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Tuesday, Sept 26, 2017


Embraer Projects Market Demand for 6,400 New Jet Deliveries in the 70-130+ Seat Segment Over the Next 20 Years

Paris, France, June 20th, 2017 – According to the latest Market Outlook, Embraer projects a steady market demand for 6,400 new jets in the 70-130+ seat capacity category (2,280 units in the 70-90 seat segment and 4,120 units in the 90-130+ seat segment), worth USD 300 billion, by 2036.

The 70-130+ seat jet world fleet-in-service will increase from 2,700 aircraft in 2016 to 6,710 by 2036, the fastest growing segment among all aircraft seat capacities. Market growth will drive 63% of total demand and the remaining 37% will be delivered to replace ageing aircraft.


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70-130+ Seat Jet Deliveries by Region North America:

  • 2,020 (deliveries) 32% (share)
  • Asia Pacific: 1,710 (deliveries) 27% (share)
  • Europe: 1,150 (deliveries) 18% (share)
  • Latin America: 690 (deliveries) 11% (share)
  • CIS: 390 (deliveries) 6% (share)
  • Africa: 220 (deliveries) 3% (share)
  • Middle East: 220 (deliveries) 3% (share)
  • World (2017-2036): 6,400 (deliveries)

Whilst region-specific outlooks vary considerably, the underlying drivers to sustain the projected market demand for jets in the 70-130+ seat capacity category remain intact, from feeding complex bank structures at major hubs to pioneering new markets and complement narrow-body aircraft operation.

Fleet optimization is critical in the vicissitudes of business cycles, and a rationalized fleet does not necessarily signify an optimized one. Right-sized aircraft call for a new smarter approach. Greater control in matching aircraft capacity to market demand prevents the erosion of unit revenues and provides competitive cost structure.

The E195-E2, for example, will provide an attractive proposition with much lower trip costs and comparable seat-mile costs to than its large narrow-body counterparts, while combining growth and higher returns with the opportunity to increase unit revenue with a right-sized aircraft.

“The airline industry is notoriously known for its boom and bust cycles. Better seat inventory control allows a continuous search for higher profits and efficiency. The ability to shift back towards revenue unit growth, instead of aggressive capacity expansion, is crucial”, said John Slattery, President & CEO, Embraer Commercial Aviation.

Jets in the 70-130+ seat capacity category are one of the main pillars of business sustainability. As the most efficient single-aisle family of aircraft, the E-Jets E2 is perfectly positioned to keep Embraer as the market leader in the segment and maximize profitability for both airlines and leasing companies.

Source : Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ) - view original press release

Published on ASDNews: Jun 20, 2017

 

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