Editing Embraer (section)

==History==
Seeking to develop a domestic aircraft industry, the [[Politics of Brazil|Brazilian government]] under then President [[Getúlio Vargas]]' [[Estado Novo (Brazil)|Estado Novo]] made several investments in the aerospace industry during the 1940s and 1950s.<ref name= oecd>{{Citation |url=https://books.google.com/books?id=gWhk65rEU-4C&pg=PA156 |publisher=OECD |title=Territorial Reviews |place=Madrid, [[Spain|ES]] |pages=156–57, 264 |year=2007 |isbn=978-92-64-03848-6}}</ref> However, it was not until 1969, following the establishment of the [[Military dictatorship in Brazil|Brazilian military dictatorship]] after the [[1964 Brazilian coup d'état|1964 coup d'état]], that '''''Em'''presa '''Br'''asileira de '''Aer'''onáutica'' (Brazilian Aeronautics Corporation, short Embraer) was created as a [[government-owned corporation]].<ref>{{cite book |title=A Dictionary of Aviation |first=David W. |last=Wragg |isbn=9780850451634 |edition=first |publisher=Osprey |year=1973 |page=119}}</ref><ref name="time">{{Citation |title=History of Embraer |type=official site |url=https://historicalcenter.embraer.com/global/en/history |url-status=live |contribution= |contribution-url= |place=BR |publisher=Embraer}}.</ref> Its first president, [[Ozires Silva]], was a government appointee, and the company initially only produced a [[turboprop]] passenger aircraft, the [[Embraer EMB 110 Bandeirante]].<ref>{{cite web |url=http://epocanegocios.globo.com/Informacao/Visao/noticia/2012/12/ozires-silva.html |date=28 January 2014 |access-date=24 October 2014 |title=Ozires Silva |publisher=[[Época Negócios]] |language=pt}}</ref> The city of São José dos Campos was chosen to host the company's headquarters because it had already hosted, since 1950, the [[Instituto Tecnológico de Aeronáutica|Technological Institute of Aeronautics (ITA)]], the first higher education institution in Brazil dedicated to the aerospace sector.<ref>{{cite web |url=https://journalofwonder.embraer.com/br/pt/28-brasileiros-notaveis-alunos-do-ita-nosso-parceiro-estrategico |date=8 February 2019 |access-date=28 December 2024 |title=Brasileiros notáveis alunos do ITA, nosso parceiro estratégico |language=pt-br}}</ref><ref>{{cite web |url=https://news.mit.edu/2015/two-school-foundings-link-mit-advances-brazilian-education-0319 |title=Two school foundings, 63 years apart, link MIT with advances in Brazilian education |website=[[Massachusetts Institute of Technology]]}}</ref> 

===Early growth===
The Brazilian government contributed to Embraer's early growth by providing production contracts.<ref name= history>{{Citation |contribution-url=http://www.centrohistoricoembraer.com.br/en-US/HistoriaEmbraer/Pages/Historico.aspx |contribution=History |publisher=Embraer |title=Historical Center |type=official site |place=BR |access-date=2012-12-26 |archive-date=2017-04-28 |archive-url=https://web.archive.org/web/20170428194524/http://www.centrohistoricoembraer.com.br/en-US/HistoriaEmbraer/Pages/Historico.aspx |url-status=dead}}.</ref> The company sold solely to the domestic market until 1975.

While military aircraft made up the majority of Embraer's products during the 1970s and early 1980s, including the [[Embraer AT-26 Xavante]] and the [[Embraer EMB 312 Tucano]],{{Citation needed|date= October 2010}} it debuted a [[regional airliner]], the [[Embraer EMB 110 Bandeirante]], which made its first flight in 1968,<ref name=":2">{{Citation |url=https://skybrary.aero/aircraft/e110.main?id=196 |title=The Embraer EMB110 Bandeirante |publisher=Sky Library}}{{Dead link|date=September 2024 |bot=InternetArchiveBot |fix-attempted=yes }}.</ref> and the [[Embraer EMB 120 Brasilia]], launched in 1985.<ref name=":3">{{Citation |url=http://www.airliners.net/aircraft-data/stats.main?id=196 |title=The Embraer EMB120 Brasilia |publisher=Air liners}}.</ref> Aimed at the export market, the EMB family was the first in a series of highly successful small and regional airliners.<ref name=MM/>

