IndiGo: Brazil’s Embraer eyes stronger India foothold, begins talks with Air India, IndiGo

Embraer is optimistic about the potential for growth in India, particularly within the commercial and business jet sectors, as well as military aircraft and eVTOL (electric vertical takeoff and landing) markets, PTI reported on June 2 quoting CEO Francisco Gomes Neto. The Brazilian aerospace manufacturer aims to expand its presence in India’s rapidly developing market.

In addition, the company is currently in discussions with IndiGo and Air India regarding the sale of its E-2 aircraft, which can accommodate up to 146 passengers.

At present, Embraer operates nearly 50 aircraft across 11 different types in India, serving both commercial and business aviation as well as defense sectors. In the civilian aircraft market, Embraer aircraft are utilised by regional airlines such as Star Air, and various entities are also employing the company’s business jets.

To seize new opportunities, Embraer has established a wholly-owned subsidiary in India, with its headquarters located in the capital city.

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In an exclusive interview with PTI, Neto revealed the company’s plans to create a procurement team dedicated to identifying prospects within the Indian supply chain, and to investigate the acquisition of components and services sourced from India.The company is also in the process of hiring individuals in India for roles in government relations, communications, procurement, engineering, as well as sales and marketing.Neto highlighted that “India is the third largest market in aviation globally,” and emphasized the plentiful opportunities available for Embraer’s diverse range of products, including commercial jets, business jets, military aircraft, and eVTOLs. He stated, “This is why we aim to deepen our collaboration with India, and the establishment of our subsidiary is a significant step in that direction.”

When questioned about the possibility of launching a Maintenance, Repair and Overhaul (MRO) facility for civilian aircraft in India, Neto indicated that such a decision would hinge on the volume of aircraft orders received.

Raul Villaron, Senior Vice President of Sales & Marketing and Head of Region for Asia Pacific at Embraer Commercial Aviation, confirmed that discussions with IndiGo and Air India are ongoing. He pointed out that many untapped markets in India are either too small for narrow-body aircraft or too long for turboprop models, suggesting that “the E2 is right in the sweet spot.” The E195-E2 jets can be configured to hold up to 146 passengers depending on specific layouts.

Villaron explained that previously, it was challenging for Embraer to penetrate the Indian market due to the characteristics of their earlier products, as the E1 jets focused more on trip costs rather than seat costs. He noted, “Now we have the E2, which offers a highly competitive seat cost, making us more competitive in the Indian landscape.”

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Embraer is also well-established in the Indian defence sector. Last year, the company’s Defense & Security division collaborated with Mahindra Defence Systems, signing a Memorandum of Understanding (MoU) to explore joint efforts in pursuing the Indian Air Force’s Medium Transport Aircraft (MTA) program using the C-390 Millennium.

Notable Embraer aircraft in service with Indian forces include the Legacy 600, which is used by the Indian Air Force (IAF) and Border Security Force (BSF) for transporting government officials and VIPs, as well as the Netra AEW&C aircraft, which is based on the Embraer ERJ145 platform and operated by the IAF.

Regarding the business jet market, Neto foresees greater opportunities arising with regulatory adjustments. He noted the rising global interest in eVTOL aircraft as a vital solution for urban mobility. Neto is currently in the national capital to participate in the annual general meeting of the International Air Transport Association (IATA).

He also acknowledged the significant potential for growth in bilateral trade between India and Brazil, which currently remains modest.

“We see many opportunities,” Neto remarked, emphasising not only the long-standing relationship between the two nations but also their shared membership in BRICS. He expressed optimism that collaboration and trade among countries in the Global South would increase.

The United States remains Embraer’s largest market, and when asked about concerns related to tariff uncertainties, Neto noted that tariffs add layers of complexity and costs to the industry. He mentioned that the company is in the process of adapting to these challenges.

“However, we do not anticipate any changes to the guidance we provide regarding our expected revenues, profits, and cash generation for 2025,” he observed.

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