UBS: Embraer Bizjet Unit Faces Uncertainties
Profitability could be a struggle for Embraer Executive Jets without offsets from Commercial Aviation unit, UBS cautions.
Embraer Executive Jets has been a disruptor in the business jet market, delivering more than 800 Phenom light jets in less than 10 years. However, UBS is concerned about the Embraer division after the commercial jet unit splits away from the company under a joint-venture deal with Boeing. (Photo: Chad Trautvetter/AIN)
Embraer Executive Jets has been a disruptor in the business jet market, delivering more than 800 Phenom light jets in less than 10 years. However, UBS is concerned about the Embraer division after the commercial jet unit splits away from the company under a joint-venture deal with Boeing. (Photo: Chad Trautvetter/AIN)

Embraer’s executive jet unit has proven itself a market disruptor, but whether it can sustain that level without new announced products in development and with discounted pricing remains to be seen, particularly as it is separated from the Brazilian manufacturer’s commercial aviation business, market analyst UBS Global Research said in an August 15 market report. Earlier this week at the LABACE show, Embraer executives expressed confidence, saying the business jet division is refining existing models and has plans for developing new products, as well as expanding its customer support.