News
Asia-Pacific biggest future market for Embraer aircraft
December 4th 2020
Embraer said this week the Asia-Pacific would require 1,710 aircraft in the less-than-150 seats category in the next decade as airlines align their fleets to capture opportunities. Read More » The regional forecast of 1,220 jet aircraft up to 150 seats and 490 turboprops was outlined in the Embraer Market Outlook 2020.
Embraer Commercial Aviation CEO, Arjan Meijer, said the post COVID-19 market will shrink for years to come as airlines adjusted fleets to match demand. Aircraft with up to 150 seats will have an important role to play in an "emerging right-sizing cycle", the Embraer forecast said.
"Capacity plans of the past will no longer fit," Meijer said. “In the past few months, the up to 150-seat aircraft category played a key role in the recovery of the airline industry. Around the world, the segment proved its versatility in maintaining network connectivity and ramping up schedules."
The Embraer Market Outlook 2020 predicts cyclical and structural challenges for the Asia- Pacific, including supply chain realignment from the protracted trade dispute between China and the U.S. and the disruption to labour and air freight capacity during the COVID-19 pandemic.
Mainland airlines are likely to need more jets in the up-to-150-seats category as the country "transitioned to greater connectivity and a more efficient air transport system" to offer high frequency, economical flights, Embraer said. In 2020, the category was 15% of China's commercial airline fleet. About 79% of the combined China fleet was in the 150-200-seat category.
"Aircraft currently serving medium and small markets in China are considerably bigger than those serving similar markets in the U.S. where capacity is proportional to demand and connectivity is higher," the report said.
In ASEAN countries, congested major airports meant there was a "latent need" for secondary airports to develop tourism and the economy. Turboprops and smaller narrow-bodies were best suited to build connectivity at these ports. Global demand will be 5,500 aircraft up to 150 seats: 4,420 jets and 1,080 turboprops.
