KUALA LUMPUR: Embraer S.A is considering establishing its presence in Malaysia via industrial collaboration to tap on the local aerospace capabilities.
Head of commercial aviation for Asia Pacific Raul Villaron said the Brazilian aerospace conglomerate had recognised Malaysia as an important aerospace hub in Asia Pacific region with industrial capability in the aerospace sector.
"We certainly see the possibility for industrial collaboration. Some suppliers in Malaysia already provide parts for our second generation E-Jet family, the E-Jet E2," he told the New Straits Times in a virtual interview last Friday.
The Embraer E-Jet family is a series of small narrow-body twin-engine jet airliners with a capacity of carrying between 70 and 146 passengers commercially.
A relatively young platform, the first generation E-Jets entered into service in 2004 and the new generation E-Jets E2 entered into service since 2018.
Villaron said Embraer would continue to engage with the local suppliers for potential projects in the future to expanding its footprint locally.
"Asia Pacific is an important and strategic market for Embraer to grow in terms of customer base, customer support and partnerships," he added.
Villaron said Embraer was in talks with the local airlines to promote the company's latest E195-E2 aircraft which entered into service in 2019.
"We have been in discussion with the local airlines for right-sizing their aircraft fleet," he said, declining to comment further.
Villaron said there was a clear understanding that incorporating smaller narrow-body aircraft to existing fleets would be a key to an accelerated airline recovery in Malaysia.
"Even before the pandemic, most airlines had a capacity-demand mismatch on several routes. Hence, we see our aircraft size with capacity between 80 to 146 seats as a good fit for Malaysia," he said.
Villaron said the need for smaller narrow-body aircraft in Malaysia will be sustained for more than a decade, adding that there was a requirement for this aircraft segment before the pandemic.
"If in pre-Covid times there was already a large demand for E2s, the need now is even more evident, with at least 50 units to start with," he said.
Villaron said Embraer had a 30 per cent reduction in aircraft deliveries in 2020 due to deferral and not cancellations, caused by the Covid-19 pandemic.
Despite the pandemic challenges, Embraer had reached some important milestones, including the delivery of KLM's 50th E-Jet, the first E195-E2, highlighting the importance of right-sized jets.
Embraer Commercial Aviation's 10-year market outlook released in December 2020 predicted a global demand of 5,500 new aircraft in the segment under 150 seats (jets and turboprops).
Of the total, 30 per cent or 1,710 units is forecast to be delivered in Asia Pacific including China.
As of November 2020, 90 per cent of E-Jet fleet had returned to service in Asia Pacific.