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LIFE AFTER SQ006 - Orient Aviation

LIFE AFTER SQ006 - Orient Aviation

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Commuter & Business <strong>Aviation</strong>in the Asia PacificS p e c i a l R e p o r tChina to leadregional jet boomNot too long ago analysts were almostunanimous in their belief that an Asianregional commuter jet was a BoeingB737, an Airbus A320 or somethingeven larger. Now, Asian operatorsare discovering the new breed ofsmall jets and transforming the faceof regional operations, reports TOMBALLANTYNE.Barry Eccleston, executive vicepresidentbusiness development atFairchild Dornier is convinced the regionaljet worm has turned in the Asia-Pacific.The region is on the verge of a big boom insmall jet sales and it will be spearheaded byan emerging Chinese market, he said.Speaking during February’s AustralianInternational Air Show at Avalon, nearMelbourne, Eccleston said China is now oneof the strongest markets in the world for thenew generation of regional jets and airlinersunder 110 seats.Fairchild Dornier forecasts show morethan 700 aircraft – jets and turboprops – inthat size range will ordered by airlines in Chinaand western Pacific Rim nations. Of that total,more than half will be jets in the 50 to 110seat category.“The market for regional jets in Chinais largely untapped, but the requirement isgrowing rapidly. Air carriers in China, like thoseelsewhere, are discovering the new smallerjets make good economic sense for the waythe market is changing,” said Eccleston.It sounds like a brave prediction givenpast frustrations about the pace of airlinedevelopment in China and the generallydismal outcome of previous attempts to sellBarry Eccleston, executive vice-presidentbusiness development at FairchildDornier: China market “untapped”small regional jets like the Fokker into theregional market.But times have changed, he said, andtoday’s jet suppliers – Bombardier andEmbraer as well as Fairchild Dornier – can learnlessons from the Fokker experience.There is plenty of evidence to suggest heis right. After trailing behind Europe and NorthAmerica in the regional small jet stakes, Asiais suddenly catching on.Hainan Airlines became the first airlinein China to operate new generation regionaljets with an order for 19 of Fairchild Dornier’s32-seat 328JET in August 1999. The first wasdelivered in November that year and deliveriesare now complete. But Hainan has sinceturned a series of options into firm orders,taking its total buy to 40.Eccleston is sure there are more ordersto come from other airlines, in China andelsewhere. He believes Australia, India andJapan will also be drivers behind growth inregional jet orders.While Eccleston will not comment publicly,he and his rivals are well aware of strongreports that India’s Jet Airways is unhappywith its fleet of ATR turboprops and is keento replace them with jets.There are even bigger fish to fry; severalof the regional jet makers made it clear theyare talking to Qantas about possible replacementsin its large regional fleet.In the meantime, most of the manufacturersare having some success. Canada’sBombardier has sold its Canadair CRJ-200regional jet to Shandong Airlines in China, JapanAirlines-owned regional J-Air and KendellAirlines in Australia.Based at the capital of ShandongProvince, Jinan, 500 kilometres south ofBeijing, Shandong Airlines last year acquiredfive CRJ200 jets as part of a major expansionprogramme and has since leased anotherfive.Embraer has been successful in Australiaon the turboprop front and has high hopesfor its new 70-seat ERJ 170 jet. Its family ofjets include the 98-seat ERJ 190-100 and the108-passenger ERJ 190-200.Currently 11 Australian regional operatorsfly Embraer turboprop aircraft including AirNorth regional, Flight West Airlines, Skippers<strong>Aviation</strong> and Network <strong>Aviation</strong>. The companyis aiming to achieve a 50% share in theregional commercial jet market.“Australia is a very important marketfor Embraer. It is one of the most importantcountries in the Asia-Pacific region in termsof its economy and quality of air transportoperators and personnel. Its geography isalso conducive to a solid regional commercialaviation industry,” said Luiz Fuchs, the planemaker’schief representative and managingdirector for the Asia-Pacific.March 01 | <strong>Orient</strong> <strong>Aviation</strong> | 41

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