Market Intelligence: -Airline Aircraft Orders

Aircraft Manufacturer Announces Strongest Orderbook Since 2018

Embraer delivered 32 jets in the second quarter of 2022, 11 commercial and 21 executive (12 light and 9 medium). In the year, the company has delivered a total of 46 aircraft (17 commercial and 29 executive).

The firm order backlog ended 2Q22 at US$ 17.8 billion, the highest level since 2Q18, driven by new sales of aircraft and services, an increase of 12% when compared to the US$ 15.9 billion recorded in the previous year, same period of 2021.

During the period, Embraer welcomed Sky High, from the Dominican Republic, to the E-Jets family of operators, which will operate two first-generation E190 jets. These aircraft will be covered by the Pool Program, whose contract was announced by Embraer Serviços & Apoio.

In June, Embraer signed a firm order to convert up to 10 E-Jets into passenger to freight (P2F) aircraft with an “undisclosed” customer. The aircraft will come from this customer’s current fleet of E-Jets, with deliveries starting in 2024. This is the first firm contract for the conversion of E-Jets, and the second agreement for this type of operation.

In another contract, announced in May, Embraer and Nordic Aviation Capital (NAC) agreed up to 10 conversion positions for the E190F/E195F jets. Also in the second quarter of 2022, Embraer Defense & Security delivered the last modernized AF-1 fighter jet to the Brazilian Navy. And in the executive aviation market, the results confirm Embraer’s solid positioning in the light and medium jet segments, with increasing demand.

Farnborough Airshow (FIA) 2022

Last week, during the Farnborough Airshow, Embraer Commercial Aviation announced the sale of 20 units of the E195-E2 jet to Porter Airlines, Canada, which will be included in the firm order book for the third quarter of 2022. The Canadian airline now has 50 firm orders and 50 purchase rights for the E195-E2 model. At the same event, Embraer announced a firm order from Alaska Air Group for eight E175 jets, which are already part of the 2Q22 order backlog, in addition to 13 purchase rights.

Embraer Services & Support announced a renewal and expansion agreement with LOT Polish Airlines for the Pool Program. The long-term agreement will cover a total of 44 E-Jets. And NAC announced a memorandum of understanding for Astral Aviation, based in Nairobi, Kenya, to carry out the conversion of the first two passenger to freight (P2F) aircraft from the E190F model. Embraer Defense & Security entered into cooperation agreements with BAE Systems through two memoranda of understanding (MoUs) aimed at expanding the companies’ operations in the global defense market. The first is aimed at promoting the C-390 in Middle Eastern markets (initially in the Kingdom of Saudi Arabia) and the other confirms an intention to create a joint venture to develop a defense variant of the electric vertical take-off and landing (eVTOL) vehicle. ) from Eve.

About Embraer

A global aerospace company based in Brazil, Embraer has businesses in Commercial and Executive Aviation, Defense & Security and Agricultural Aviation. The company designs, develops, manufactures and markets aircraft and systems, providing after-sales Service and Support to customers. Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, carrying more than 145 million passengers a year. Embraer is the main manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service centers and parts distribution, among other activities, in the Americas, Africa, Asia and Europe.

Source: Embraer Press Release

Photo Credit – Embraer

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Aircraft Manufacturer Embraer Publishes 20-Year Market Outlook

Embraer has published its 20-year Market Outlook for the sub-150 seat commercial aircraft segment. The report presents global and regional analyses and trends that will influence the demand for new jets and turboprops through 2041.

Embraer officials highlighted key elements of the Market Outlook at a press briefing at the Farnborough Airshow. These included:

Demand Growth and Recovery
Worldwide demand for air travel, measured in revenue passenger kilometers (RPK) will grow 3.2% annually (CAGR) over the next two decades. This is slightly less than the 3.3% rate forecast last year. The weaker growth reflects a near-term deceleration of the global economy, follow-on effects from the pandemic, and the impact of the Russia-Ukraine conflict. RPKs are expected to return to 2019 levels by 2024.

Digitalization and Regionalization
 The trends to increased digitalization (work-from-home, video-conferencing) and regionalization (re-shoring to localize production) that emerged at the onset of the pandemic will continue. These will drive demand for smaller-capacity aircraft.

A Focus on Fleet Flexibility and the Transition to Green Technologies
Matching capacity to demand is the most sustainable way to capture the growth opportunities in the post-pandemic world. New green technologies tend to focus on smaller-capacity aircraft where innovations are refined before introduction on larger platforms. In this context smaller airplanes are a key element for more sustainable air travel while also enhancing connectivity.

E-Commerce & Passenger to Freighter Conversions
 The explosive growth in e-commerce is opening new markets for smaller-capacity all-cargo jet aircraft and driving demand for passenger-to-freighter conversions.

