February 12, 2014
Embraer projects 1,500 new deliveries of 70 to 130-seat jets in Asia Pacific over next 20 years
Embraer Commercial Aviation forecasts that airlines in Asia Pacific, including China, will take delivery of 1,500 new jets in the 70 to 130-seat segment over the next 20 years (valued at US$70bn at list prices), representing nearly 20% of the worldwide demand for the segment in the period. Of the region’s new deliveries, 65% are expected to support market growth while 35% will replace ageing aircraft being retired. The Asia Pacific market will become more affluent, competitive and liberal, further stimulating airlines to seek system efficiencies, brand differentiation and improved service levels. In this context, the 70 to 130-seat jet segment will play a key role to support the intra-regional development in Asia Pacific. “Passenger traffic in the Asia Pacific region is mostly composed by secondary markets with low and medium demand densities of up to 300 passengers daily each way. Some 60% of those markets are not served nonstop, and around half of all markets served do not allow for same day return travel,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. “Embraer E-Jets provide the capability to develop a better traffic feed system and greater network connectivity, as well as improving the quality of services on existing markets where there is not enough demand to support larger single aisle aircraft operations.” The region’s economic growth has altered its socio-demographic context, with an increased urban middle class with more discretionary spending and therefore higher propensity to air travel. A positive economic outlook and intra-regional liberalization will drive air transport demand in Asia Pacific to increase 6% annually by 2032, led mainly by China and India. The region will become the world’s largest market accounting for 34% of total revenue passenger kilometers.