Embraer forecasts a $10bn jet stream
NOV 9, 2015: According to the global Embraer Market Outlook for the 70 to 130-seat capacity segment for the next 20 years, released by the Company in June, the market will demand 6,350 new jets in this category, which is valued at 300 billion over that period. Embraer projects market deliveries of 2,250 units in the 70 to 90-seat segment and 4,100 units in the 90 to 130-seat segment.
The Middle East will play an important role in this 70 to 130-seat segment. According to Embraer’s forecast, released during the Dubai Airshow, the market in the region will demand delivery of 220 new jets in the 70 to 130-seat segment through 2034 (valued at $10 billion at list prices).
The Middle East is the fastest growing region in the world, with double-digit growth over the last 10 years. Most of its growth comes from long-haul flights. However, the regional segment has significant importance to the region, feeding the hubs and accessing smaller markets. In 2015, 41 percent of the intra-Middle East flights departed with less than 120 passengers. These markets cannot be efficiently served by bigger jets, and are optimized for the E-Jets family, which have been successful at capturing 83 percent market share in the 70 to 130-seat segment.
In 2015, Embraer is celebrating 10 years of experience operating in the Middle East. This is a key milestone, not only for the E-Jets’ success in the region, but also for overcoming the great challenge of supporting the fleet in such a harsh environment.
“Today, we are the only manufacturer of under-130-seat aircraft with such an experience in the region. Understanding the operational challenges and having the experience to overcome them takes a long time and demands a lot of resources,” said Paulo Cesar Silva, president & CEO, Embraer Commercial Aviation. “Embraer has succeeded over these 10 years, but has also learned a great deal about the special characteristics of operations in this region. All this know-how has been very beneficial in designing the future generation of E-Jets, the E2s, as well as to enhance our services.”