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Embraer Foresees Demand for 10,550 New Aircraft in 20 Years

: Jul 17, 2018 - : 2:27 pm

Brazilian aircraft-maker Embraer has predicted global demand for new aircraft to grow as much as 10,550 with a capacity of 150 seats, worth USD600 billion, in the next two decades.

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The in-service fleet is set to rise to 16,000 aircraft from 9,000 now in service. Market growth will drive 65% of the demand, while the remaining 35% will replace ageing aircraft, according to the company.

While region-specific outlook differs considerably, efficiency and sustainability remain the underlying drivers of the projected market demand. The up to 150-seat segment will form an integral part of the global air transport eco system.

The economic performance of the airline industry will mostly depend on how costs rise and to what extent the industry can sustain a healthy revenue environment. Aircraft in the up to 150-seat segment are the best placed to combine cost efficiency with stronger yields, aviation officials say.

“Past performance is no guarantee of future results. Even though every facet of the industry has excelled over the past years, we are now warming up for the next period of higher costs, with pressures on yields likely to continue unabated. Profits are eroding and gains wiped out with rising costs”, said John Slattery, president & chief executive officer of Embraer Commercial Aviation.

The segment’s new product lineup challenges the “paradigm” that smaller aircraft necessarily have higher CASK, and now approach the seat cost economics of larger narrow-body aircraft with roughly 20% trip cost advantage.

Aircraft in the up to 150-seat segment is one of the main pillars of business sustainability. As the most efficient single-aisle family of aircraft, the E-Jets E2 are perfectly placed to consolidate Embraer’s position as the market leader in the segment and maximize profitability for both airlines and leasing companies.

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