down the line, I think customers do see that this is a segment that actually helps
06:14them in times of headwinds.
06:18So it's aircraft that you need.
06:19It's not aircraft that you want to postpone.
06:21And so we're very confident in looking forward.
06:24But we also hope, of course, that situations improve soon.
06:28Because a coal market is better for everyone.
06:31if that's a scientific background and I won't anθ§ad or something.
06:31But, thanks, there's going to clarify.
06:31What I want to do, I think the agreement will give you as ablick,
06:31And so that's actually beenindustrie,
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