During the China International Aviation & Aerospace Exhibition in Zhuhai this week, Embraer released its latest outlook for the Chinese commercial aviation market, which forecasts that the region will take delivery of 1,390 new jets with up to 150 seats over the next 20 years. A big order number with a big value: US$82 billion at list prices.
“According to statistics, the Asia-Pacific market enjoyed the strongest growth in terms of passenger volume in 2017. In China, specifically for the domestic market, the growth rate was 13.3%. Thanks to the steady pace of economic growth, continuous investment in airport construction, the implementation of basic air service plans, and the increasing number of middle class that fueled the demand for air travel, we believe for the next 20 years, aircraft with up to 150 seats will enjoy huge potential in China,” stated Arjan Meijer, chief commercial officer of Embraer Commercial Aviation.
Over the last few decades, Embrear researchers have observed that China has introduced a series of favorable policies to support air traffic growth and invested heavily in airport construction. According to CAAC’s plan (Civil Aviation Administration of China), more than 50 new airports will be built during the 13th Five-Year Plan. By 2035, a further 140 new airports will be constructed and most of the newly-built airports will be regional. With the increased number of airports, the market calls for more regional aircraft with an appropriate number of seats to develop new routes.
Embraer’s research has also found that data shows that the top 30 airports in China handle nearly 80% of total passengers, which is resulting in saturated capacity and a shortage of slots in hub airports. Therefore, Embraer holds the view that airlines will put more efforts into the second and third-tier cities with abundant aviation sources.