Aircraft Manufacturer Embraer Shares 2024 Perspectives

Brazil-based global aircraft manufacturer Embraer, the third largest commercial jet manufacturer, shared its perspectives for 2024.

  • 64 commercial aircraft deliveries for 2023
  • This is one unit short of its planned 65 to 70 target but it’s still 12% more than 2022
  • Goal is to return to around 90 annual deliveries which we achieved in 2018 and 2019
  • 2023 revenue was nearly the same as 2019, it is still only at 70% of pre-pandemic output
  • Working with suppliers to grow this year’s output target by double digits
  • “One sticking point is the pilot shortage. Fewer available pilots favours interest in bigger narrowbodies, and that creates a gap between those aircraft and the regional fleet. There have been a few soft years but the shortage seems to be resolving itself. That implies that we’ll see more demand for smaller narrowbodies which should fill in that gap. In the meantime, orders for the E175 in the USA remain strong since there isn’t movement on pilot scope clauses.”

Source: Embraer
Photo Credit: Embraer

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Central Asian Airline Silk Avia Expands Fleet with New ATR Aircraft

  • Nordic Aviation Capital delivered first new ATR 72-600 to Uzbekistan’s airline Silk Avia
  • Contract for five new ATR 72-600 was signed in November 2022

Leading regional aircraft lessor Nordic Aviation Capital (NAC) and ATR, the world’s number one regional aircraft manufacturer, announced the successful delivery of the first new ATR 72-600 to Uzbekistan’s airline Silk Avia. This milestone marks the beginning of a new era for regional connectivity in Central Asia.

The ATR 72-600, which was delivered by ATR to NAC in December 2023, is part of an order announced in November 2022 during the visit of the President of Uzbekistan, Mr. Shavkat Mirziyoyev, in Paris. The contract includes a total of five new ATR 72-600 aircraft, with two being provided by NAC and three directly by the manufacturer.

It is the first new ATR aircraft ever delivered to Central Asia. With its advanced technology, superior economics and unrivalled versatility, the ATR 72-600 will contribute to the development of regional connectivity in Uzbekistan and surrounding countries. Silk Avia, now part of Uzbekistan Airways, will integrate these brand new aircraft into its existing ATR fleet, enhancing the airline’s ability to serve a wider range of destinations and meet the growing demand for efficient and low-emission regional air travel.

Shukhrat Khudaykulov, Chairman of the Board of Uzbekistan Airways, said “Silk Avia, which has become a part of Uzbekistan Airways Group, has set an ambitious goal to become a leader in air transportation on domestic routes of the country. It is planned to constantly expand the route network, increase the number of flights and efficiently operate them on new ATR 72-600. This type of aircraft will help to provide the necessary conditions for a comfortable flight. Moreover, our common goal, the goal of New Uzbekistan, is to make flights affordable and develop domestic tourism of the country. It will undoubtedly be achieved through flights on ATR brand turboprop aircraft”.

Norman C.T. Liu, President & CEO of NAC, said: “We welcome Silk Avia, part of the Uzbekistan Airways Group, as a customer and are pleased to deliver the first new ATR 72-600 to the airline.”

Alexis Vidal, ATR’s SVP Commercial, said: “We warmly welcome Silk Avia to the ATR family. Their selection of the ATR 72-600 marks an important step as we begin operations in the promising market of Uzbekistan and wider Central Asia. Silk Avia will play a pioneering role in demonstrating the huge benefits affordable and low-emission regional aviation can deliver to this dynamic region. Our advanced ATR 72-600 turboprops are the ideal solution to connect communities and energise the national economy through their efficiency and flexibility. I look forward to following their progress and growth for many years to come.”

About Silk Avia

Silk Avia was established on 6 July 2021 and now is a subsidiary of Uzbekistan Airways Group. Silk Avia fleet consists of medium-haul passenger aircraft ATR 72-600 with a capacity of up to 72 people. These are economical and environmentally friendly aircraft that allow passengers to be transported safely and inexpensively over short distances. Our goal is to connect all regions of Uzbekistan, flying both to the most popular destinations and reviving long-forgotten routes.

