Embraer cuts sales forecasts for small RJs

Dubai Air Show » 2005
December 11, 2006, 9:15 AM

Brazil’s Embraer has once again lowered its projection for the small regional jet segment, predicting a 10-year demand for just 500 units in the 30- to 60-seat segment in its latest market outlook for the airline and business jet markets. Just two-and-a-half years ago Embraer projected a 10-year market for 1,745 airplanes in the 30- to 60-seat jet category. Last year it revised its prediction to reflect a 10-year demand for 650 airplanes for the entire industry.

Embraer’s rival Bombardier recently announced its plans to halt production of its 50-seat CRJ200 starting in January. It called it a “temporary” disruption, but has not said when or if it expects production to resume. Both companies’ backlogs have fallen to double digits in recent months.

The Embraer forecast reflects a much more upbeat outlook for the rest of the market, however, projecting a total demand for 7,950 units of 30- to 120-seat aircraft over the next 20 years. Africa and the Middle East will account for only 280 of those airplanes, roughly a 4-percent share. The U.S., Canada and the Caribbean will lead all regions with a demand for 4,230 airplanes, or 53 percent of the market, says Embraer.

Embraer estimates a demand for 9,680 business jets over the same 20-year period, including a “conservative” estimate of 2,500 very light jets in the class of its new Phenom 100.

Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.