The Hindu Business Line : `Market will open up for regional jet makers'

Most airlines focus on metro routes. But, as there is further consolidation, there will be need for regional jets on secondary routes. — Mr J. Bruce Peddle, MD, Asia-Pacific), Embraer

The Brazilian aircraft manufacturer, Embraer, is bullish on the prospects in the Indian market. The Company's Managing Director, Asia-Pacific, Mr J. Bruce Peddle, who was in New Delhi recently for an aviation conference, outlined to Business Line his thoughts on the Indian market.

Excerpts from the interview:

What kind of demand does Embraer see for aircraft in India?

Our forecast is that between 2006 and 2025, the demand for 30-120-seater planes in India would be around 165, which is about 40 per cent of the demand of the Asia-Pacific region.

The value of these aircraft would be around $4 billion. We feel that a majority of the aircraft required will be in the 61-120-seat capacity segment. We believe that 70 per cent of these would be required for market growth while there would be a small demand for replacement.

Jet Airways had earlier entered into a commercial agreement to purchase 10 Embraer aircraft. The aircraft are yet to join the airline fleet. What is the status of the project?

Today, there is no transaction with Jet Airways. We are still in dialogue with them. We hope that their plans will also include some regional jets.

Are you in talks with other players in the Indian market for purchase of Embraer aircraft?

We have been in dialogue with all the airlines. At the moment only Paramount Airways is operating our aircraft. Right now, it would seem that the focus of most of the airlines is on being competitive on the metro routes. But as there is further consolidation, there will be need for regional jets on secondary routes.

Our studies show that almost 80 per cent of the flights depart with less than 80 passengers on board. Depending on how the consolidation takes places, we feel that in the next two-three years, the market will open up for regional jet manufacturers.

Would you look at setting up infrastructure in India?

Product support is a big issue. We recognise that pilots and technicians are an issue. We are focussed on developing infrastructure primarily in the Asia-Pacific region. We would need to have an order size of 25-30 aircraft to set up infrastructure here. We probably will not set up a Maintenance Repair and Overhaul centre but may look at establishing a training or aircraft support centre.