Brazilian plane maker Embraer estimates the population of private jets in Asia to increase three times in the next 10 years on the back of increasing affluence. India, with corporate profitability growing tremendously in the last five years, will make up the bulk of orders in the region.
Embraer is the world’s third largest commercial aircraft manufacturer behind America's Boeing and Europe’s Airbus, but is mostly known for its the short-hop, narrow-body jets that are coveted by the affluent. According to Embraer, in the coming decade, the centre of gravity in aviation will move eastward, most notable to Asia, and to some extent southward, to Latin America, because of strong pace of economic growth and surge of the urban middle class. By 2031, Asia Pacific and China will be the largest market for aviation, accounting for 34% of revenue passenger kilometres (RPK) — the volume of passengers carried by an airline.
Jose Eduardo Costas, vice-president (sales and marketing) for Asia Pacific, said the Asia Pacific region is expected to account for between $32 billion to $48 billion worth of business jets in the next decade, which corresponds to between 1,035 to 1,580 aircraft overall. “Asia currently has 900 private jets, which is just 3% of the total private jet population. We estimate the Asian share will increase to 17% in 10 years,” he said. “India has 165 private jets and Embraer accounts for 18 of these. However, all the new entry level jets in the last five years were Embraer Phenoms,” he added. “In South Asia, we do expect India to make up the bulk of orders as 40% of the executive jets in India are more than 10 years old,” Costas said.
The aircraft firm is hoping that Indian customers follow trends seen in other developing markets, where early adopters “graduate” from smaller to larger aircraft as their needs change and familiarity with the aircraft grows.