Embraer Sees a Demand for 720 New Jets for the Future

On March 29th, 2016, Embraer Commercial Aviation released news that it will take delivery of approximately 720 new jets that will be in the Latin America market. All of these 720 new jets will have a seat segment of as low as 70 and as high as 130 seat segment for the next 20 years. This seat segment number accurately reflects the 11 percent of the global demand for segments in this period.

With the delivery of these 70 to 130 seat segment jets, the jet fleet will jump from 310 units to about 740 units by the end of 2034.

Embraer Commercial Aviation released this news during the Feria del Aire y del Espacio.

Even though there seems to be a little bit of trouble when it comes to economic and political stability, this situation should have no long term effects on the region in terms of long term growth. On a macroeconomic level, the region should fine with all the different types of imbalances that are current in the region.

With all this expansion of fleet along with the expansion of the middle class in the region, Embraer is doing its best to enter the low and mid density markets. Here’s what Simon Newitt, the Embraer Vice President, Commercial Aviation, Latin America, has to say.

“Fleet optimization is key, as secondary markets are poised to lead the demand for new air travel. Carriers will continue to acquire new and efficient aircraft to serve low- and mid-density markets and to offer greater network connectivity.”

The first delivery of an E-Jet in Latin America was in 2005. It was Panama’s Copa Airlines that took delivery of the E190. Now, in 2016, there are over 200 E-Jets that are in this region. To add to this, Embraer is the leader in this market with segments that go up to 130 seats. With this type of presence, Embraer hold roughly around 70% of the market share. There has been over 1700 orders and 1200 deliveries for the E-Jets to this date. The company hopes to roll out the new E190-E2 in the beginning of 2018.


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