Embraer will remove an entire layer of if its management structure as part of a plan to lay off 20 percent of its 21,362-strong workforce, the company announced today. In a prepared statement, the company said it would concentrate the cuts in production and administration areas, while it keeps the “significant majority” of the engineering workforce to continue new product development and technology.
There are reasons for smiles among the staff at Brazilian aircraft manufacturer Embraer, most notably the traction the company’s Embraer Executive Jets division has achieved.
While other major manufacturers are struggling to find the right production organization or have spent years changing their minds about what product to launch next, Embraer has been quietly reaping the fruits of a sound management strategy, according to independent financial analysts.
Embraer is here at Farnborough exhibiting a Legacy 600 demonstrator and mock-ups of its new Phenom 300 and Lineage 1000 business jets. While the 10- to
16-seat Legacy 600 is currently its only executive jet in service, the Brazilian manufacturer is preparing to have a family of six business aircraft by 2013. Income from this market is projected to increase from the current 16 percent of the group’s revenues to 25 percent in 2010.
In October 2006, the Embraer board of directors authorized expenditure of $100 million on customer support. At the same time, the Brazilian manufacturer announced an expansion of its Executive Jets authorized service network in the U.S. and Europe and said that by mid-2008 its customer support network would comprise seven wholly owned and 38 authorized service centers in all regions of the world.
The EASA has issued a Part 145 approval certificate to Embraer’s new executive jets center at Le Bourget Airport. The 37,600-sq-ft facility with 20,500-sq-ft hangar is dedicated exclusively to the Embraer executive jets fleet. It joins an existing service center network that includes OGMA, in Portugal, and another four Embraer authorized service centers in the region.
The Airholding consortium led by Embraer of Brazil, with EADS as a minority partner, has taken a majority stake in Portuguese aircraft maintenance specialist Ogma, following the latter’s privatization late last year. European Union competition authorities have since approved the ?11.4 million ($14 million) deal, in which a company controlled by the Portuguese government retains the remaining 35 percent of the shareholding.
EADS Sogerma Services has come to the Dubai airshow (Stand No. C206) with a new strategy that it hopes will balance its books after a period of losses. According to Bernard Pommier, vice president of corporate communications, the key to the future of the wholly owned EADS subsidiary lies with its decision to reposition from its traditional aircraft maintenance business.
Employees at EADS Sogerma Services’ Merignac aircraft maintenance near Bordeaux in southwest France still have jobs thanks to French Prime Minister Dominique de Villepin. EADS’ top management caved in to De Villepin’s demands that they abandon plans to shut the loss-making facility, agreeing to a temporary reprieve and the salvation of some jobs.
Representatives from Euratlantic, an alliance of 13 European regions, are at Booth No. 3276 hoping to attract U.S. investors. The confederation, which spans a geographic region from France’s Normandy coast down to Andalusia in the south of Spain, claims to have special expertise in mechanical engineering and materials for aerospace applications.