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Embraer remains bullish on China market
September 8th 2017
China will need 1,070 regional jets with 70 to 130 seats over the next 20 years, making it the third-largest regional aviation market after the U.S. and Europe, Brazilian manufacturer, Embraer, predicted at the fourth China Regional Aviation Forum in Yinchuan. Read More »
From 2017 to 2036, demand for regional jets in China will account for 17% of China’s total aircraft demand, Embraer forecast. In 2016, there were 137 regional jets in active passenger service in China, it said.Embraer holds approximately 80% of the regional jet market on the Mainland and has received firm orders for 221 aircraft from China.
The OEM’s China customers include China Southern Airlines (20 E190s), Tianjin Airlines (52 E190/195s), Hebei Airlines (6 E190s) and Colorful Guizhou Airlines (6 E190s).
China Southern is reportedly considering replacement of its E190s with larger Bombardier CSeries aircraft. Such an order would be a breakthrough for Bombardier, which has won no deals to supply the CSeries to Mainland carriers, despite having contracted AVIC to build much of the airframe.
"In the next decade, the number of middle-class families in China is expected to grow to 300 million from 100 million. Most of them will come from second and third tier cities. The urbanization in smaller Chinese cities is expected to drive their demand for aviation transportation," said Embraer COO, Arjan Meijer. He noted that China’s high-speed railway network would soon connect approximately 80% of the major cities, but regional flights would help fill the gaps.
Beijing has delivered favourable policies to boost the development of regional aviation. During the 13th Five-Year Plan through to 2020, China will build 43 new regional airports. In 2016, the government provided 1.02 billion yuan (US$155 million) in subsidies to the regional aviation sector.
