Embraer: Strong Demand for Bizjets over Next 10 Years
In its just-released long-term aviation market outlook, Brazilian aircraft manufacturer Embraer forecasts global demand for 11,880 business jets worth approximately $204 billion between next year and 2019. This doesn’t count the new VLJ air-taxi and branded charter market, which the company believes could add another 1,800 to 2,800 jets to the personal and entry-level segments over the 10-year span. Embraer noted that since 2006 the industry has posted consecutive delivery records, largely supported by the growing demand from non-U.S. markets, but deliveries are predicted to slow next year, with an expected “market adjustment” in the 2009 to 2012 period. “Despite the reduction in short-term deliveries,” Embraer said, “long-term sustainable growth is foreseen for the business jet market, due to the return of economic growth, albeit at more conservative levels.” Meanwhile, the company late last week said it recorded third-quarter net sales of $1.546 billion and net income of $56.7 million. Net revenues for Embraer Executive Aviation reached $223.1 million in the third quarter, representing a 5.5-percent increase over the $211.4 million posted at that point last year. It delivered nine Legacy 600s in the quarter, the same number as last year.