Embraer sets its sights on China's regional aviation sector. $ERJ (+1.09%)
The company is targeting the rapidly growing regional aviation market in China's smaller cities to further drive its growth.
Over the next twenty years, China is expected to have a demand for 1,630 aircraft with a maximum of 150 seats. This is according to the latest market outlook published by Embraer during the recently concluded 15th International Aerospace Exhibition in Zhuhai, Guangdong Province.
"To build an air transportation system that connects major and regional routes and links urban and remote centers, China needs to deploy the right size aircraft to optimize the network structure. Smaller jets are the key to building network connectivity on a larger scale," said Martyn Holmes, Chief Commercial Officer of Embraer Commercial Aviation, during the air show in Zhuhai.
"The ability of regional hubs to offer high-frequency flights between more cities and improve service quality will attract more passengers," Holmes said.
The Brazilian manufacturer currently operates around 80 aircraft in China. These aircraft connect small and medium-sized airports, facilitating travel in the regional market.
More and more regional airports in second and third-tier cities in China are seeing an increase in passenger traffic, with annual passenger throughput reaching an all-time high last year.
In 2000, Sichuan Airlines signed an order with Embraer for five ERJ145 regional jets. It was the first airline in China and the Asia-Pacific region to use this aircraft model.
In 2003, Embraer and a Chinese company jointly established a factory to manufacture the ERJ145 in China. It was the first time that China entered into a joint venture with a foreign civil aircraft manufacturer to produce aircraft.
The cooperation between China and Brazil is described as a model of South-South cooperation in high-end manufacturing, Embraer said.
https://www.chinadaily.com.cn/a/202411/21/WS673e71c6a310f1265a1ceb73.html