New Aircraft Deliveries – By the Numbers
Global demand for new aircraft up to 150 seats 10,950 units (8,670 jets/2,280 turboprops)

Market value of all new aircraft USD 650 billion

Annual RPK growth rate – ranked by region
 4.3% Asia Pacific (includes China)
4.0% Latin America
3.8% Africa
3.2% Global Average
3.2% Middle East
2.3% Europe
2.0% North America

RPK share by end of 2041
42% Asia Pacific
38% Europe + North America

Jet deliveries – 8,670 (% share)
 2,740 North America ( 31.6%)
2,230 Asia Pacific ( 25.7%)
2,320 Europe & CIS ( 26.8%)
750 Latin America ( 8.7%)
330 Middle East ( 3.8%)
300 Africa ( 3.5%)

Turboprop deliveries – 2,280(% share)
 960 Asia Pacific (42.1%)
500 Europe & CIS (21.9%)
400 North America (17.5%)
200 Africa (8.8%)
180 Latin America (7.9%)
40 Middle East (1.8%)

Check out the complete outlook here.

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Latin American Airline Orders 17 Additional Aircraft to Increase Order Book to 100 Narrow Body Aircraft

LATAM Airlines has ordered 17 A321neo aircraft to further expand their route offering, bringing the airline’s total A320neo order book aircraft to 100. Additionally, the airline has also confirmed to bring in the A321XLR to complement their long haul operations.

“We applaud LATAM’s strategic vision and sustainability ambition. This order for the A321neo on the heels of its restructuring is a strong sign for the value Airbus brings to making this vision and ambition a reality. The A321XLR will enable the opening of new routes and will allow LATAM to increase its international reach in the region” said Christian Scherer, Chief Commercial Officer and Head of Airbus International.

The A321neo is the largest member of Airbus’ A320neo Family, which incorporates new generation engines and Sharklets, delivering more than 20 percent fuel and CO2 savings, as well as a 50 percent noise reduction. The A321XLR version provides a further range extension to 4,700nm, giving the aircraft a flight time of up to 11 hours. Last month, the A321XLR took to the skies for the first time, accomplishing its first test flight successfully.

By the end of June 2022, the A320neo Family had won more than 8,100 orders from over 130 customers, of which nearly 550 have been for the A321XLR. Since its Entry into Service six years ago, Airbus has delivered over 2,300 A320neo Family aircraft, contributing to a 15-million-ton decrease in CO2 production.

LATAM Airlines Group and its affiliates are the main group of airlines in Latin America, with presence in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, in addition to international operations throughout Europe, Oceania, the United States and the Caribbean.

In Latin America and the Caribbean, Airbus has sold over 1,100 aircraft and has a backlog of over 500, with more than 700 in operation throughout the region, representing almost 60 percent market share of the in-service fleet. Since 1994, Airbus has secured approximately 70 percent of net orders in the region.

Source: Airbus Press Release

Photo Credit – Airbus

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Boeing and Middle East Airline Finalize Order for 25 737 MAX Airplanes

Boeing and Qatar Airways finalized an order for 25 737 MAX airplanes, providing the flag carrier’s short- and medium-haul fleet with improved economics, fuel efficiency and sustainable operations. Company leaders announced the order for the 737-10, Boeing’s largest and most efficient single-aisle jet, in a signing ceremony at the Farnborough International Airshow.

“We are honored that Qatar Airways has decided to add Boeing’s single-aisle family to its fleet, deepening our relationship with this world-class airline,” said Stan Deal, Boeing Commercial Airplanes president and CEO. “The 737-10 is ideally suited for Qatar Airways’ regional network and will provide the carrier with the most capable, most fuel-efficient airplane in its class.”

Seating up to 230 passengers with a range of 3,300 nautical miles, the 737-10 is the largest airplane in the 737 MAX family, offering greater fuel efficiency and the best per-seat economics of any single-aisle airplane in the industry. The jet can cover 99% of the world’s single-aisle routes.

In January, Boeing and Qatar Airways announced a Memorandum of Understanding for 737 MAX airplanes at a ceremony in Washington, D.C. In addition, the airline became the global launch customer for the new 777-8 Freighter, with an order for up to 50 freighters.

Qatar Airways operates more than 120 Boeing airplanes including 777 and 787 passenger jets along with 747 and 777 freighters.

A multi-award winning airline, Qatar Airways was announced as the ‘Airline of the Year’ at the 2021 Skytrax World Airline Awards. It was also named ‘World’s Best Business Class’, ‘World’s Best Business Class Airline Lounge’, ‘World’s Best Business Class Airline Seat’, ‘World’s Best Business Class Onboard Catering’ and ‘Best Airline in the Middle East‘. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).

Qatar Airways currently flies to more than 150 destinations worldwide, connecting through its Doha hub, Hamad International Airport, currently named ‘Airport of the Year’ by Skytrax World Airport Awards 2022.

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 Press Release

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