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13-Nov-2014 8:59 AM

Embraer forecasts demand for 1000 regional jets in China

Embraer forecast (12-Nov-2014) that 1,020 new 70 to 130-seat jets will be demanded by the Chinese regional aviation market by 2033, representing 16% of global deliveries of jets in that segment. The projection is for 300 70 to 90-seat jets and 720 90 to 130-seat jets. 87% of new deliveries will be deployed to support market growth, while 13% will replace old aircraft in the current fleet, which includes 50-seat aircraft. Embraer forecast that over the next two decades, air travel in China will increase 6.8% p/a, fostered by the country's sustained economic growth, with an expected 5.5% annual GDP growth rate. Fast urbanisation and a growing middle class will also contribute to building China into one of the world's fastest growing markets. Chinese regional aviation, supported by civil aviation policies over the past decade, is "experiencing rapid development and playing an irreplaceable role" in the air transport system. The launch of an Essential Air Services programme, the improvement of incentive policies, and more regional airports coming online in central and western China all assure the future of the regional aviation sector. Embraer also sees that the mismatch between market demand and aircraft type results in poor connectivity and lower frequencies, while airlines call for right-sized aircraft to unlock the huge potential in the country's secondary and tertiary markets, and to avoid irrational and unhealthy competition both on trunk lines and in regional aviation. [more - original PR]

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