In addition to its own line of aircraft, beginning in 1974, Embraer was licensed by the United States' [[Piper Aircraft]] to develop, produce, and market its light airplanes,<ref name= piper>{{Citation |contribution-url=http://centrohistorico.embraer.com.br/en/historia-aeronaves/emb-710-carioca.htm |place=BR |title=Aircraft History |contribution=EMB 710 Carioca |publisher=Embraer History Center}}.</ref> as Brazil was one of the world's leading importers of small single- or twin-engine aircraft.<ref name=":4" /> Piper first put together [[knock-down kit]]s in its U.S. factory for Embraer to then assemble and market in Brazil and Latin America.<ref name=":5" /> By 1978, most parts and components were being sourced by Embraer locally.<ref name= piper /> The aircraft were sold as the [[Piper PA-31 Navajo|EMB 820 Navajo (Piper Navajo Chieftain)]], [[Piper PA-34 Seneca|EMB 810 Seneca (Piper Seneca III)]], [[Piper PA-32 Cherokee Six|EMB 720 Minuano (Cherokee Six)]], EMB 710 Carioca aircraft (Cherokee 235 Pathfinder) and the EMB 711 Corisco (Cherokee Arrow II). Between 1974 and 2000, nearly 2,500 license-built Pipers were produced by Embraer.<ref name =piper />

===Acquisition of Aerotec===
[[Aerotec S/A Indústria Aeronáutica]] was a design and manufacturing company founded in [[São José dos Campos]] in 1962 under the auspices of the [[Department of Aerospace Science and Technology|Brazilian General Command for Aerospace Technology]].  Beginning in the late 1960s, the firm manufactured a two-seat trainer for the Brazilian Air Force, the [[Aerotec A-122 Uirapuru|Aerotec Uirapuru]]. A small number were also built for the civilian market, and others were exported to other Latin American countries.{{citation needed |date= April 2020}}

By 1980, Aerotec's main business was producing components for Embraer. However, around this time, the [[Brazilian Air Force]] became interested in an upgraded version of the Uirapuru. A prototype, designated [[Aerotec A-132 Tangará|Uirapuru II]], was built; but, by the time it flew, the Air Force no longer required it. A small number were built for export. In 1987, the firm was sold to Embraer.

===Privatization===
Born from a Brazilian government plan and having been state-run,<ref name= oecd /> Embraer eventually started a privatisation process in 1992 alongside other state-run companies, such as [[Telebrás]] and [[Vale S.A.|Vale]]. Privatisation was a key policy of the economically liberal government of [[Fernando Collor de Mello|Fernando Collor]], elected in the [[1989 Brazilian presidential election|1989 presidential election]].<ref name=":4">{{Citation |title=Brazil on Road Peddling State-Owned Enterprises |edition=final |first=John |last=Eckhouse |newspaper=The San Francisco Chronicle |place=San Francisco, [[California|CA]], [[United States of America|US]] |date=January 12, 1991 |page=B.1}}.</ref>

Embraer was sold to private investors on December 7, 1994,<ref name=time/><ref name=":5">{{cite journal |last1=Anuatti-Neto |first1=Francisco |last2=Barossi-Filho |first2=Milton |last3=Carvalho |first3=Antonio Gledson de |last4=Macedo |first4=Roberto |title=Os efeitos da privatização sobre o desempenho econômico e financeiro das empresas privatizadas |trans-title=The effects of privatization on the economic and financial performance of privatized companies |language=pt |journal=Revista Brasileira de Economia |date=June 2005 |volume=59 |issue=2 |doi=10.1590/S0034-71402005000200001 |doi-access=free}}</ref> which helped it avoid a looming bankruptcy.<ref name= oecd /> The Brazilian government retained interest through possession of [[golden share]]s, which allow it veto power.<ref name=MM>{{Citation |title=Corporate Governance |first1=Robert AG |last1=Monks |first2=Nell |last2=Minow |publisher=John Wiley & Sons |year=2008 |pages=356–59}}</ref> Embraer continued to win government contracts throughout the 2000s and 2010s.{{Citation needed|date=October 2010}}

===Initial public offerings===
In 2000, Embraer made simultaneous [[initial public offering]]s on the [[NYSE]] and [[B3 (stock exchange)|BM&F Bovespa]] stock exchanges. As of 2008 its NYSE-traded shares were [[American depositary receipt]]s representing four BM&F Bovespa shares and it was partially owned by the Bozano Group (11.10%), Previ (16.40%), Sistel (7.40%), [[Dassault Aviation]] (2.1%), [[EADS]] (2.1%), [[Thales Group|Thales]] (2.1%), [[Safran]] (1.1%), and the government of Brazil (0.3% and [[golden share]]), the remainder being publicly traded.<ref name=MM/>

