Newjetjockey
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- Jun 12, 2003
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Regional airline growth gives manufacturers sunny forecast
Dateline: Wednesday April 28, 2004
Over the next 20 years, some 8,450 regional aircraft in the 30/120-seat range will be needed, according to an industry forecast by Embraer presented at the Regional Airline Assn. annual spring meeting in St. Louis.
Demand will be divided almost evenly among aircraft in the 30/60, 61/90 and 91/120 seat ranges, the forecast said. North America will continue to be the largest market with 56% of deliveries, while Europe, Africa and the Middle East will account for 23%.
Embraer also cited the prospect of growth in China, where it has established a joint venture with AVIC II to produce between 12 and 18 ERJs a year. The first ERJs rolled off the factory line in Harbin in Nov. "China continues to be a market ripe with opportunity," said Embraer's Orlando Neto. High import fees have made market entry difficult, but "the joint venture overcame that major hurdle," he said.
Embraer and Bombardier officials agreed that financial losses by mainline carriers have pushed the trend to smaller, more efficient aircraft and they believe scope clauses will continue to be relaxed as airlines deal with soaring costs. "The industry has been driven by continuous market pressure," said Bombardier VP-Marketing and Airline Analysis Barry MacKinnon. "We think the revolution continues in a variety of forms."
Bombardier has set up a separate unit to explore the feasibility of a new aircraft in the 110/135-seat range that will offer customers 15% savings in operating costs. "We tried it with the BRJ-X program but we only came up with a 7% saving, which wasn't enough to get us over the hump," said President-Regional Aircraft Steven Ridolfi. That goal could be more realistic now with improved engine technology, structural design and material capabilities, he said.
GE also is anticipating an increase in business tied to the continued growth in the Regional industry and expects 2004 to be the third consecutive year with more than 400 engine deliveries. "We anticipate growing the installed base of CF34 engines to double the current size by 2008, with newer deliveries favoring the larger 70-to-90-passenger aircraft," said GM Small Commercial Engine Operation Charles Blankenship.--Sandra Arnoult
Dateline: Wednesday April 28, 2004
Over the next 20 years, some 8,450 regional aircraft in the 30/120-seat range will be needed, according to an industry forecast by Embraer presented at the Regional Airline Assn. annual spring meeting in St. Louis.
Demand will be divided almost evenly among aircraft in the 30/60, 61/90 and 91/120 seat ranges, the forecast said. North America will continue to be the largest market with 56% of deliveries, while Europe, Africa and the Middle East will account for 23%.
Embraer also cited the prospect of growth in China, where it has established a joint venture with AVIC II to produce between 12 and 18 ERJs a year. The first ERJs rolled off the factory line in Harbin in Nov. "China continues to be a market ripe with opportunity," said Embraer's Orlando Neto. High import fees have made market entry difficult, but "the joint venture overcame that major hurdle," he said.
Embraer and Bombardier officials agreed that financial losses by mainline carriers have pushed the trend to smaller, more efficient aircraft and they believe scope clauses will continue to be relaxed as airlines deal with soaring costs. "The industry has been driven by continuous market pressure," said Bombardier VP-Marketing and Airline Analysis Barry MacKinnon. "We think the revolution continues in a variety of forms."
Bombardier has set up a separate unit to explore the feasibility of a new aircraft in the 110/135-seat range that will offer customers 15% savings in operating costs. "We tried it with the BRJ-X program but we only came up with a 7% saving, which wasn't enough to get us over the hump," said President-Regional Aircraft Steven Ridolfi. That goal could be more realistic now with improved engine technology, structural design and material capabilities, he said.
GE also is anticipating an increase in business tied to the continued growth in the Regional industry and expects 2004 to be the third consecutive year with more than 400 engine deliveries. "We anticipate growing the installed base of CF34 engines to double the current size by 2008, with newer deliveries favoring the larger 70-to-90-passenger aircraft," said GM Small Commercial Engine Operation Charles Blankenship.--Sandra Arnoult
