Led by Johann Bordais, currently director of services and support for Embraer Commercial Aviation, the new division will begin operating in the first half of 2017 with a remit to develop support solutions for existing and future products and services, along with managing associated processes and resources.
The thinking behind the move appears to center on growth and integration, according to Paulo Cesar Silva, Embraer president and CEO. “The new business will bring together capabilities that are currently spread throughout different business areas to offer customers a broad portfolio of solutions,” he said. “We see an opportunity to expand and integrate services and support.”
Silva had previously been vocal about Embraer’s potential aftermarket growth. Last week in a Dec. 15 editorial roundtable with Aviation Week editors, he spoke of the aftermarket opportunities Embraer needed to explore in terms of offerings while stating the manufacturer’s need for “better penetration for services.”
According to Aviation Week, Silva also revealed during the roundtable that at present, 15 per cent of Embraer’s revenues come from services, with the possibility of accounting for 20 per cent in three years and further growing to 25 per cent in around 10 years’ time.
Currently around 2,000 Embraer-made aircraft are operating in the global commercial fleet, and with this comes potential for lucrative financial gain.
As detailed in Aviation Week's 2017 Commercial Aviation Fleet & MRO Forecast, there is a growing MRO market for Embraer aircraft and their associated engines. For instance, engine events on the CF34 Family engine powering the E190 jet are expected to nearly double from 2017 up to 2026. Other services such as component work, line maintenance and modifications are also expected to be financially attractive.
Embraer’s announcement at the tail-end of 2016 further cements the year as a significant one for a growth in OEM aftermarket services.
In moves designed to grow services, Boeing announced a newly created division, Boeing Global Services, headed up by Stan Deal as president and CEO. This was coupled with announcing Kevin McAllister, a key player in driving GE Aviation’s lucrative services division, as the new head of its commercial aircraft division to replace the retiring Ray Conner.
Boeing has also sought to expand the scope of its GoldCare aftermarket offering in Europe by unveiling plans for a key new facility located at London Gatwick Airport. Airbus and Bombardier also added some key existing customer contracts for their maintenance services.