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 (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.