Material Fact: Pause in the E175-E2 Jet Development Program

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) announced a three-year pause in the development of its E175-E2 jet program due to ongoing discussions with US pilot unions and current market conditions. The decision is influenced by the maximum take-off weight limitations for 76-seat aircraft and sustained interest in the existing E175 model. The company plans to resume development activities after the pause, aiming to enter service between 2027 and 2028. Embraer remains committed to innovation and will keep shareholders updated on significant developments.

Positive

• Resumption of development activities expected post-pause.
• Continued interest in the current E175 jet in the US market.

Negative

• Three-year delay in E175-E2 jet development.
• Ongoing discussions with pilot unions affecting program timeline.

SÃO JOSE DOS CAMPOS, Brazil, Feb. 18, 2022 /PRNewswire/ -- Embraer S.A. (B3: EMBR3, NYSE: ERJ) (the "Company"), in compliance with the CVM Resolution 44/2021, informs its shareholders and the market that today the Board of Directors approved a three-year pause in its E175-E2 jet development program.

As in previous years, the re-programing of activities is associated with the ongoing US mainline scope clause discussions with the pilot unions regarding the maximum take-off weight (MTOW) limitation for aircraft with up to 76 seats, together with current global market conditions for commercial aviation and the continuing interest in the current E175 jet in the US market.

The Company expects to resume the program development activities following the aforementioned period, which will result in a re-programming of the aircraft entry into service between 2027 and 2028.

In keeping with its strategy of innovation and growth, the Company will maintain its shareholders and the market duly informed about new material information relating to the transaction.

View original content:https://www.prnewswire.com/news-releases/material-fact-pause-in-the-e175-e2-jet-development-program-301486011.html

SOURCE Embraer S.A.

FAQ

What caused Embraer to pause the E175-E2 jet development?

The pause is due to ongoing discussions regarding maximum take-off weight limitations with US pilot unions and current global market conditions for commercial aviation.

When is the E175-E2 jet expected to enter service?

The E175-E2 jet is expected to enter service between 2027 and 2028 after the development pause.

What is the stock symbol for Embraer?

The stock symbol for Embraer is ERJ.

How long is the pause in E175-E2 jet development?

The pause in the E175-E2 jet development program is set for three years.

What is Embraer's strategy during the pause in development?

Embraer aims to maintain innovation and growth while keeping shareholders informed of significant updates.