Embraer expects Asia Pacific aircraft orders to skyrocket

Singapore – Embraer Commercial Aviation forecasts that airlines in Asia Pacific, including China, will take delivery of 1,500 new jets in the 70-130 seat segment over the next 20 years, representing nearly 20% of the worldwide demand for the segment in the period.

At today’s list prices, that buying surge would cost $70 billion.

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.

"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," says 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."

The region's economic growth and increased urban middle class with more discretionary spending have a 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.

The E-Jets family has logged more than 1,400 orders and over 1,000 deliveries to date and are in service with some 65 customers from 45 countries.

Source: Embraer