Embraer’s Aircraft Are Perfect For Airlines Right Now
Could Embraer aircraft be the solution for airlines looking to break back into the recovering market? The smaller…
Could Embraer aircraft be the solution for airlines looking to break back into the recovering market? The smaller fuel-efficient aircraft are cheaper to operate than bigger Boeing and Airbus planes, easier to fill with passengers, and more readily available.
Why would smaller aircraft be better?
As the aviation industry starts to make plans to resume services across the world, airlines are collectively reexamining their fleet operations. Embraer has stepped in to showcase its product offering, suggesting that its smaller aircraft would be cheaper to operate and suit the recovering market better.
With less demand for air travel, airlines are finding that they have way too much fleet capacity on their hands. They have aircraft that can regularly fly up to 200 passengers (variants such as the Airbus A320 and Boeing 737), yet are struggling to get over 100 passengers onboard.
According to new data published by Crirum, 45% of the aircraft trips in the world are being performed by jet aircraft that seat 70-150 passengers, while only 34% of other flights are performed by bigger narrowbody aircraft. Widebodies achieve the remaining 21%.
Many of these trips are within the range of smaller aircraft (such as European regional flights) and don’t require the range offered by bigger narrowbody, or let alone widebody, aircraft.
Thus the solution might be to acquire some smaller aircraft that are better suited for these lighter operations until demand returns. Aircraft that Embraer has in abundance.
What is the argument for Embraer?
Embraer is one of the world’s leading companies producing aircraft in the 70-150 passenger category, and they are well set up to offer aircraft to airlines until the industry recovers.
“The term “right-sized” has never been more appropriate. There is still a long way to go before we can claim victory over the crises, but, as the headwinds ease, airlines with right-sized aircraft will recover faster and stronger.” – Embraer in a press release
Besides, Embraer aircraft are cheaper to buy and rent, coming in on average 50% less expensive than an A320 or Boeing 737 at list prices.
- Embraer Ejet 190 – $50.6 million (new)
- Boeing 737-800 – $106.1 million (new)
- Airbus A320 – $101 million (new)
Lastly, there is also a substantial second-hand market of Embraer aircraft, with over 1,500 of the type built.
It seems that airlines like Austria Airlines has taken Embraers suggestion, and is relaunching services using Embraer aircraft (as well as Dash 8s).
What about other aircraft?
The only other aircraft that would come close to the specifications listed above would be the Airbus A220. The only issue is that they are far more expensive ($81.3 million at list prices brand new), and there isn’t much, if any, of a second-hand market.
Airlines like airBaltic, who only operate the Airbus A220, are well set to take advantage of this lull in the market. If other airlines want to follow in its footsteps, then they will need to turn to Embraer to lead the way.
What do you think of this news? Let us know in the comments.