The 70-130+ seat jet world fleet-in-service will increase from 2,700 aircraft in 2016 to 6,710 by 2036, the fastest growing segment among all aircraft seat capacities.
PARIS, FRANCE – According to the latest Market Outlook, Embraer projects a steady market demand for 6,400 new jets in the 70-130+ seat capacity category (2,280 units in the 70-90 seat segment and 4,120 units in the 90-130+ seat segment), worth USD 300 billion, by 2036.
The 70-130+ seat jet world fleet-in-service will increase from 2,700 aircraft in 2016 to 6,710 by 2036, the fastest growing segment among all aircraft seat capacities. Market growth will drive 63% of total demand and the remaining 37% will be delivered to replace ageing aircraft.
70-130+ Seat Jet Deliveries by Region
|
Region |
Deliveries |
Share |
|
North America |
2,020 |
32% |
|
Asia Pacific |
1,710 |
27% |
|
Europe |
1,150 |
18% |
|
Latin America |
690 |
11% |
|
CIS |
390 |
6% |
|
Africa |
220 |
3% |
|
Middle East |
220 |
3% |
|
World (2017-2036) |
6,400 |
Whilst region-specific outlooks vary considerably, the underlying drivers to sustain the projected market demand for jets in the 70-130+ seat capacity category remain intact, from feeding complex bank structures at major hubs to pioneering new markets and complement narrow-body aircraft operation.
Fleet optimization is critical in the vicissitudes of business cycles, and a rationalized fleet does not necessarily signify an optimized one. Right-sized aircraft call for a new smarter approach. Greater control in matching aircraft capacity to market demand prevents the erosion of unit revenues and provides competitive cost structure.
The E195-E2, for example, will provide an attractive proposition with much lower trip costs and comparable seat-mile costs to than its large narrow-body counterparts, while combining growth and higher returns with the opportunity to increase unit revenue with a right-sized aircraft.
“The airline industry is notoriously known for its boom and bust cycles. Better seat inventory control allows a continuous search for higher profits and efficiency. The ability to shift back towards revenue unit growth, instead of aggressive capacity expansion, is crucial”, said John Slattery, President & CEO, Embraer Commercial Aviation.
Jets in the 70-130+ seat capacity category are one of the main pillars of business sustainability. As the most efficient single-aisle family of aircraft, the E-Jets E2 is perfectly positioned to keep Embraer as the market leader in the segment and maximize profitability for both airlines and leasing companies.
Belavia Acquires Two Additional E-Jets for its Embraer Fleet
Embraer and Belavia, Belarusian Airlines, the national carrier of Belarus, have announced today, at the 52nd Paris International Air Show, a firm order for two current generation E-Jets: one E175 and one E195 – both for delivery in 2018. The firm order, which has value of USD 99.1 million, based on Embraer’s current list price, will be included in Embraer’s 2017 second-quarter backlog.
The aircraft will join the four Embraer jets already operated by Belavia – two E195s and two E175s. The acquisition is an essential part of Belavia’s fleet renewal initiative; a core priority in the airline’s business strategy.
"Embraer’s E-Jets family of aircraft has given Belavia the flexibility we need without orders such as this are important, not only because they demonstrate that the customer’s existing aircraft are performing well and delivering value to their business and their passengers, but also because it confirms that the Embraer team has done a good job in supporting the airline and their aircraft,” said John Slattery. Anatoly Gusarov, Director General of Belavia said “Our existing Embraer fleet is performing with high dispatch rates and compelling economics – and our customers really enjoy the high levels of comfort the aircraft provides. Embraer was the clear choice for our continued growth. All the newly ordered planes will be painted in a new Belavia livery. Our passengers have already appreciated airline`s new design”.
KLM Cityhopper Orders Two Additional E190s
Embraer announced a firm order for two additional E190s for KLM Cityhopper, KLM’s European regional subsidiary. The firm order will be included in Embraer’s 2017 second-quarter backlog and have a list price of USD 101 million.
These new aircraft will join the existing 30 E190s and nine E175s flying with KLM Cityhopper. Deliveries for the newly ordered aircraft are scheduled for 2018. When KLM Cityhopper’s move to an all Embraer fleet is complete, the airline will have 49 E-Jets, the largest E-Jet fleet in Europe – 32 E190s and 17 E175s
“Our partnership with KLM Cityhopper is long and successful because we always strive to do better, and to offer our customers value beyond just the performance of ouraircraft.” said Arjan Meijer, Chief Commercial Officer, Embraer Commercial Aviation. “Repeat orders from customers as prestigious as KLM Cityhopper must be celebrated, but also serve as a reminder to focus not just on aircraft manufacturing and technologies but on service and support. We’re also proud that the Netherlands, Embraer’s home base in Europe, is also the home of our largest European operator – KLM Cityhopper.”
Boet Kreiken, Managing Director of KLM Cityhopper said: “KLM Cityhopper’s 67 destinations will soon be served by an all-Embraer fleet. At present, 38 of our 47 aircraft, operating 105,000 flights annually, are already Embraers. Our regional operations provide communities with essential connectivity between Europe’s cities and the world beyond. Cityhopper is the key feeder airline for KLM’s long-haul services and those of our 18 codeshare partners, which means it is mission critical. The 2×2 cabin configuration and the on-time and technical performance of our E-Jet fleet are key reasons for partnering with Embraer.”
KLM Cityhopper started the process of replacing its fleet of venerable Fokker aircraft for E-Jets in 2008, in order to enhance the existing network and to permit the efficient development of new routes.
Embraer is the world’s leading manufacturer of commercial jets with up to 130+ seats. The Company has 100 customers from all over the world operating the ERJ and the E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged more than 1,700 orders and over 1,300 deliveries, redefining the traditional concept of regional aircraft by operating across a range of business applications.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
