Embraer believe LCC growth is to end, April 1st come early?! |

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Embraer believe LCC growth is to end, April 1st come early?! |
Feb 8 2010, 01:28 PM
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FB Enforcer Group: FB Sponsor Posts: 1,687 Joined: 10-July 06 From: England Member No.: 553 Country: United Kingdom
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QUOTE Embraer Asia Pacific Managing Director, Alex Glock, stated the “golden years” for LCCs ended with the conclusion of the global financial downturn (Reuters, 05-Feb-2010). The number of Asia Pacific LCCs has fallen from 20 to 17 over the past two years, while the number of flights p/a has fallen from 12,034 to 11,956, according to Embraer. Mr Glock forecasts regional demand in Asia will grow at approximately 7% p/a, following a spike in the next two years. And where does Mr. Glock think that growth is going to come from? This has to be one of the most misguided comments of the year so far from an aircraft manufacturer. But what could be behind this? Could it be Embraer's huge frustration at having failed to attract orders from any major LCCs (apart from JetBlue) over the last 10 years or so? As for their JetBlue experience, it has been a bit of a disaster. The ERJ's are just simply not up to the high utilisation rates that LCCs demand and JetBlue have had to have a very very high a/c backup rate for their ERJ fleet, far in excess of their Airbus backup a/c level. Embraer should concentrate on their own strategy, which has to be one or more of: 1) Re-enter the turboprop segment 2) Build a larger RJ to compete with the C-Series, smaller version of the A&B narrowbodies 3) Status quo: Develop the ERJ replacement to be a 'home run' in its class, to address the Russian and Chinese threat in particular -------------------- "To most people, the sky is the limit. To those who love aviation, the sky is home"
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Feb 8 2010, 03:05 PM
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FB Enforcer Group: FB Sponsor Posts: 1,585 Joined: 17-May 07 From: Seattle, WA Member No.: 1,353 Country: United States
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BBD posted their Fiscal Year O&D and they only recorded net sales of 16 Q400s, leaving the backlog at 75, so I am not sure turboprops are a "growth market".
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Feb 9 2010, 01:32 AM
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FB Enforcer Group: FB Sponsor Posts: 1,687 Joined: 10-July 06 From: England Member No.: 553 Country: United Kingdom
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BBD posted their Fiscal Year O&D and they only recorded net sales of 16 Q400s, leaving the backlog at 75, so I am not sure turboprops are a "growth market". That's a bit 'stick in the mud' analysis, isn't it? In a high fuel price environment, turbo props are definitely a growth market and I have no doubt whatsoever they're part of a future that will eventually lead into Open Rotor. Look at the book in turboprop orders from 2005 until now...especially as a percentage of RJs. Dramatic. -------------------- "To most people, the sky is the limit. To those who love aviation, the sky is home"
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Lo-Fi Version | Time is now: 8th September 2010 - 01:28 AM |



