The European crisis has had a cascading effect on every sector including the aviation industry. Citing the monetary crisis in the Eurozone as a risk, Brazilian aircraft manufacturer Embraer, on Thursday said the crisis is likely to affect the demand.
Though the company keeps tabs on corporate profits and traffic evolving in the US and Europe, it sees this as an obstacle.
Having invested about $200 million in customer support services and training centres, Embraer sees India as one of the largest growing markets in the world, after China.
More than 90 per cent of Embraer’s business in the South Asia region comes from India, said Mr Jose Eduardo Costas, vice-president, marketing and sales, Asia-Pacific, Embraer executive jets.
The company has supplied 14 business jets to India out of the total 500 jets it sold across the world. By 2021, it aims to make $10-12 billion in the South Asia region (by supplying 390 to 485 jets) out of the estimated $40-48 billion across the world.
“It is the non-financial sector that has registered remarkable growth. This means quality is being given importance,” added Mr Costas.
Embraer signed a memorandum of understanding with Air Works Indian Engineering Ltd to create a spares repository for all its executive jets in India. The company, which has set up 60 service centres in Asia, is planning to introduce executive jets Legacy 400 and 500 by the end of this year. The company is also mulling the opening of 7 units in India by 2013.
It said that the MoU facilitates housing parts of Embraer’s Phenom 100, Legacy 600 and 650 and Lineage 100 at Air Works’ facility in Bengaluru. This unit will serve as a central hub from where these parts will be dispatched to eight Embraer authorized service centres in the country, the company added.
"The MoU enables Embraer to manufacture all the jets with local support," said Mr Costas.
Speaking to journalists here, Mr Andre Sousa, director, customer support and service, Asia Pacific, Embraer executive jets, said, the MoU reinforces the company's customer support offerings to owners.
Mr. Vivek.N. Gour, managing director, Air Works, said: "Our association with Embraer and setting up a stocking location for its executive jets enhances our service spectrum for Embraer customers in India and more importantly, saves time."
This apart, Embraer's Legacy 650, introduced this year, has been certified by the DGCA. "This is a noteworthy achievement for Embraer because, now, all our products have been certified in India," Mr. Costas said, explaining that actor, Jackie Chan, had bought Legacy 650 recently, after which he was made the brand ambassador of Embraer.
Future plans
The company which has set up 60 service centres in Asia, is planning to introduce executive jets Legacy 400 and 500 by the end of this year. The company is also mulling opening of seven units in India by 2013.