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Wed, Feb 14, 2018

Embraer Releases Asia-Pacific Market Forecast For Regional Airliners

Projects Demand Of 3,010 New Deliveries In The Segment

Embraer Commercial Aviation has released its market forecast for the Asia Pacific region. The Company estimates airlines will take delivery of 3,010 new aircraft in the segment up to 150-seats over the next 20 years, representing 29% of the worldwide demand for the segment, in the period. The total demand for the segment is for 10,550 new aircraft over the next 20 years.

Asia Pacific has experienced rapid social and economic development in recent decades. The region’s above-average economic expansion, with a projected annual GDP growth rate of 3.9% for the next 20 years, combined with increasing urbanization and shifting demographic patterns, will result in higher household incomes and increased discretionary spending, including air travel.

“The ongoing over-capacity and intense competition in the region has prevented airlines from delivering higher profits. In this regard, the E-Jets E2 can help airlines to open new markets at the lowest possible risk, complement larger fleet types to maximize profit, and achieve sustainable growth with higher profitability,” said César Pereira, Vice-President for Asia-Pacific, Embraer Commercial Aviation (pictured).

“We continue to identify to airlines opportunities in markets that are currently underserved or not served at all. With the E2’s, we can offer great operational flexibility, broaden the network reach to 2nd and 3rd tier cities, adding frequency to build competitive advantage and access to more airports without any limitations,” explains Pereira.

The Chinese start-up airlines will grow from small and mid-sized cities with subsidies to propel the development of the regional aviation. The region needs a shift in focus from competing to creating new market space and seeking out untapped opportunities.

One great opportunity in the region for the E-Jets is the aging incumbent fleet, where there are more than 250 jets in the 50 to 150-seat category over 10 years of age, which will become targets for replacement in the near future.

(Image provided with Embraer news release)

FMI: www.embraer.com

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