Make in India – Embraer makes a move

Take a read of the story here.  Embraer is talking with the Indian government and conglomerates about setting up a FAL in India.

We opined on this idea in February this year.

The certainty of any or all three big OEMs putting up a FAL in India looks straightforward. India’s commercial aircraft order levels warrant this. Moreover, the experience with the GTF in India suggests that engine OEMs might also consider similar investments. Indian aviation growth warrants this attention: a big market and a deep talent pool supported by rapid air travel growth.

Airbus has extensive Indian involvement, Boeing is equally involved, and Embraer has a toehold.

What is interesting now is that Embraer publicly talks about doing something more extensive.  If the cornerstone turns out to be the C-390, that’s fine.  India’s need for regional aircraft is obvious.  As its air travel market matures, we should expect this market to behave more like other mature air travel markets.

Here is our Indian domestic air travel model. The trends speak for themselves.

The key metrics are traffic growth and load factor.  Unsurprisingly, the market leader, Indigo, is moving to the A321.  Air India has also switched up to this model.  Akasa has orders for MAX 8-200 and MAX10.

India deserves this level of attention.  It is suitable for Embraer to move on the opportunity.

Addison Schonland

Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.

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