Embraer regional director Bruce Peddle explains why he believes the Embraer 170 will be a big hit in Asia.
Q: The USA is the prime market for you but do you see opportunities for the Embraer 170/190 family aircraft in this part of the world?
A: While the USA is no doubt a key market for Embraer, we designed and built the Embraer 170/190 family to meet specific requirements of airlines around the world. We invited many airlines to participate in the design phase and we listened. While growing market trends may first surface in the United States, to a great extent these trends will apply to the entire world including the Asia-Pacific region.
Q: Will this help the economics of Asia-Pacific airlines?
A: Traditionally, Asia-Pacific's low-density markets have been served using older aircraft in the 120-150 seat range, which has not always been economical. Many of these markets are underdeveloped, and in most cases are served by fewer frequencies than one daily flight. This in turn can have an adverse affect on tourism and business.
All the core benefits of opening more markets, optimising aircraft utilisation and expanding service offerings are applicable in Asia-Pacific. These markets can be better served using aircraft more appropriate to demand, which can in turn stimulate market activity.
Q: What do you think are the obstacles impeding the growth of budget airlines in Asia? Do you see it developing the same way as in Europe and the US?
The biggest obstacle impeding the growth of carriers in the Asia-Pacific region is the regulatory environment within which these airlines operate, with the exception of a few markets such as Australia and New Zealand. These airlines face government-imposed restrictions on frequency, which restrict market development.
Q: Which markets in Asia Pacific have the greatest potential for the 70-110 seat jet market?
A: There is significant potential for the Embraer 170/190 across all of Asia-Pacific, both among the mainline carriers and the emerging budget airlines, in areas of underdeveloped demand and low frequency in particular.
Q: How fast do you anticipate the market to grow?
A: The International Civil Aviation Organisation (ICAO) expects a strong recovery in 2004 and 2005 with rates in the range of 5-7% per year. From Embraer's perspective, we anticipate that the Asia-Pacific market over the next 20 years for aircraft in the 30-120 seat range will be approximately 490 aircraft, or 6% of world demand. More specifically, we believe that the majority of these aircraft will be in the 61 to 120 seat range.
Source: Flight Daily News