As of December 31, 2014 the shareholders with more than 5% of the company's capital were:<ref>{{Cite web |url=http://ri.embraer.com.br/show.aspx?idCanal=ltPlKaoPDWiQ1uj7aoUw6Q==&linguagem=en |title=Capital Ownership |publisher=Embraer |work=Investor Relations |access-date=2016-05-24 |archive-date=2012-02-13 |archive-url=https://web.archive.org/web/20120213010711/http://ri.embraer.com.br/show.aspx?idCanal=ltPlKaoPDWiQ1uj7aoUw6Q==&linguagem=en |url-status=dead}}</ref>
* [[OppenheimerFunds]], 12.29%
* [[Caixa de Previdência dos Funcionários do Banco do Brasil]], 6.71%
* [[Baillie Gifford]], 6.46%
* [[Brazilian Development Bank|BNDESPAR]], 5.31%.

===Product line expansion: military, regional and executive===
In the mid-1990s, the company pursued a product line focused on small commercial airplanes over the military aircraft that had previously made up the majority of its manufacturing.<ref name= oecd /> It soon expanded to the production of larger regional airliners in the 70–110 seat range, and smaller [[business jets]].<ref name=MM/>

By May 2019, Embraer considered developing a [[Embraer next-generation turboprop|new family]] of turboprop [[regional airliner]]s in the 50–70 seat range, complementing the [[Embraer E-Jet E2 family|E-Jet E2]], so as to free engineering resources.<ref>{{cite news |url=https://www.flightglobal.com/news/articles/embraer-still-eyeing-development-of-turboprop-famil-462231/ |title=Embraer still eyeing development of turboprop family |date=14 November 2019 |first=Jon |last=Hemmerdinger |work=Flightglobal}}</ref><ref>{{cite news |title=No new turboprop from Embraer for now |url=https://leehamnews.com/2019/05/27/no-new-turboprop-from-embraer-for-now/ |work=Leeham News and Analysis |date=27 May 2019}}</ref> It would compete against older [[ATR (aircraft manufacturer)|ATR]] and [[Dash 8]] designs for 1.5 to 2&nbsp;h flights over {{cvt|500-700|nmi|km}}.<ref name=Flight29oct2020>{{cite news |url=https://www.flightglobal.com/airframers/embraer-tweets-picture-of-conceptual-turboprop-hints-at-potential-design/140876.article |title=Embraer tweets picture of conceptual turboprop, hints at potential design |author=Jon Hemmerdinger |date=29 October 2020 |work=Flightglobal}}</ref> In August 2021, Embraer released a new configuration with quieter aft-mounted engines for a 70-90 seat aircraft, with the E-Jet cross-section, aiming for a 2022 launch and a 2027/2028 service entry.<ref>{{cite news |url=https://www.flightglobal.com/airframers/embraer-tweaks-turboprop-concept-to-have-aft-mounted-engines/145078.article |title=Embraer tweaks turboprop concept to have aft-mounted engines |author=Jon Hemmerdinger |date=13 August 2021 |work=Flightglobal}}</ref>

=== Executive jets ===
At the 2000 [[Farnborough Airshow]], Embraer introduced the [[Embraer Legacy 600|Legacy 600]], a [[business jet]] variant of the [[Embraer ERJ family|Embraer Regional Jet]], which entered service in 2002.<ref>{{Cite web |title=Embraer Executive Jets |url=https://www.bjtonline.com/company/embraer-executive-jets |access-date=2025-04-22 |website=Business Jet Traveler |language=en}}</ref> ''Embraer Executive Jets'' was created as a dedicated subsidiary in 2005. That same year, the [[Embraer Phenom 100|Phenom 100]] was envisioned as an [[air taxi]] similar to the [[Eclipse 500]], competing with [[Cessna]] and [[Hawker Beechcraft]]. It was introduced in 2008 and is the basis of the larger [[Embraer Phenom 300|Phenom 300]]. The midsize [[Embraer Legacy 450/500 and Praetor 500/600|Legacy 450]] and [[Embraer Legacy 450/500 and Praetor 500/600|Legacy 500]] were jointly developed as clean sheet designs, while the [[Embraer Lineage 1000|Lineage 1000]] is a VIP version of the [[Embraer E-Jet family|E190]]. In 2016, Embraer delivered its 1,000th executive jet and had a market share of 17% by volume, though it lacked an ultra-long-range large cabin jet.<ref>{{cite news |url=https://www.flightglobal.com/news/articles/ebace-embraer-caps-16-year-run-with-1000th-deliver-424532/ |title=EBACE: Embraer caps 16-year run with 1,000th delivery |publisher=[[Flightglobal]] |date=17 May 2016}}</ref> In October 2018 Embraer announced two new business jets—the [[Embraer Legacy 450/500 and Praetor 500/600|Praetor 500]] in the midsize cabin category—and the [[Embraer Legacy 450/500 and Praetor 500/600|Praetor 600]] in the super midsize category.<ref>{{Cite web |work=Aviation Today |url=https://www.aviationtoday.com/2018/10/17/embraer-praetor-500600-make-public-debut-nbaa-2018/ |title=Embraer Praetor 500/600 Make Public Debut at NBAA 2018 |date=2018-10-17}}</ref>

