Brazilian plane-maker Embraer sees a ‘huge opportunity’ in the Asia-Pacific aviation market

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Embraer will likely have a “huge opportunity” in the Asia-Pacific aviation market in the coming years, according to the president and CEO of the Brazilian plane-maker’s commercial aviation division.

That would come largely as airlines seek to service routes beyond major cosmopolitan areas that have previously fueled “explosive growth” in the Asia-Pacific region over the last few decades, Embraer’s John Slattery told CNBC’s “Squawk Box” on Monday.

“For airlines to start serving the secondary, tertiary and fourth-tier markets with frequency, they cannot do that with (Boeing) 737s and (Airbus) A320s because the trip cost is too high,” Slattery said, in reference to popular models by its American and European peers. “They have to right-size their aircraft.”

This, he said, will require a business model that will “run in parallel” to the incumbent strategy of airlines across the spectrum, from low cost to network carriers.

“Over the course of the next 20 years, almost 3,000 aircraft are going to be delivered in this region below 150 seats,” Slattery said.

“We own 35% of the market share today, at Embraer, we’re the market share leader (of planes) below 150 seats,” he said. “We want our fair share of that wallet size of the opportunity going forward.”

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