About Nordic Aviation Capital

NAC is the global leader in regional aircraft leasing and is expanding into larger narrowbody aircraft leveraging our world class asset management platform.

Source: ATR
Photo Credit: ATR

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Regional Aircraft Manufacturer, ATR, Delivered 36 Aircraft in 2023

ATR, the world’s leading regional aircraft manufacturer, announced its 2023 annual results, highlighting a robust growth through increased deliveries and sales, strong performance of support and services, acquisition of new customers and route creation.

  • ATR delivered 36 aircraft in 2023, a 44% increase from 2022. This reflects a positive momentum, while the year was still beset by lingering supply chain disruptions, with raw material and component shortages slowing down the manufacturer’s ambition to ramp up.
  • With 40 new aircraft sold in 2023, a 53% rise from the prior year, the company achieves a book-to-bill ratio at over 1.
  • ATR welcomed 11 new customers in 2023, of both new and pre-owned aircraft, and recorded over 100 transactions on the second-hand market, demonstrating the strong demand for ATR’s advanced, low-emission and cost-effective turboprops.
  • While Asia remains ATR’s most dynamic market, the company also secured orders from Latin American and European customers in 2023, for both fleet growth and replacement.
  • Overall, 160 new routes were opened by ATR aircraft last year, up from 150 in 2022.
  • ATR achieved almost $1.2 billion in revenues for the first time since the pandemic, also supported by a record year for services with revenues over $400 million.

Looking at the regional market, the company sees further demand in the next years, with expected fleet growth mainly in:

  • South Asia (India)
  • South-East Asia (Indonesia, Philippines)
  • Brazil

New regulations related to rising environmental pressure also create opportunities for ATR to capture a significant portion of the replacement market, especially in Europe, Japan, Canada and the United States, as ATR aircraft offer an immediate solution to cut down emissions dramatically compared to similar-size regional jets.

Nathalie Tarnaud Laude, ATR’s CEO, commented “2024 will be a year of stabilisation, paving the way for future growth, and we have already delivered two aircraft since the beginning of the year, which sets a promising pace for ATR.” She added: “Our 2023 results underscore the value and relevance of our products and services and our ability to adapt to changing market dynamics. Our turboprops remain the backbone of many regional airlines’ fleets, praised for their fuel efficiency, low emissions, cost-effectiveness and versatility.

Source: ATR Press Release
Photo Credit: ATR Press Release

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“India Will Lead South Asia To Become Fastest-Growing Commercial Aviation Market” – Boeing

  • India’s robust economy and emerging middle class driving annual traffic growth of 8%
  • South Asian carriers to add more than 2,700 planes over 20 years — quadrupling the region’s current fleet

Boeing forecasts the South Asia region will become the fastest-growing commercial aviation market with more than 8% annual traffic growth over the next 20 years. Supported by a strong economy, India’s rapidly expanding middle class will drive growth in regional air travel.

To meet rising passenger and cargo demand, South Asian carriers are projected to quadruple the size of their fleets over the next two decades. Carriers will require more than 2,700 new airplanes to address growth and fleet replacement, according to Boeing’s Commercial Market Outlook (CMO), an annual forecast of 20-year demand for commercial airplanes and related services.

“Indian low-cost carriers continue to stimulate demand and connect emerging regions with low fares, holding nearly a 90% share of all domestic seats in the region. This reflects the rapid pace of the region’s recovery and economic activity, as traffic and capacity now exceed pre-pandemic levels,” said Darren Hulst, Boeing vice president of Commercial Marketing.

“Similarly, long-haul traffic and capacity to and from India and South Asia lead the way globally, relative to 2019, as nonstop services to North America, Europe, East Asia and Oceania continue to be added. Strong economic growth and confidence in the commercial aviation market have led to record orders for new, more efficient airplanes in India.”

