MRO & Manufacturing
Embraer Launches Smart Planning AI to Improve Supply Chain Efficiency
Embraer and Aquarela Analytics developed Smart Planning AI to optimize inventory and improve operational efficiency in aircraft production.

This article is based on an official press release from Embraer.
Embraer Deploys “Smart Planning” AI to Fortify Supply Chain Resilience
Embraer has officially launched “Smart Planning,” a proprietary Artificial Intelligence (AI) solution designed to optimize inventory management and enhance operational efficiency across its aircraft manufacturing supply chain. Developed in partnership with Brazilian AI firm Aquarela Analytics, the new tool leverages predictive modeling to anticipate material shortages and surpluses, aiming to insulate the manufacturer from the supply chain volatility that has challenged the aerospace sector in recent years.
According to the company’s announcement, the system is the result of a 10-month development cycle that analyzed over 2 terabytes of historical and operational data. By integrating this vast dataset, Embraer aims to reduce the risk of production stoppages and minimize financial waste associated with excess stock.
The Mechanics of Smart Planning
The “Smart Planning” tool functions as a data-driven platform that assists planning teams by forecasting inventory requirements based on production schedules and historical consumption patterns. Embraer stated that the system provides interactive dashboards for real-time visualization of stock levels, allowing for faster decision-making.
The development process combined Embraer’s internal Agile methodology with Aquarela’s proprietary Data Culture Methodology (DCM). This hybrid approach was designed to assess data maturity and ensure the AI models were built on a scalable foundation. Dimas Tomelin, Vice President of Strategy, Digital and Innovation at Embraer, emphasized the tool’s role in enhancing predictability.
“Smart Planning is the most up-to-date data tool developed and integrated to make Embraer’s processes more efficient… providing greater predictability in case of material shortages or surpluses.”
Dimas Tomelin, VP of Strategy, Digital and Innovation at Embraer
Aquarela Analytics, a Florianópolis-based company specializing in Industry 4.0 solutions, brought over 12 years of market experience to the project. Marcos Santos, CEO of Aquarela, noted the complexity of the initiative.
“It was a challenging project where, at each stage, we delved deeper and expanded the scope as the complexity and results were measured.”
Marcos Santos, CEO of Aquarela Analytics
Strategic Supply Chain Implications
The introduction of Smart Planning represents a significant step in Embraer’s digital transformation strategy. By predicting shortages before they impact the assembly line, the manufacturer intends to maintain consistent production rates for its E-Jets and Praetor executive jets. Furthermore, the system is expected to improve cost efficiency by reducing “safety stock”, excess inventory held as a buffer, thereby releasing working capital and lowering storage costs.
The partnership also highlights Embraer’s commitment to the local technology ecosystem. Aquarela Analytics, an investee of Auren Energia and a recipient of the National Innovation Award from the National Confederation of Industry (CNI), represents the growing capability of Brazilian tech firms to support complex industrial operations.
AirPro News Analysis
While major aerospace competitors have also invested heavily in AI, Embraer’s approach appears distinct in its targeted scope. Industry data suggests that while Airbus utilizes platforms like “Atlas AI” and “Skywise” for broad global demand sensing, and Boeing leverages partnerships for procurement cost control, Embraer’s “Smart Planning” is a highly specific intervention.
We observe that rather than building a monolithic platform, Embraer has deployed an agile, problem-specific tool to address the immediate pain point of production inventory fluidity. This strategy aligns with the company’s need to remain nimble against larger competitors, ensuring that its manufacturing lines remain resilient despite global supply constraints.
Sources
Photo Credit: Embraer
MRO & Manufacturing
GE90 Parts Shortage and Aftermarket Consolidation August 2026
August 2026 data shows tightening GE90 engine-control supply and rapid aftermarket consolidation ahead of heavy maintenance season.

Aviation marketplace data for August 2026 indicates a tightening global supply of GE Aerospace GE90 engine-control components for the Boeing 777, contrasting with sustained high demand for routine Airbus A320-family parts. Published on September 4, 2026, by aviation procurement platform Locatory.com, the market overview highlights specific Supply-Chain constraints for widebody engine components ahead of the upcoming heavy maintenance season.
Diverging aftermarket conditions
The August 2026 data reveals two distinct aftermarket conditions developing simultaneously. On the demand side, the marketplace recorded high activity for standard hardware and Airbus A320-family landing-gear components. Locatory.com described this activity as procurement teams chasing the routine material required to keep high-utilization narrowbody fleets operational.
