Other News - 11/16/2007

Embraer reported more than $1.1 billion worth of firm orders from nine customers at last week's Dubai Air Show, with commercial aircraft commitments coming from NAS (five E-190s) (ATWOnline, Nov. 13) and Virgin Nigeria (seven 170s and three 190s) (ATWOnline, Nov. 12).

Separately, the company released a long-term market outlook projecting a 4.9% annual increase in global traffic during 2008-27, sparking demand for 7,450 30/120-seat jets worth $235 billion. Highest growth rate will be in China (7.5% annually), while mature markets North America and Europe will rise 4%. Other areas are projected to increase 5.5% per year. In 2008-17 it expects 3,150 deliveries, with 4,300 in 2018-27. Over the 20-year period it expects airlines to add 1,100 30/60-seat aircraft, 2,600 61/90-seaters and 3,750 91/120-seaters. It said the 30/60-seat segment "has reached maturity" but will "remain the backbone" of the US and European hub systems. Those two areas will take the greatest majority of new aircraft during the forecast period, 45% and 18% respectively, with China taking 10%. Regional jets are expected to have the least penetration in the Middle East, which Embraer said will need only 190 aircraft, or 2% of the total.