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Embraer sees deferrals, not cancellations, in softer European market
Embraer sees deferrals, not cancellations, in softer European market
Embraer sees deferrals, not cancellations, in softer European market
Embraer has seen a few short-term deferrals—but not cancellations—on deliveries despite the market downturn, according to Embraer president-commercial aviation Paulo Cesar de Souza e Silva. Speaking at a press conference in Paris this week, Silva said that in Europe the company has “a relatively small backlog for delivery of aircraft, but we are not facing any cancellations. However, we are facing some delays.” He described the delays as being intra-month or intra-quarter, but limited to this year and not something that would feed into next year. He stressed, however, that Embraer “is not seeing the same market that we saw in 2011.” He said that “markets in general are more soft,” but acknowledged this was especially the case in Europe “given the crisis.” However, Silva stressed the softening market was not something affecting just Embraer or aviation in general. He acknowledged some concern about the low level of order backlogs, but said the company estimates there about 900 aircraft worldwide in the 61-120 seat market that are now more than 15 years old. In view of escalating fuel prices, Embraer believes there will be a growing need to replace these with more fuel-efficient types. "We are quite bullish on the North American market now,” Silva said. “Over the last six to eight years there have been very few sales to the North American market, so the bulk of our sales in the last few years have been to Europe, Middle East, China and Latin America." Silva said the US airline market had been "in crisis … since 9/11,” but that following the mergers of major US airlines “it is now a more sustainable market. It’s time for the US airlines to invest and modernize and buy new aircraft. We believe that now we are going to sell more in North America and probably less in other markets." North America accounts for 35% of Embraer's order book, followed by Europe (27%), Latin America (17%), China (12%) and Middle East/Africa (9%). The company forecasts that between now and 2030, the potential market for its jets in the 30-120 seat sector could be in excess of 7,200 aircraft worth more than $320 billion.

Поделиться: http://atwonline.com/aircraft-engines-components/news/embraer-sees-deferrals-not-cancellations-softer-european-market-060 Anne Paylor
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