Page 25 - AAA JULY / SEPTEMBER 2023 Latest Magazine | GBP

Growth Prospects

Regional jet manufacturers are looking at a

period of growth as air travel grows

By Atul Chandra

he market for regional jets is growing with Brazilian airframer, Embraer, which released its 20-year
increased demand for air travel with world Market Outlook for commercial aircraft deliveries
passenger traffic, measured in revenue pas- through 2042, at the Paris Air Show in June, has fore-
T senger kilometers, expected to return to 2019 cast that 11,000 new jets and turboprops valued at USD
levels by 2024. The growing demand for regional jets, 650 billion, will be needed in this period. According to
not only allows airlines to offer efficient connectivity to Embraer, the need for flexibility, complementing nar-
passengers but delivers a competitive economic advan- row-body aircraft, is driving demand for aircraft in the
tage compared to using larger single-aisle jetliners. up-to-150-seat segment. In his Market Outlook introduc-
tory message, Embraer Commercial Aviation President
According to a market report released in July by Allied and CEO, Arjan Meijer, highlighted the importance of
Market Research, the global regional jet market which aircraft in the up-to-150 seat category to maintain air-
was valued at US$5.7 billion in 2022, is projected to line network connectivity.
reach US$10.6 billion by 2032, growing at a com-
pounded annual growth rate (CAGR) of 6.4 percent Despite the growing market, entry into the regional jet
from 2023 to 2032. As per the report, the, 80-125 seat segment for jetliners in the up-to-150-seat segment
regional jet segment is projected to manifest the high- is formidable. In February this year, Mitsubishi Heavy
est CAGR of 8.3 percent from 2023 to 2032. Industries (MHI) announced the discontinuation of

ASIAN AIRLINES & AEROSPACE JULY - SEPTEMBER 2023 | 25