Aerospace
Embraer Projects Demand for 1,020 New Deliveries in 70 to 130-Seat Segment in China
Beijing, China, September 16, 2015 – During the China 2015 Aviation Expo taking place at the National Convention Center, Embraer Commercial Aviation released its 2015-2034 Market Outlook for the Chinese market, which presents delivery projections of new aircraft over the next 20 years.
China’s TP500 freight drone makes its maiden flight.(Opens in a new browser tab)
The Company forecasts that 1,020 new jet aircraft in the 70 to 130-seat segment will be delivered in China by 2034. Embraer projects worldwide deliveries of 6,350 jets, in the 70 to 130-seat segment. The value of these deliveries, at list prices, will reach an estimated US$300 billion.
Embraer Commercial Aviation has achieved an 80% share of the regional aviation market in China. Currently, Embraer’s ERJ145 and E190 are serving over 120 airports in more than 400 markets. As of June 30, Embraer had logged 167 firm orders for commercial jets from customers in China, of which 130 have been delivered.
Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation, said: “The aviation industry in China will continue to be robust in the foreseeable future. We believe China’s aviation industry will keep its momentum during the next 20 years and become the largest single-country market in the world.”
China’s economy will remain strong, with a projected annual growth rate of 5.6%. This is one of the drivers that will lead to a 7% annual growth for air travel in China over the next 20 years, and become the highest in the world. “As a world leader in this segment, Embraer is ready to embrace this growth momentum and continue to bridge the current travel gap in the regional market in China,” said Guan Dongyuan, Senior Vice President of Embraer and President of Embraer China.
The report points out that several favorable policies by the central government have had a stimulating effect on the industry: The “One Belt, One Road” initiatives, for instance, a mega-scale blueprint that focuses on the connectivity between countries and regions by all modes of transportation, underscore the importance of air transportation and encourage more regional airlines to launch new routes and improve local air transportation.
The Chinese aviation industry has been reaping the benefits of the central government’s reforms. China’s current Five-Year Plan, under CAAC coordination, includes the construction of 70 new airports and feasibility studies for an additional 28, highlighting the importance of air transportation. The CAAC is also encouraging the introduction of regional aircraft by offering incentives of up to RMB 1 billion per year to the regional aviation industry.
In this context, air transport development will be uneven across the country. Access to air travel in second and third-tier cities will grow twice as fast as in major cities, and the central and western provinces, where there are sufficient time slots and incentives from local governments, will lead the growth in the next two decades. Regulations for new entrants are being relaxed and this has led to a surge in new private airlines. In light of the development of Western and Central China, start-up airlines will exploit the opportunity to operate from small bases, promoting efficiency and profitability throughout the country.
Embraer is also witnessing a more pragmatic trend among airlines, which are changing their metrics of success from market share to shareholder value, in the new landscape. Right-sized aircraft can generate higher revenue and profit per seat, and bring a better return for investors. Embraer E-Jets and E-Jets E2 offer a perfect solution, as they usually command higher average yield. The marginal cost of flying an extra seat is often higher than the lower fare it generates, as larger aircraft introduce surplus capacity that is often sold at widely varying discounts.
“The government’s focus on a new stage of development, combined with the mindset shift to shareholder return in the Chinese airline industry, unveils huge opportunities for regional aviation, which generates enormous demands for jets in the 70 to 130-seat aircraft,” concludes Dongyuan.
About Embraer Commercial Aviation
Embraer is the world’s leading manufacturer of commercial jets that seat up to 130 passengers. Nearly 900 aircraft from the 37, 44, and 50-seat ERJ 145 family of regional jets have been delivered to airlines since their introduction in 1996. The E-Jet family includes four larger aircraft that have between 70 and 130 seats. The E170, E175, E190, and E195 set the standard in their category with their advanced engineering, high degree of efficiency, spacious, ergonomic cabins with two-by-two seating, and attractive operating economics. Since E-Jets entered revenue service in 2004, Embraer has received over 1,650 firm orders for this aircraft family. More than 1,100 have been delivered.
Aerospace
India is set to build a central command for the Air Traffic Control system, called ISHAN
India’s air traffic growth has led to increased responsibilities for air traffic control. The Airports Authority of India (AAI) is considering centralizing air traffic control for aircraft, dividing the country into four regions. The goal is to consolidate India’s segmented airspace into a single entity to improve air traffic management (ATM) efficiency, safety, and smoothness.
Recently, the AAI invited expressions of interest to develop a detailed project report for the Indian Single Sky Harmonized Air Traffic Management (ISHAN) initiative in Nagpur. Under this plan, air traffic controllers in Nagpur would handle domestic flights flying above 25,000 feet, eliminating the need for coordination among controllers in different regions.
