Black Friday Sale! Save huge on InvestingProGet up to 60% off

Embraer expects to select engine in Q4 for potential turboprop launch in 2023

Published 07/20/2022, 10:19 AM
Updated 07/20/2022, 04:41 PM
© Reuters. Signage for Embraer is seen on a trade pavilion at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra
RYCEY
-

(Reuters) -The head of Embraer's planemaking unit said on Wednesday it expects to select an engine in the fourth quarter for a potential new turboprop plane that the Brazilian company expects to launch in early to mid-2023.

Embraer Commercial Aviation Chief Executive Arjan Meijer said the company is talking to Raytheon Technologies (NYSE:RTX) unit Pratt & Whitney Canada and to Britain's Rolls-Royce (L:RR) about engines for the project.

The third major engine maker in the market, General Electric (NYSE:GE) Co, is not offering an engine, he added in an interview.

GE was not immediately available for comment.

Meijer said Embraer has letters of intent for "250-plus" aircraft from a broad slate of regions and types of operator, adding: "I underline 'plus'."

Embraer has been discussing returning to the turboprop sector since 2017 as it looks to expand its portfolio.

It said in 2020 it could opt for a combination of industrial and financial backing, though some analysts expect a more traditional approach based on risk-sharing deals with suppliers.

Turboprops are said to be more efficient on shorter trips and are particularly attractive at a time of higher oil prices.

© Reuters. Signage for Embraer is seen on a trade pavilion at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra

The market is currently dominated by Franco-Italian ATR, which has announced plans to switch to upgraded engines provided by Pratt & Whitney Canada.

Embraer, last year unveiled its concept for the turboprop featuring engines mounted at the rear of the aircraft, an unusual change from the more conventional wing-mounted engines.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.