Conversely, the supply side showed a concentrated scarcity signal. The availability of engine-control parts for the GE90 tightened significantly. This specific shortage points to localized pressure points in the widebody maintenance sector, even as narrowbody operators focus on securing high-volume consumables and standard hardware.
Industry consolidation and capacity constraints
The tightening supply of specific engine components occurs against a backdrop of rapid consolidation in the aviation aftermarket. Between early July and late August 2026, at least six major transactions were executed, shifting aftermarket ownership, repair access, and engine support capacity into fewer, more integrated entities.
This consolidation trend spans multiple sectors of the industry. Aircraft lessors are acquiring service businesses, while Maintenance, Repair, and Overhaul (MRO) providers are securing long-term repair capacity. Simultaneously, engine Original Equipment Manufacturers (OEMs) are expanding their internal shop networks. In response to tight shop slots and constrained engine availability, Airlines are increasingly bringing maintenance operations in-house to ensure fleet reliability.
IATA calls for supply chain transparency
The International Air Transport Association (IATA) addressed these structural challenges in its 2026 Annual Review. The organization called for greater supply-chain transparency and increased competition within the MRO sector. IATA also advocated for wider access to alternative parts and repair venues, alongside improved information regarding Used Serviceable Material (USM), to assist airlines in navigating shortages and optimizing sourcing decisions.
AirPro News analysis
The localized scarcity of GE90 engine controls ahead of the heavy maintenance season illustrates the vulnerability of widebody operators to specific component bottlenecks. While narrowbody demand remains predictable and volume-driven, the widebody sector is experiencing acute pressure points. We view the recent wave of aftermarket consolidation as a direct response to these supply chain realities. As MRO capacity and USM inventories concentrate within fewer organizations, airlines without vertically integrated maintenance capabilities or long-term service agreements will likely face higher costs and longer turnaround times. The IATA recommendations highlight a growing industry consensus that the current aftermarket structure requires greater flexibility to support global fleet operations.
Sources: Locatory
Photo Credit: Locatory
MRO & Manufacturing
Avianca Secures $300M ABGF Financing for CFM56 Engine MRO
Avianca secured up to $300M in Brazilian state-backed financing for CFM56 engine MRO at GE Aerospace Celma facilities in Brazil.

Avianca has secured up to $300 million in financing backed by the Brazilian Agency for the Management of Guarantee Funds and Guarantees (ABGF) to fund MRO services for its CFM56 aircraft engines at GE Aerospace facilities in Brazil.
Announced in a press release on September 8, 2026, the transaction represents the first time a non-Brazilian airline has utilized the ABGF framework to finance aircraft engine maintenance. Citibank arranged the financing structure, which relies on Export Credit Insurance (SCE) provided by the Brazilian government to support the export of high-value services.
Abra Group leverages regional MRO capabilities
Avianca, a member of the Abra Group alongside Gol Linhas Aéreas and Wamos Air, will direct the funds toward engine shop visits at GE Aerospace’s Celma network. The financing provides the carrier with dedicated capital for heavy engine maintenance, a major cost center for commercial airlines operating mature narrowbody fleets.
“Maintaining a reliable and efficient fleet is fundamental to delivering the experience our customers deserve. According to Abra Group’s approach to fleet synergies and growth, this agreement provides additional flexibility to execute our maintenance plans while continuing to invest in the resilience, reliability, and performance of our operation,” said Felipe Gutierrez, Chief Operating Officer of Avianca.
The Avianca agreement follows a similar move by its sister airline. On August 13, 2026, Gol Linhas Aéreas secured a $160 million financing line under an identical ABGF guarantee structure for engine MRO services at the same GE Celma facilities.
Bolstering Brazil’s aerospace export sector
The GE Aerospace Celma operation spans sites in Petrópolis, Rio de Janeiro, and Três Rios. According to the company, the Brazilian network conducts nearly 25 percent of the manufacturer’s internal engine maintenance work globally.
MaÃra Madrid, President of ABGF, stated that supporting high-technology services performed in Brazil generates value, skilled employment, and foreign exchange earnings. She noted that the transaction helps strengthen the international presence of Brazilian companies and expands the country’s participation in global aerospace value chains.
