Embraer Urges Carriers to Tap Middle East Regional Growth

Embraer has published a report that highlights the “significant opportunities to enhance intra-regional air connectivity across the Middle East.” Titled “Middle East’s Next Frontier: The Untapped Connectivity Potential,” the report focuses on how small narrowbody aircraft such as Embraer’s E-Jets can drive airline growth, profitability, and network resilience in a region that is one of the world’s fastest-growing.

The number of available seat kilometers (ASKs) in the Middle East on intra-regional routes—at 22%—remain much lower than in Europe (52%) and North America (64%). According to the report, instead of adding smaller aircraft to accommodate increased demand, Middle East airlines tend to move to larger narrowbody aircraft in an effort to reduce costs. But this isn’t adding to the regional connectivity capacity. “In fact, the number of origin-and-destination (O&D) city pairs served with direct flights has stagnated over the past 15 years, as large aircraft are not optimally sized for many intra-regional routes.”

According to the report, the solution is to deploy “new-generation small narrowbody aircraft, such as the E-Jets E2 family…” Their advantage is reduced overall trip costs and seat costs that compare favorably with larger aircraft, “enabling airlines to profitably serve thinner routes and expand their networks.”

Middle East Airlines should consider three strategic opportunities, according to Embraer: develop new city pairs, increase frequencies, and right-size for profitability.

“Middle Eastern aviation has achieved global prominence by connecting continents, but the next frontier lies in connecting the region itself,” said Stephan Hannemann, senior v-p for Africa and the Middle East, Embraer Commercial Aviation. “Our report shows that small narrowbody aircraft are the key to unlocking new routes, increasing frequencies, and building a more profitable and resilient regional network.”