IN­TER­VIEW: ‘PROFIT HUNTER’ UN­LEASHED

Em­braer es­ti­mates that the Asia-Pa­cific re­gion, in­clud­ing China, will see 1,710 new de­liv­er­ies by 2036, and the to­tal in-ser­vice fleet reach 1,790 air­craft over the same 20year pe­riod. Iden­ti­fy­ing Asia-Pa­cific as one of the most promis­ing mar­kets for the

SP's Airbuz - - Front Page -

SP’s AirBuz (SP’s): How do you feel tak­ing over the re­spon­si­bil­ity of Asia-Pa­cific re­gion? Ce­sar Pereira (Pereira): Asia-Pa­cific is a fas­ci­nat­ing re­gion. I feel ex­tremely ex­cited about the op­por­tu­nity to learn about the re­gion and its speci­fici­ties, but also happy to bring new in­sights from my pre­vi­ous ex­pe­ri­ence of work­ing with sev­eral air­lines all over the world, from dif­fer­ent busi­ness mod­els. SP’s: What are your plans to­wards this re­gion? Pereira: I see un­tapped op­por­tu­ni­ties in Asia-Pa­cific that our 70130+ seat jets can un­lock. The rapid growth of air traf­fic in the re­gion over last decade is very con­cen­trated on pri­mary mar­kets, which are over-com­pet­i­tive and air­lines are find­ing it hard to make prof­its with their large-ca­pac­ity air­craft.

There are about 158 mar­kets where there are typ­i­cally four com­pet­ing air­lines with more than 10 daily flights, yet we have iden­ti­fied over 800 mar­kets that have less than 1-5 daily flights. These routes could ben­e­fit from bet­ter fre­quency lev­els by us­ing 70-130 seat jets. We are ad­vo­cat­ing to air­lines the ben­e­fit of mov­ing from ‘red oceans’ to ‘ blue oceans’.

In In­dia, for in­stance, there is a big gap be­tween 70-seaters tur­bo­props and 180-seaters nar­row­bod­ies. The first mover in the 70-130+ seats seg­ment will have a great ad­van­tage by tap­ping this gap. We see a great po­ten­tial in In­dia given the op­por­tu­ni­ties for fur­ther re­gional con­nec­tiv­ity and re­main ac­tively en­gaged in this very promis­ing growth mar­ket.

In the 70-130+ seat mar­ket seg­ment, we es­ti­mate an in­dus­try de­mand of up to 350 units over 20 years, depend­ing on how the mar­ket evolves, which would en­able In­dia to en­hance its re­gional con­nec­tiv­ity. These jets would be used to grow sec­ondary and ter­tiary mar­kets and with the op­tion of by­pass­ing the ma­jor metro air­ports to avoid air traf­fic con­ges­tion.

Ce­sar Pereira is the newly ap­pointed Vice Pres­i­dent of Com­mer­cial Avi­a­tion for Asia-Pa­cific. Ce­sar has been work­ing at Em­braer for 14 years and prior to his cur­rent role, he was the Head of Con­sult­ing at Em­braer Com­mer­cial Avi­a­tion, where he worked hand in hand with air­lines to shape their plan­ning and strate­gies.

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