The South Asia market is expected to quadruple its fleet over the next two decades to meet passenger demand. Boeing forecasts the region will require 37,000 pilots and 38,000 maintenance technicians over the next 20 years, driven primarily from growing demand in India.

The South Asia CMO includes these projections through 2042:

  • Of 2,705 new deliveries, 72% will support fleet growth while 28% will replace older jets with more fuel-efficient models.
  • Single-aisle airplanes will account for more than 85% of new airplane deliveries.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity.

Source: Boeing
Photo Credit: Boeing

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Malaysia Aviation Group Is Set to Induct 12 New Aircraft in 2024, Will Recieve First A330neo in Q3 of This Year

As part of its ongoing fleet modernisation plan, Malaysia Aviation Group (MAG) is set to induct 12 new aircraft in 2024, including its first Airbus 330-900 (A330neo) which is scheduled to arrive in Q3 2024. The Group is looking to receive four (4) of the new aircraft type this year, alongside eight (8) of the Boeing 737-8 aircraft to support its network growth requirements.

In August 2022, MAG signed Memorandum of Understandings (MOU) with Airbus, Rolls-Royce and Avolon for the acquisition of 20 A330neo aircraft which are scheduled to be delivered through to 2028. 10 of the aircraft are directly purchased from Airbus with a back-to-back sale and leaseback arrangement with Avolon, while the remaining 10 are leased directly from Avolon. The acquisition underscores the Group’s steadfast commitment as it seeks to provide modernity and elevate the standards of its service offerings, while ensuring that it can support the post-pandemic growth of the aviation industry.

The A330neo is set to provide improved operational efficiency to the MAG fleet while also allowing it to address environmental targets by offering up to 25% reduction in fuel consumption and emissions. With a 1-2-1 configuration, the newly designed Collins Aerospace Elevation Business Class seats will be a first for the Group, featuring an all-suite cabin with individual privacy doors which prioritises cabin comfort and practicality. The seat covers will feature the signature songket motif, a homage to Malaysia’s cultural heritage seamlessly infused with a modern touch, creating a harmonious blend of tradition and contemporary style. With an all-aisle access layout, the seats ensure a comfortable and fully flat experience, incorporating luxury design influences and optimal styling flexibility.

With the introduction of these new seats, Malaysia Airlines is poised to become the flagship carrier in the world to feature the Elevation seats on the A330 airframe. The A330neo will comprise of 297 seats (28 in Business Class and 269 in Economy Class, of which 24 seats come with extra legroom).

Additional features include wireless charging pods, ergonomic seat cushions, highly integrated in-flight entertainment (IFE) solutions, including Kids mode, and ample space to work, relax, and dine in ultimate comfort. The aircraft will also be fitted with Wi-Fi connectivity, ensuring that passengers can experience a practical cabin space onboard Malaysian Hospitality.

Datuk Captain Izham Ismail, Group Managing Director of MAG, said, “We are excited to induct the first of 20 Airbus A330neo’s in Q3 of this year, which will gradually replace our A330ceo fleet and operate to our network across Asia, Oceania, and the Middle East. This expansion is not just about increasing our inventory in numbers but also introducing the first-of-its-kind cabin class, new seats and experiences that prioritises customer safety, comfort and overall satisfaction. We will continue to channel our investments into endeavours that strategically align with the key pillars driving our customer value proposition, namely cabin comfort, in-flight dining, and service delivery of our esteemed cabin crew. We aspire to curate an overall passenger experience that not only meets premium standards but exceeds them, underpinned by our inimitable Malaysian Hospitality.”

To further strengthen its fleet modernisation programme, the Group will also be retrofitting six (6) of its A350-900s beginning 2026 to ensure consistent cabin standardisation and premium experiences for its guests in alignment with the new A330neo cabin. MAG currently owns a fleet size of 104 through its subsidiaries Malaysia Airlines, Firefly, MASwings and MASkargo.

Source: Malaysia Airlines
Photo Credit: Malaysia Airlines

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