Kristine Liwag: Hey, good morning, Francisco, Antonio and Gui. Sorry about that. Maybe Francisco, on competitive dynamics, Airbus continues to lose money on the A220, and they are aspirationally breakeven at 160 per year. But they’re continuing to see pressure from labor costs in Canada and as well as their supply chain. Can you talk about what this means for the pricing environment for the E2? And how has the pricing environment for the E2 changed over the past few years since COVID. Are you seeing any improvement?
Francisco Gomes Neto: Well, Kristine, thanks for the question. Good question, by the way. Well, when we have a free competition in the market, the result is pressure on the price, which benefits the customs, right? In case of Embraer, I mean, even with the tough competition, we have been profitable in our Commercial Aviation. In the past year — the past years, in fact two years, we’ve been profitable the commercial without services, and we don’t sell our aircraft below cost. So what we have done, we have tried to offer competitive prices to our customers to show the value of our products that we — our product we believe that we do have the most efficient aircraft in that category. And we continue to work on reducing our internal costs with Kaizen programs, with cost reduction initiatives involving many engineers in the organization.
So again, we have prepared ourselves for this competition, but without selling products below our cost. So again, we expect again this year to be profitable in Commercial Aviation without service. If we add service, we even improve the profit in our commission business.
Kristine Liwag: Thanks, Francisco. And if I could tack another one, and following-up on Myles question, there is a shortage of aircraft globally, and Boeing continues to struggle with production, and Airbus can’t meet all the demand out there either. Now, the E2 is a very attractive aircraft. I actually flew it recently from Paris to Zurich. I mean, what prevents customers from committing to more firm orders? I mean, that said, right, you are sold out through the end of 2026, but what’s preventing them from committing for the slots in 2027 and beyond?
Francisco Gomes Neto: Another good question, Kristine. I think there was a wave of customers buying bigger aircraft. But now, I mean, I think we see more and more opportunities for this we call small narrow-body. I mean, our E2 can fly up to 6 hours, and it’s very efficient, very quiet, and it’s perfect for, if the airline wants to offer a higher frequency of flights to the passengers also to explore routes. I mean, until the demand is big enough to fill a big narrow-body buy, I think they too is a perfect solution. And we see more and more customers now. I mean, we see the interest growing more and more in that segment of small narrow-body that will for sure benefit our interest.
Operator: Thank you very much. The next question comes from Noah Poponak with Goldman Sachs. Please go ahead.
Noah Poponak: What unit growth are you planning for based on the demand backlog, how full the skyline is in the medium-term in Commercial.
Francisco Gomes Neto: Could you please repeat the questions? I have difficulty to understand here.
Noah Poponak: Yes. Can you hear me okay?
Francisco Gomes Neto: Yes, please.
Noah Poponak: Yes. I’m wondering from the starting point of 2024, given you have to set the system, the production system in motion pretty far in advance, and delivery — production deliveries are still pretty far below pre-pandemic in Commercial. I’m wondering how you’re triangulating all of the inputs you have to decide where you should take production over the next two or three years in Commercial.
Francisco Gomes Neto: Okay. Now I got your question. Thank you. Well, this year we are planning in Commercial Aviation deliveries between 72 and 80 aircrafts. And we — as I said before, we are working in a lot of sales campaigns for the future. Next year, we expect to grow the production of commercial jets which should be very close back to the three digits production in the, I mean in the commercial jets. And we expect to keep that level of production with small growth in the years ahead. So again, we believe that next year in the 2025/2026, will be back to the production levels, pre-pandemic levels, which will bring our Commercial Aviation to even better profitability performance. So again, we are very optimistic with the production growth in the levers of Commercial Aviation as well.
Noah Poponak: Okay. Great. Appreciate that detail. And then at Executives, obviously the deliveries are up a lot year-over-year in the quarter, obviously, it’s off a low base. But have you had resolution of supply chain issues in Executives such that the year can be more level loaded as you go through the year? Or is there an implication that there’s upside to the full year range?
Francisco Gomes Neto: No, we had some difficults to last year. I mean, external with suppliers, but internal as well, because we were ramping up a lot the production. But I know since then we have approved a lot of investments in our plants to increase the production capacity either in Brazil, in the U.S. So with that, we expect — we are planning on growth this year and an even more important growth in 2025 in years ahead. Because of this I mean investments we are implementing this year to help us to increase production from 2025 onwards in Executive jets.
Operator: Thank you all very much. This concludes the question-and-answer session for equity research analysts and investors. Now we will start a Q&A session dedicated to the press. First, we will answer questions in English, and then we will answer questions in Portuguese. We will also answer questions sent via the platform chat. [Operator Instructions]. Our first question is from the chat is from Richard Schuurman, a freelance aviation reporter. Hello Francisco, obviously you were very happy with the large order from American for 90 E175s, but how do you rate the chances of Embraer to win E2 orders from U.S. customers? They seem to favor larger aircraft.
Francisco Gomes Neto: Thanks for the questions. Yes, we are extremely happy with the order of American Airlines last March. It was very important order for us that shows that our E175 still have many opportunities, especially in the U.S. market. The E2s more recently we have seen the E2s flying over U.S. with the Porter Airlines. Porter is flying out to New York, to Florida, to California with the E2s. And we — yes, we are in conversation with potential customers in the U.S. I mean, showing how good the aircraft is and how the aircraft can help them to fill the gap between the regional jets and the big narrow-bodies. So again, we see opportunities, not only the U.S., but in many other regions in the world for the E2s.
Operator: Thank you. The next question comes from the chat from Richard Schuurman, the same questionnaire. Do you have updates on the initial agreement with Richard Schuurman for the conversion of E1s jets in China as announced at the Paris Air Show?