===Military transport===
On April 19, 2007, Embraer announced it was considering the production of a twin-jet military transport. Work began in May 2009 with funding from the Brazilian Air Force.<ref name= beeb>{{Citation |title=Portugal interested in Brazilian military cargo plane |publisher=BBC |newspaper=Monitoring European |date=February 1, 2010}}.</ref> [[Correios]], the Brazilian postal service, has shown interest in buying this aircraft.<ref>{{Citation |url=http://www.monitormercantil.com.br/imprimir_noticia.asp?id2=44595 |title=Costa confirma projeto dos Correios com cargueiro C-390 |newspaper=Monitor Mercantil |date=August 28, 2007 |access-date=October 15, 2007 |archive-date=December 14, 2007 |archive-url=https://web.archive.org/web/20071214092757/http://www.monitormercantil.com.br/imprimir_noticia.asp?id2=44595 |url-status=dead}}.</ref><ref>{{Citation |url=http://www.flightglobal.com/articles/2007/09/04/216557/brazilian-postal-service-may-order-embraer-c-390-freighters.html |title=Brazilian postal service may order Embraer C-390 freighters |newspaper=Flight global |date=September 4, 2007 |access-date=October 15, 2007}}.</ref> Using much of the technology developed for the Embraer 190, the C-390 would carry up to 23 tons of cargo<ref>{{cite web |url=http://www.embraerdefensesystems.com/english/content/cargo/performance.asp |title=Defense Systems |publisher=Embraer |access-date=2013-03-21 |url-status=dead |archive-url=https://web.archive.org/web/20130424125132/http://www.embraerdefensesystems.com/english/content/cargo/performance.asp |archive-date=2013-04-24}}</ref> and aims to replace [[Cold War]]-era cargo aircraft.<ref>{{Citation |url=http://www.embraer.com.br/institucional/download/2_025-Com-VPD-_C-390-I-07.pdf |title=Embraer has military transport aircraft under study |publisher=Embraer |access-date=2009-03-20 |archive-url=https://web.archive.org/web/20090320192110/http://www.embraer.com.br/institucional/download/2_025-Com-VPD-_C-390-I-07.pdf |archive-date=2009-03-20 |url-status=dead}}.</ref>

While firm orders for the yet-to-be-produced [[Embraer C-390 Millennium|KC-390]] transport had not yet been made in the fall of 2010,<ref name=beeb/> Argentina asked for six examples and several other South American nations also expressed interest.<ref name= samnat>{{Citation |title=Argentina to buy 6 military transport jets from Brazil's Embraer |publisher=EFE News Service |place=Madrid |date=October 30, 2010}}.</ref><ref>{{Citation |title=Defense Watch |newspaper=Defense Daily |place=Potomac |date=September 7, 2010 |volume=247 |issue=47}}.</ref>

===Government subsidy controversy===
{{main|Bombardier Aerospace and Embraer S.A. government subsidy controversy}}

Brazil and Canada engaged in an international, adjudicated trade dispute over government subsidies to domestic plane-makers in the late 1990s and early 2000s. The [[World Trade Organization]] determined that both countries had provided illegal subsidies to what were supposed to be privately owned industries. Brazil ran an illegal subsidy program, Proex, benefiting its national aviation industry from at least 1999–2000, and Canada illegally subsidized its indigenous regional airliner industry including in export contracts, comprising [[Bombardier Aviation|Bombardier Aerospace]].

