'Over 9,000 jets to be absorbed in market in 10 years'

Embraer SA, world's largest manufacturer of commercial jets, has forecast that about 9,250 executive or private jets valued at $250 billion will be absorbed in the market in the next 10 years.

However, the market recovery is still slow and European market is still volatile showing its effect on emerging markets including India, said Jose Eduardo Coastas, senior vice president (market intelligence).

"We expect the market to absorb 9,250 private jets globally comprising about USD 250 billion. If you look at the last 10 years the market has been of about 8,500 jets. So you see a relative growth in next 10 years when compared to last 10 years," Coastas said on the sidelines of India Aviation- 2014.

He said North America will be an important market, driving almost 50 per cent of this demand and Asia pacific may see around 20 per cent of this demand in terms revenues and 17 per cent in terms of the total number of planes.

"On the not so good side, of course, is to see the good inventory and pre-owned inventory put pressure on new airplanes. We still see some volatility in the European markets and eventual risk on emerging markets like India and Brazil and other emerging markets as well," he said.

According to him, although the market recovery is slow the good sign is that the US corporate' profits have been at greater levels which is a key indicator for good recovery for jet industry as about two thirds of the world fleet of jest are in that country.

The Brazilian aircraft maker has delivered 20 jets to India in the past six years.

Image: Embraer Jets; Photograph courtesy: www1.embraer.com