“This innovative financing solution, a first-of-its-kind with ABGF, provides Avianca with access to world-class maintenance and overhaul services at our Celma facility in Brazil. We look forward to building on this initiative to deliver even greater value for our customers across the region,” said Mahendra Nair, Group VP of Global Commercial Sales at GE Aerospace.
The Avianca MRO financing was announced on a busy day for GE Aerospace. Separately on September 8, 2026, the engine manufacturer agreed to acquire precision castings supplier Consolidated Precision Products (CPP) for $11.75 billion, a move designed to expand its control over specialized castings for commercial aerospace and defense applications.
AirPro News analysis
We view the consecutive ABGF-backed financing deals by Abra Group airlines as a calculated strategy to optimize heavy maintenance costs across the holding company’s fleet. By tapping into Brazilian state-supported export credit, Avianca and Gol can secure favorable financing terms for capital-intensive CFM56 shop visits without straining their primary balance sheets. This arrangement also cements GE Aerospace’s Celma facility as a critical node in the Latin American aviation supply chain, aligning operator needs with Brazil’s strategic push to export high-value aerospace services.
Sources: Avianca via PR Newswire
Photo Credit: Avianca
MRO & Manufacturing
GE Aerospace Acquires CPP for $11.75 Billion
GE Aerospace agrees to buy Consolidated Precision Products for $11.75B to secure engine casting supply and expand production capacity.

GE Aerospace has signed an agreement to acquire Consolidated Precision Products (CPP) for $11.75 billion in a move designed to vertically integrate a critical supplier and alleviate persistent supply chain bottlenecks in engine castings.
Announced on September 08, 2026, the transaction will see GE Aerospace finance the purchase with $7 billion in cash and the remainder in new debt. The acquisitions of the Cleveland-based manufacturer, backed by private equity firms Warburg Pincus and Berkshire Partners, is expected to close in the second half of 2027 subject to regulatory approvals.
Securing the aerospace supply chain
The aerospace and defense sector faces severe supply chain constraints. Castings and forgings have emerged as a primary chokepoint, limiting the production of commercial engines, military equipment, and aftermarket spare parts. According to reporting by Aviation Week, engine manufacturers have struggled to ramp up production to meet surging demand across these sectors.
CPP manufactures highly engineered castings that support major GE Aerospace engine programs, including the LEAP, GEnx, T700, F110, and F404. GE Aerospace has been a customer of CPP for more than 15 years.
In a press release issued on September 08, 2026, GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. stated that investing in mission-critical casting capacity is necessary to support simultaneous demand across commercial, aftermarket, and defense markets.
“By combining GE Aerospace’s technology capabilities and FLIGHT DECK with CPP’s manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms,” Culp said.
Financial structure and operational integration
The $11.75 billion purchase price represents a valuation multiple of approximately 18 times CPP’s expected 2027 EBITDA, factoring in expected net synergies. According to a GE Aerospace 8-K filing cited by Stock Titan, the company anticipates approximately $200 million in net synergies from the acquisition. Without these synergies, the valuation multiple stands at approximately 26 times EBITDA.
CPP operates more than 20 facilities worldwide and employs approximately 6,600 people. GE Aerospace plans to implement its proprietary lean operating model, known as FLIGHT DECK, across CPP’s manufacturing footprint. The goal is to drive process and quality improvements to support higher output.
James Stewart, CEO of CPP, noted the long-standing relationship between the two companies. Speaking to Aviation Week, Stewart said the manufacturer is excited to strengthen the partnerships and that GE Aerospace has shown strong enthusiasm for supporting CPP’s continued growth.
AirPro News analysis
We view this $11.75 billion acquisition as a definitive shift in how tier-one aerospace manufacturers manage supply chain risk. For years, the industry relied on a distributed network of specialized suppliers. However, the post-pandemic reality of constrained castings and forgings capacity has forced original equipment manufacturers (OEMs) to take direct control of their most critical inputs.
Airlines are battling engine-wear issues that reduce aircraft availability between scheduled shop visits. As noted by The Wall Street Journal, CPP produces advanced airfoil technology that helps keep engine surfaces cooler, directly improving efficiency and durability. By bringing CPP in-house, GE Aerospace secures its own production lines while gaining tighter control over the development of next-generation airfoil technologies required for hotter, more efficient future engine designs.
Sources: GE Aerospace
Photo Credit: GE Aerospace
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