===Failed Boeing-Embraer joint venture===
{{main|Boeing-Embraer joint venture}}

On July 5, 2018, a [[joint venture]] with Boeing was announced that would have resulted in Boeing owning 80% of Embraer's commercial aviation division.<ref name= 5jul2018PR>{{cite press release |title=Boeing and Embraer to Establish Strategic Aerospace Partnership to Accelerate Global Aerospace Growth |date=July 5, 2018 |url=http://boeing.mediaroom.com/2018-07-05-Boeing-and-Embraer-to-Establish-Strategic-Aerospace-Partnership-to-Accelerate-Global-Aerospace-Growth |publisher=Boeing}}</ref> This was seen as a reaction to Airbus' acquisition of a majority in the competing [[Bombardier CSeries]] the previous year.<ref>{{cite news |title=Boeing Is in Talks for Combination With Regional-Jet Maker Embraer |url=https://www.bloomberg.com/news/articles/2017-12-21/boeing-is-said-in-talks-to-acquire-embraer-wsj-reports |agency=Bloomberg |date=21 December 2017}}</ref> Under the 2018 plan, Embraer would retain its executive business jet and its [[Defence industry|defence business]].<ref name=Flight11oct2018>{{cite news |url=https://www.flightglobal.com/news/articles/embraer-boeing-agreement-lays-out-terms-of-proposed-452616/ |title=Embraer-Boeing agreement lays out terms of proposed joint venture |date=11 Oct 2018 |first=Jon |last=Hemmerdinger |work=Flightglobal}}</ref> The resulting division would be known as '''Boeing Brasil{{snd}}Commercial''', though it was unclear whether the aircraft would be rebranded as Boeing models.<ref>{{cite news |last1=Rochabrun |first1=Marcelo |title=Boeing drops Embraer name from Brazil commercial jet division |url=https://www.reuters.com/article/us-embraer-m-a-boeing/boeing-drops-embraer-name-from-brazil-commercial-jet-division-idUSKCN1ST2O7 |work=Reuters |date=May 23, 2019 |language=en}}</ref>

On November 18, 2019, Boeing and Embraer announced another joint venture, at 49% and 51% respectively, to promote and develop new markets for the C-390 Millennium tactical transport aircraft; the resulting entity would be called [[Boeing–Embraer joint venture#Boeing Embraer - Defense|Boeing Embraer – Defense]] and would begin operating after regulatory approvals and closing conditions.<ref>{{cite press release |url=https://boeing.mediaroom.com/2019-11-18-Boeing-Embraer-Defense-Joint-Venture-to-Develop-New-Markets-for-the-C-390-Millennium |title=Boeing Embraer – Defense Joint Venture to Develop New Markets for the C-390 Millennium |date=Nov 18, 2019 |publisher=Boeing}}</ref>

In April 2020, Boeing canceled its acquisition of Embraer's commercial operations after being heavily affected financially by the air crisis initiated by the [[COVID-19 pandemic]] and by the [[Boeing 737 MAX groundings|737 MAX groundings]].<ref>{{cite news |title=Pressões políticas e Covid-19 fazem Boeing desistir da compra da Embraer |url=https://veja.abril.com.br/economia/pressoes-politicas-e-covid-19-fazem-boeing-desistir-da-compra-da-embraer |website=Veja |language=pt |access-date=25 April 2020}}</ref><ref>{{cite news |title=Boeing rescinde acordo de compra da área da aviação comercial da Embraer |url=https://g1.globo.com/sp/vale-do-paraiba-regiao/noticia/2020/04/25/boeing-rescinde-acordo-comprar-area-da-aviacao-comercial-da-embraer.ghtml |website=G1 |language=pt |access-date=25 April 2020}}</ref><ref>{{Cite web |work=Flight global |url=https://www.flightglobal.com/aerospace/boeing-walks-away-from-embraer-tie-up/138076.article |title=Boeing walks away from Embraer tie-up}}</ref>

In November 2020, Embraer announced that its loss for the third quarter of the year is $121 million due to the COVID-19 pandemic and the travel restrictions.<ref>{{Cite news |author=Rochabrun |first1=Marcelo |last2=Heavens |first2=Louise |last3=Evans |first3=David |date=2020-11-10 |title=Brazil's Embraer posts $121 million loss on coronavirus travel disruptions |language=en |work=Reuters |url=https://www.reuters.com/article/us-embraer-results-idUSKBN27Q19J |access-date=2020-11-10}}</ref>

===STOUT light military transport aircraft===
In December 2019, Embraer and the Brazilian Air Force tackled the development of a light [[military transport aircraft]].<ref name=Flight17nov2020/> The [[Embraer Short Take Off Utility Transport|Short Take Off Utility Transport]] (STOUT) would replace its 64 EMB-110 Bandeirante (average age of 38.3 years) and 19 EMB-120 Brasilia (average age of 26.5 years) with similar dimensions.<ref name=Flight17nov2020>{{cite news |url=https://www.flightglobal.com/fixed-wing/embraer-shows-images-of-new-hybrid-electric-short-takeoff-transport/141148.article |title=Embraer shows images of new hybrid-electric short-takeoff transport |author=Garrett Reim |date=17 November 2020 |work=Flightglobal}}</ref>