Embraer Commercial Aviation published its market forecast for the Asia-Pacific region at the Singapore Airshow. The company estimates airlines will take delivery of 3,010 new aircraft with up to 150 seats over the next 20 years, representing 29% of the worldwide demand for the segment in that period. The global segment is expected to amount to 10,550 new aircraft over the next 20 years.
The company believes there is a huge opportunity in the region for its E-Jets – Embraer’s range of narrow-body, medium-range twin-engine jet airliners. In APAC, there are more than 250 planes in the 50 to 150-seat category that are more than 10 years old and will soon need to be replaced.
Also, the region’s economy is expected to grow faster than the global average, with its annual gross domestic product rising by 3.9% for the next 20 years. This, combined with increasing urbanisation and shifting demographic patterns, will result in higher household incomes and greater discretionary spending, including air travel.
Low-risk entry to new markets
“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 maximise profit, and achieve sustainable growth with higher profitability,” said César Pereira, Vice-President for Asia-Pacific, Embraer Commercial Aviation.
“We continue to identify to airline opportunities in markets that are underserved or not served at all. With the E2s, we can offer great operational flexibility, broaden the network reach to second and third tier cities, adding frequency to build competitive advantage and access to more airports without any limitations,” added Pereira.
Embraer predicts that Chinese start-up airlines will grow from small- and mid-sized cities through subsidies to develop regional aviation, reflecting the shift in focus the region needs – from competing to creating new market spaces and finding untapped opportunities.