The up to 150-seat segment will form an ever more integral part of the global air transport eco system.
PARIS, FRANCE – Embraer announced at the 53rd International Paris Air Show, that over the next 20 years forecasts a steady market demand for 10,550 new aircraft with up to 150 seats worldwide, worth USD 600 billion. Market growth will rive 55% of total demand and the remaining 45% will be delivered to replace ageing aircraft.
Whilst region – specific outlooks vary considerably, efficiency and sustainability remain the underlying drivers to support the projected market demand. The up to 150-seat segment will form an ever more integral part of the global air transport eco system.
“Despite great results that have been shown by the industry since 2015, when the EBIT Margin touched the unprecedented level of 8.6%, we have seen those margins falling, systematically: 8.5% in 2016, 7.5% in 2017, 5.8% in 2018,” said John Slattery, President & CEO, Embraer Commercial Aviation. “For sure, those numbers are still strong, but it’s quite reasonable to consider that the peak of this great cycle is behind us”.
The economic performance of the airline industry will mostly depend on how far costs will rise and to what extent the industry can sustain a healthy revenue environment. Aircraft in the up to 150-seat segment are the most efficient tool to combine the best in cost efficiency with stronger yields.
“The up to 150-seat segment represents a very adaptable alternative to sustainable growth for the airline industry as it can serve multiple missions, with a very low risk and now following the arrival of the E2 family, with the most efficient single-aisle platform”, Slattery said.
Embraer and Azul sign pool program to support new E195-E2 fleet
Embraer also announced the signing with Azul Linhas Aereas Brasileiras, S.A. of a long-term Flight Hour Pool Program agreement to provide repairable component support for the carrier’s brand new fleet of Embraer E195-E2 jets, the second generation of the E-Jets family.
Azul, which placed a total order of 51 E195-E2, is the global launch customer for the new aircraft and will receive the first delivery during the second half of this year. The multiyear Flight Hour Pool Program agreement includes material services engineering and advanced component exchanges from Embraer spare parts facilities in Ft. Lauderdale, Florida, USA.
Azul joined the Embraer Pool Program in 2008, when it began operating its first generation of E-Jets, and more recently, the Repair Management Program. With the new Flight Hour Pool Program agreement, the airline will now have coverage for its entire Embraer fleet.
“We are very proud that Azul has placed further trust in Embraer to serve them and their new E195-E2 fleet, reinforcing our long-standing strategic partnership,” said Johann Bordais, President and CEO, Embraer Services & Support. “The Techcare Team is extremely excited to provide the unequaled service level our customers have come to expect from Embraer.”
“Signing up for this service of Embraer reiterates our philosophy of recognizing the value of Brazilian products. We are the only airline in the country to acquire aircraft manufactured in Brazil and, strengthening our partnership with Embraer, we will be the launchers of the new generation of the company’s E-Jets. This support which we agreed upon with them will guarantee an even more efficient operation, with greater aircraft competitiveness and availability, which will also impact the satisfaction of those who fly Azul,” said Alex Malfitani, Vice President of Finance, Azul.
Embraer’s Flight Hour Pool Program, which currently supports more than 40 airlines worldwide, is designed to allow airlines to minimize their upfront investment on high value repairable inventories and resources and to take advantage of Embraer’s technical expertise and its vast component repair service provider network. The results are significant savings on repair and inventory carrying costs, reduction in required warehousing space, and the virtual elimination of the need for resources required for repair management, while ultimately providing guaranteed performance levels.
Embraer Services & Support currently supports 100% of the E-Jets E2 delivered by offering a package of services customized for each customer and their business needs. These support programs are part of a suite of products that Embraer designed to assist the worldwide growing fleet of Embraer aircraft through TechCare.
The E195-E2 is the second of three new aircraft models that make up the E2 family of aircraft. The E190-E2 is already being operated by Norway’s Wideroe, the largest regional airline in Scandinavia, and Air Astana, a flag carrier of Kazakhstan.
Embraer and Binter Sign an Order for Two Additional E195-E2s
Finally, Embraer signed a contract with Binter, of Spain, for two additional E195-E2s, confirming purchase rights from the original contract, signed in 2018. The two new E195-E2s will be included in Embraer’s 2019 second-quarter backlog and have a value of USD 141.8 million, based on Embraer’s current list prices. The airline is celebrating 30 years of operations in 2019.
“We are extremely proud that Binter is reinforcing its commitment to the E2 program and has confirmed these new acquisitions even before the first E195-E2 delivery to the airline. We wish continued success to Binter as it modernizes its fleet and continues to expand into new international markets in Europe and Africa”, said Martyn Holmes, Vice President, Europe, Russia & Central Asia, Embraer Commercial Aviation.
Binter will receive its first E195-E2 jet in the second half of 2019, becoming the first European customer of the E-Jets E2’s largest model. The airline is configuring the aircraft with 132 seats in a very comfortable single-class layout.
“We are pleased to confirm the firm order for these two additional Embraer E195-E2s,” said Binter’s Vice President, Rodolfo Nunez “We know that the E195-E2 is the ideal aircraft model for our operations, and, with typical Embraer efficiency, Type Certification was exactly on schedule. This along with fuel burn and other performance indicators being even better than originally expected, we have total confidence in placing this new firm order.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
