Executives at the Brazilian aircraft manufacturer, which owns 65% of OGMA, anticipate the affiliate’s revenue will triple in short order thanks to the soon-to-start maintenance work.
OGMA secured its place as an authorised GTF service centre in November 2020 and is on track to start maintaining PW1100Gs, which power Airbus A320neo-family jets, before April 2024, Embraer chief executive Francisco Gomes Neto says on 6 November.
OGMA is on track to begin maintaining PW1100Gs, which power Airbus A320neo-family jets, before April 2024
Based in Alverca, Portugal, OGMA will also maintain PW1900Gs, which power Embraer’s E-Jets E2, and has expressed interest in servicing another GTF model, the A220’s PW1500Gs.
“That is a very important contract for OGMA that will help OGMA to triple its revenues in the next two to three years,” Gomes Neto says, speaking during Embraer’s third-quarter earnings call.
OGMA in 2022 generated revenue of $217 million and lost $19.5 million, Embraer financial documents show.
“By 2025, we believe OGMA will be closer to $500 million in terms of revenue” and will grow further from there, says Gomes Neto.
Embraer chief financial officer Antonio Carlos Garcia adds that OGMA will realise “a bit of a positive collateral effect” from P&W’s recent recall of more than 1,000 in-service PW1100Gs due to possible defective disks. Garcia is not more specific.
P&W says the issue results from manufacturing problems involving powdered metal used to make the disks. P&W has been scrambling to secure maintenance slots for the powerplants, which require early inspections or replacement disks.
Securing the GTF work marks a shift in Embraer’s aftermarket strategy toward what its executives have called “agnostic” work, meaning work not directly associated with Embraer aircraft.
Embraer’s entire services division brought in revenue of $1.3 billion in 2022.
The Portuguese state owns the other 35% of OGMA, according to Embraer.