China will need 1000 new jets by 2033

November 13, 2014 flight2000it

a6619884dfbe8b309755e34bdbb75730 Embraer, in a newly released China’s Regional Aviation Market Outlook 2014-2033, forecasts that 1,020 new 70 to 130-seat jets will be demanded by the Chinese regional aviation market by 2033, representing 16% of global deliveries of jets in that segment, as released in Embraer’s China Regional Aviation Market Outlook in a press conference today, during the 10th China International Aviation & Aerospace Exhibition, in Zhuhai, Guangdong Province.

As forecasted, in the coming two decades, air travel in China will increase 6.8% annually, fostered by the country’s sustained economic growth, with an expected 5.5% annual GDP growth rate. Fast urbanization and a growing middle class will also contribute to building China into one of the world’s fastest growing markets.

Regional aviation, supported by civil aviation policies over the past decade, is experiencing rapid development and playing an irreplaceable role in the air transport system. With the launch of the “Essential Air Service” program, the improvement of incentive policies, and more regional airports coming online in central and western China, the regional aviation sector is assured a promising future.

Yet, by an in-depth analysis of the current market weaknesses and insufficiencies, the Outlook finds that the mismatch between market demand and aircraft type results in poor connectivity and lower frequencies, while airlines call for right-sized aircraft to unlock the huge potential in the country’s secondary and tertiary markets, and to avoid irrational and unhealthy competition both on trunk lines and in regional aviation. The new generation of 70 to 130-seat regional jets, with lower operating cost and high performance, can be used in different business models.

The projection is for three hundred 70 to 90-seat jets and seven hundred twenty 90 to 130-seat jets. 87% of new deliveries will be deployed to support market growth, while 13% will replace old aircraft in the current fleet, which includes 50-seat airplanes.

Source and image: Embraer