Embraer tempts LATAM Airlines and Gol with its E-jets

Embraer is in discussions with Gol Linhas Aéreas and LATAM Airlines about possibly adding E-Jets to their fleets. According to Investing, negotiations are at an advanced stage, although details remain confidential.

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The information was revealed by Aloizio Mercadante, director of the Brazilian National Development Bank (BNDES). These negotiations are part of a Brazilian government initiative to encourage local airlines to incorporate domestically manufactured aircraft.

Both airlines have standardized fleets: LATAM Airlines operates only Airbus A320 family aircraft, while Gol has opted for the Boeing 737 NG and 737 MAX families. The Brazilian government aims to take advantage of delivery delays from Boeing and Airbus by offering Embraer E2 aircraft with delivery slots available from 2026.

Currently, in Brazil, only 12% of the commercial aircraft fleet consists of Embraer planes, prompting the government of Luiz Inácio Lula da Silva to promote the use of national aircraft to bolster regional aviation. This move also aims to support the Brazilian manufacturer and the local aerospace industry.

Additionally, this push may be connected to the aftermath of the COVID-19 pandemic. The Ministry of Finance and BNDES are discussing a support package for companies still suffering from the recession caused by COVID-19.

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The introduction of Embraer aircraft into the fleets of LATAM and Gol could be significant, as neither company has operated regional jets in recent decades. Both companies have signed codeshare agreements with regional airlines like VOEPASS to cover destinations they cannot reach.

Another crucial factor is crew training, which adds to the operational costs of introducing a new aircraft. Both companies would need to train their pilots, cabin crews, mechanics, and ground staff for Embraer aircraft.

This point is particularly important as both airlines have sought bankruptcy protection in the United States. Gol recently filed for Chapter 11, while LATAM Airlines emerged from bankruptcy not long ago.

One of LATAM’s strategies was to standardize its wide-body fleet to Boeing 777-300ER and 787 Dreamliner aircraft, phasing out the Airbus A350-900, since both share a similar flight philosophy.

Fleet standardization allows companies to reduce maintenance and training costs. Pilots only need to be certified for that aircraft family, Airbus A320 or Boeing 737, enabling them to operate all variants without requiring additional type certifications.