The duopoly with Bombardier
Like the jet market rivalry between Boeing and Airbus in the large jet market, Embraer (ERJ) is in bitter competition with Bombardier (BDRBF), its major jet market rival in the regional and business jet market. They both act as suppliers to many regional players such as Air France (AFLYY), Copa Holdings (CPA), and Delta Air Lines (DAL), which are part of the iBillionaire Index ETF (IBLN). This has led to the formation of a duopoly between Embraer and Bombardier. Bombardier is said to have launched what we know as the regional jet era with the launch of its CRJ program in 1989. It ruled the regional jet market until 1998. In the same period, Embraer worked toward taking ground in the market with its E-Jet series.
The game changed when Embraer and Bombardier decided to develop the new CSeries jet from scratch, which was launched in 2008. Embraer, on the other hand, decided to revamp its E-Jets rather than replace them with a brand new aircraft. Its new E2 series was launched in 2013.
This E2 jet has been very important in putting Embraer on the map. Let’s find out in our next article how the E2 helped Embraer strengthen its hold in the jet market.