Embraer Releases China Executive Aviation Market Outlook 2014-2023
BEIJING, Sept. 10, 2013 /PRNewswire/ -- Embraer Executive Jets presented its China Executive Aviation Market Outlook 2014-2023 during the press conference held today at the Chinese International Business Aviation Show (CIBAS) 2013, in Beijing, China. The Company forecasts that a total of 805 executive jets will be demanded by the Chinese market over the next decade. The large-cabin business jet class is expected to represent 51% of this demand, accounting for 78% of the total value of deliveries.
"Over the past 12 years, Embraer has built a strong position as one of the top business jet manufacturers, with a full line of state-of-the-art products that meet and exceed the expectations of customers worldwide," said Guan Dongyuan, Senior Vice President of Embraer and President of Embraer China. "Embraer's decade-long investment in China's commercial aviation market has resulted in a fleet of 120 commercial jets in service, and we are now building our presence in the Chinese executive aviation market, affording our executive jet customers the high quality service and support that our airline customers already enjoy."
Embraer maintains a favorable forecast for the Chinese executive aviation market potential, based on comprehensive studies of the country's economic scenario. China's fleet of executive jets has experienced an average annual expansion of 27%, fueled by a 26% growth of the wealthiest population, from 2008 to 2012, according to the data released by Hurun Report, which is considered to be one of the most influential publications of the luxury genre in the country.
In addition, the overall environment calls for the development of executive aviation, in order to meet the demand for direct business and leisure travel, beyond the destination and schedule limitations of the airlines. The Company's market outlook also highlights infrastructure improvements as catalysts to executive aviation growth in China, with the number of Fixed-Base Operators (FBO) expected to increase to nine, up from the current five.
Since 2004, when its first executive jet was delivered to this region, Embraer has booked orders for 38 executive jets in China, including five options. Leveraging its commercial jets service network and facilities, the Company has several Authorized Service Centers for executive jets customers in the Greater China region, offering tailor-made efficient service and support.
Upholding its commitment to the Chinese market, Embraer built an executive jets assembly line in the country. In June 2012, Embraer inked the agreement with Aviation Industry Corporation of China (AVIC) to cooperate on the Legacy 600 and Legacy 650 programs, using the existing infrastructure of their joint venture, Harbin Embraer Aircraft Industry Co. Ltd. (HEAI). In late August, the first Legacy 650 large executive jet assembled by HEAI successfully completed its maiden flight, with delivery scheduled for the end of this year.
For more information about Embraer Executive Jets, see: www.EmbraerExecutiveJets.com.
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Note to Editors
Embraer S.A. (NYSE: ERJ; BM&FBOVESPA: EMBR3) is the world's largest manufacturer of commercial jets up to 120 seats, and one of Brazil's leading exporters. Embraer's headquarters are located in São José dos Campos, São Paulo, and it has offices, industrial operations and customer service facilities in Brazil, China, France, Portugal, Singapore, and the U.S. Founded in 1969, the Company designs, develops, manufactures and sells aircraft and systems for the commercial aviation, executive aviation, and defense and security segments. It also provides after sales support and services to customers worldwide. For more information, please visit www.embraer.com.br.
This document may contain projections, statements and estimates regarding circumstances or events yet to take place. Those projections and estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect Embraer's businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among others: general economic, political and trade conditions in Brazil and in those markets where Embraer does business; expectations on industry trends; the Company's investment plans; its capacity to develop and deliver products on the dates previously agreed upon, and existing and future governmental regulations. The words "believe", "may", "is able", "will be able", "intend", "continue", "anticipate", "expect" and other similar terms are supposed to identify potentialities. Embraer does not feel compelled to publish updates nor to revise any estimates due to new information, future events or any other facts. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not take place. The actual results can therefore differ substantially from those previously published as Embraer expectations.
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