Embraer has announced a further four-year pause in the development of its E175-E2 jet, citing issues related to scope clauses in the United States. The decision was disclosed in an update to investors, highlighting that the E175- E2 remains the only model of Embraer's E2 series not yet in production.
The company said its board approved the extended development pause, marking another delay for the program. Scope clauses, which are contractual agreements between airlines and pilot unions, limit the size and number of aircraft that regional affiliates can operate. These clauses have been a significant hurdle for Embraer as it seeks to introduce the E175-E2 into the U.S. market.
Embraer's decision comes amid ongoing challenges faced by aircraft manufacturers in adapting to regulatory and market constraints. The scope clause issue has particularly impacted Embraer because it affects demand from major U.S. carriers who rely on regional jets.