Embraer's Hopes High for Chinese Civil Aviation
Nov. 13, 2012
Brazilian aircraft manufacturer Embraer is expecting rapid growth in China, according to its recently released market outlook for the next 20 years.
Over the next two decades, Embraer predicts that the Chinese regional aviation market will account for 15 percent of the world demand for aircraft with seating capacities between 61 and 120, according to its report.
This will create a healthy demand for Embraer, one of Brazil's top exporters and the world's leading manufacturer of commercial jets with seating capacities under 120.
Based on comprehensive analysis, the company found that the versatility of 61-to-120-seat jets has enabled them to seize a greater market share by replacing older jets, optimizing fleet structure and helping airlines explore new markets at a lower risk.
Embraer forecasts that there will be 1,005 new deliveries of 61-to-120-seat jets from now until 2031. Of them, 455 will be orders for 61-to-90-seat jets and 550 for 91-to-120-seat jets.
"In the 12 years since its first delivery to the Chinese market, Embraer has built a solid leadership position in the country's regional aviation market, claiming 77 percent of the market with almost 120 commercial jets delivered to date. Looking forward, we have full confidence in the great potential of the Chinese market.
"Embraer will strive to maintain its leadership position by upholding its commitments to each of our valued customers, and will be prepared to support the growth of air transportation in China," said Guan Dongyuan, president of Embraer China.
According to the report, China's vibrant economy and its growing middle class will foster escalating demand for better connectivity in second-tier cities.
The country's regional aviation market will continue the same sound developmental trajectory as it has experienced in the past decade.
The market outlook also notes that central and local government aviation policies are acting as catalysts to regional aviation expansion in China, and airlines are optimizing their fleet capacities as a means to stay competitive.
The report includes an in-depth case study illustrating how Embraer's commercial jets are spurring the development of the local air transportation industry.