The leadership of aircraft manufacturer Embraer has revealed ongoing efforts to collaborate with Vietnamese airlines in expanding their fleets and developing route networks.
Embraer aircraft at Noi Bai airport. Photo: Embraer.
During the 2024 International Defense Exhibition in Hanoi, Caetano Neto, Vice President of Sales & Business Development for the Middle East and Asia-Pacific at Embraer (the world’s third-largest aircraft manufacturer after Boeing and Airbus), shared with Tri Thuc – Znews that the company is committed to supporting the development of Vietnam’s aerospace and defense industries.
The Brazil-based aircraft manufacturer is particularly focused on projects involving aircraft procurement, crew and ground staff training, and fostering partnerships within the industry.
“Embraer recognizes Vietnam as a strategic market with significant growth potential,” Neto emphasized.
In the commercial aviation sector, Embraer is actively working with Vietnamese airlines to explore solutions for fleet expansion and route network development.
According to Embraer’s market research, 97% of Vietnam’s current fleet comprises large narrow-body and wide-body aircraft, each seating over 180 passengers. However, nearly 50% of domestic and regional flights in Vietnam operate with fewer than 150 passengers on board.
This makes Embraer’s E-Jets series, with a seating capacity of around 150 and a range of up to 6 hours, particularly suited for the Vietnamese market.
“An optimized route network can only be achieved when capacity matches actual demand, as empty seats represent lost revenue potential,” Neto explained. He added that deploying Embraer’s E-Jets provides airlines with the flexibility to expand networks, connect secondary and tertiary cities within Vietnam, and launch international routes from these locations.
As an example, he pointed to Scoot, the low-cost carrier subsidiary of Singapore Airlines, which has operated direct flights from Singapore to Phu Quoc using the Embraer E190-E2 aircraft.
Currently, most Vietnamese airlines rely on narrow-body Airbus aircraft. Bamboo Airways previously operated Embraer aircraft for Con Dao routes but returned the planes during its restructuring phase.
Operating a diverse fleet can lead to higher costs for airlines in areas such as parts inventory, technical training, and operational management.
Addressing these concerns, Neto highlights that one of the core advantages of Embraer’s E-Jets is their ability to lower operating costs compared to larger aircraft. This enables sustainable growth by aligning capacity with actual market demand.
The latest generation of Embraer aircraft, the E2 series, can reduce operating costs by 20% compared to the modern narrow-body aircraft while maintaining most similar per-seat costs.
Globally, many airlines incorporated Embraer’s E-Jets into their fleets, including Japan Airlines, Scoot (a subsidiary of Singapore Airlines), Tianjin Airlines, British Airways, Air France-KLM, and all major airlines in the United States.
“The variety in aircraft types gives these airlines the necessary flexibility to deploy the right aircraft for specific route demands,” Neto concluded.
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Source: Vietnam Insider