For domestic regional flights operating above 25,000 feet, control would shift to the central command in Nagpur. This consolidation aims to enhance airline operations, increase flight handling capacity, and reduce congestion and flight times for passengers.
Currently, the AAI provides ATM services over Indian airspace and adjoining oceanic areas, covering over 2.8 million square nautical miles. This airspace is divided into four flight information regions (FIRs) in Delhi, Mumbai, Kolkata, and Chennai, along with a sub-FIR in Guwahati.
FIRs are responsible for providing air traffic services, including weather information, visibility, and search and rescue assistance. The proposed unification under the ISHAN initiative aligns with the projected growth of the aviation industry, which anticipates a doubling of domestic passenger traffic by 2030.
Aerospace
Does AirAsia show interest in Comac aircraft in the future?
Tony Fernandes, CEO of Capital A, operating as AirAsia Group, recently paid a visit to the facilities of COMAC on April 2, 2024, and was thoroughly impressed by what he witnessed.
C919 already securing nearly 1000 orders
COMAC, known for its homegrown aircraft, has launched two promising jets: the ARJ21 and the C919 aircraft. Both aircraft are gaining popularity in the Chinese market, with the C919 already securing nearly 1000 orders from various airlines.
Fernandes expressed his admiration for COMAC’s achievements in aircraft manufacturing, acknowledging the immense challenge it entails. His visit underscored the realization that AirAsia now has a viable third option when it comes to selecting aircraft for its fleet.
During his tour, Fernandes was delighted by the innovation and technology evident in COMAC’s aircraft production and the company’s commitment to long-term partnerships.
He noted that many Western companies have shifted away from prioritizing loyalty and customer service, opting instead for short-term gains and a narrow definition of success.
Last month, COMAC embarked on an international tour, showcasing demonstration flights to neighboring countries, particularly Indonesia and Malaysia. Fernandes believes that the positive impression left by COMAC during his visit opens up new opportunities for collaboration.
Fernandes emphasized COMAC’s remarkable achievements
The shared values of loyalty, customer service, and long-term vision align closely with AirAsia’s ethos, making collaboration with COMAC appealing. With a focus on innovation and excellence, both companies stand to benefit from a partnership grounded in trust and a shared commitment to success.
Indonesia and China have already collaborated in validating and maintaining the airworthiness of the ARJ21 aircraft, indicating a solid foundation for future partnerships.
In his statement, Fernandes emphasized COMAC’s remarkable achievements and genuine desire for long-term partnership, highlighting the absence of ego and a genuine willingness to succeed together. He marveled at COMAC’s fully automated, AI-driven factory, a testament to their dedication to innovation and efficiency.
Fernandes criticized Western firms for prioritizing short-term gains over loyalty, customer service, and long-term strategy, emphasizing the importance of understanding customers’ needs and collaborating to achieve success.
Aerospace
Indigo will soon launch Air Taxi Service in India
InterGlobe Enterprises, the parent brand of IndiGo, is set to revolutionize travel in India with its upcoming air taxi service.
Scheduled for a potential launch in 2026, this innovative venture promises a seamless journey for passengers between two bustling hubs. Delhi and Gurgaon in Haryana. The forthcoming service is projected to revolutionize the daily commute, offering passengers a swift aerial journey covering the distance in a mere 7 minutes.
This remarkable efficiency contrasts starkly with the conventional 90-minute drive, underscoring the immense time-saving potential for commuters. The anticipated fare, ranging from Rs 2,000-3,000, makes this innovative mode of transport not only swift but also remarkably competitive in pricing.
At the heart of this ambitious endeavor lies a strategic partnership with Archer Aviation, a pioneer in electric vertical takeoff and landing (eVTOL) aircraft technology. Under this collaboration, Archer will supply 200 state-of-the-art eVTOL aircraft, representing an investment of US$ 1 billion. These cutting-edge aircraft, capable of accommodating up to four passengers alongside the pilot, epitomize the future of sustainable air travel.
Powered by six battery packs, Archer’s eVTOL aircraft boast rapid charging capabilities, enabling a swift turnaround between flights. With a charging time of just 30-40 minutes, these eco-friendly aircraft ensure minimal downtime, maximizing operational efficiency.
Similar services are anticipated to be introduced by the joint venture in Bengaluru and Mumbai as well. Nevertheless, the service rollout period has not yet been made public by the company. Next year, it is anticipated to get its certification. Following this, the company will start the certification procedure with the Directorate General of Civil Aviation (DGCA).
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