Embraer

Seeking to develop a domestic aircraft industry, the Brazilian government under then President Getúlio Vargas' Estado Novo made several investments in the aerospace industry during the 1940s and 1950s. However, it was not until 1969, following the establishment of the Brazilian military dictatorship after the 1964 coup d'état, that Empresa Brasileira de Aeronáutica (Brazilian Aeronautics Corporation, shortened by syllabic abbreviation to Embraer) was created as a government-owned corporation. Its first president, Ozires Silva, was a government appointee, and the company initially only produced a turboprop passenger aircraft, the Embraer EMB 110 Bandeirante. The city of São José dos Campos was chosen to host the company's headquarters because it had already hosted, since 1950, the Technological Institute of Aeronautics (ITA), the first higher education institution in Brazil dedicated to the aerospace sector.

Early growth

The Brazilian government contributed to Embraer's early growth by providing production contracts. The company sold solely to the domestic market until 1975.

While military aircraft made up the majority of Embraer's products during the 1970s and early 1980s, including the Embraer AT-26 Xavante and the Embraer EMB 312 Tucano, it debuted a regional airliner, the Embraer EMB 110 Bandeirante, which made its first flight in 1968, and the Embraer EMB 120 Brasilia, launched in 1985. Aimed at the export market, the EMB family was the first in a production series of small and regional airliners.

In addition to its own line of aircraft, beginning in 1974, Embraer was licensed by the United States' Piper Aircraft to develop, produce, and market its light airplanes, as Brazil was one of the world's leading importers of small single- or twin-engine aircraft. Piper first put together knock-down kits in its U.S. factory for Embraer to then assemble and market in Brazil and Latin America. By 1978, most parts and components were being sourced by Embraer locally. The aircraft were sold as the EMB 820 Navajo (Piper Navajo Chieftain), EMB 810 Seneca (Piper Seneca III), EMB 720 Minuano (Cherokee Six), EMB 710 Carioca aircraft (Cherokee 235 Pathfinder) and the EMB 711 Corisco (Cherokee Arrow II). Between 1974 and 2000, nearly 2,500 license-built Pipers were produced by Embraer.

Acquisition of Aerotec

Aerotec S/A Indústria Aeronáutica was a design and manufacturing company founded in São José dos Campos in 1962 under the auspices of the Brazilian General Command for Aerospace Technology. Beginning in the late 1960s, the firm manufactured a two-seat trainer for the Brazilian Air Force, the Aerotec Uirapuru. A small number were also built for the civilian market, and others were exported to other Latin American countries.

By 1980, Aerotec's main business was producing components for Embraer. However, around this time, the Brazilian Air Force became interested in an upgraded version of the Uirapuru. A prototype, designated Uirapuru II, was built; but, by the time it flew, the Air Force no longer required it. A small number were built for export. In 1987, the firm was sold to Embraer.

Privatization

Born from a Brazilian government plan and having been state-run, Embraer eventually started a privatisation process in 1992 alongside other state-run companies, such as Telebrás and Vale. Privatisation was a key policy of the economically liberal government of Fernando Collor, elected in the 1989 presidential election.

Embraer was sold to private investors on December 7, 1994, which helped it avoid a looming bankruptcy. The Brazilian government retained interest through possession of golden shares, which allow it veto power. Embraer continued to win government contracts throughout the 2000s and 2010s.

Initial public offerings

In 2000, Embraer made simultaneous initial public offerings on the NYSE and BM&F Bovespa stock exchanges. As of 2008 its NYSE-traded shares were American depositary receipts representing four BM&F Bovespa shares and it was partially owned by the Bozano Group (11.10%), Previ (16.40%), Sistel (7.40%), Dassault Aviation (2.1%), EADS (2.1%), Thales (2.1%), Safran (1.1%), and the government of Brazil (0.3% and golden share), the remainder being publicly traded.

As of December 31, 2014 the shareholders with more than 5% of the company's capital were:

OppenheimerFunds, 12.29%

Caixa de Previdência dos Funcionários do Banco do Brasil, 6.71%

Baillie Gifford, 6.46%

BNDESPAR, 5.31%.

Product line expansion: military, regional and executive

In the mid-1990s, the company pursued a product line focused on small commercial airplanes over the military aircraft that had previously made up the majority of its manufacturing. It soon expanded to the production of larger regional airliners in the 70–110 seat range, and smaller business jets.

By May 2019, Embraer considered developing a new family of turboprop regional airliners in the 50–70 seat range, complementing the E-Jet E2, so as to free engineering resources. It would compete against older ATR and Dash 8 designs for 1.5 to 2 h flights over 500–700 nmi (930–1,300 km).