Embraer Commercial Aviation has forecast that Asia-Pacific airlines will take delivery of 1,570 new jets in the 70- to 130-seat segment, valued at US$75m, over the next 20 years. This represents 25% of the worldwide demand for the segment. According to the Embraer Market Outlook, the entire market will demand 6,350 new jets in the 70- to 130-seat category, which is valued at $300b. The report stated: “The Asia-Pacific market will become more affluent, competitive, and open, further stimulating airlines to seek system efficiencies, brand differentiation, and improved service levels." Embraer Commercial president and CE Paulo Cesar Silva said, “We are showing to airlines the benefit of moving …from a crowded marketplace and seek out opportunities in markets that are currently underserved, or not served at all". <br/>
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Airbus COO John Leahy said that the A380 remains “the only sensible solution” for a rapidly increasing number of travellers in the Asian region. Singling out Southeast Asia, Leahy said the aircraft is better on fuel consumption, quieter, more environmentally acceptable and more comfortable than alternative solutions when handling large passenger numbers. Leahy said Asian traveling middle classes would push growth of passenger numbers more than any other region, with Asian RPK traffic surging to 36% of the world’s total by 2034 and bringing added airport airspace congestion. “Traffic is set to double, but we can’t just build twice as many airports to handle it,” he said. “The answer is to use bigger aircraft like the A380.” Leahy said Airbus was pursuing a number of “new campaigns” to push sales of the A380. <br/>
The FAA is reviewing a House Republican plan to spin off the nation’s air-traffic control system to a non-profit corporation and hasn’t rejected the idea. FAA administrator Michael Huerta said the Obama administration hasn’t yet reached a decision on the plan that passed the House Transportation and Infrastructure Committee Thursday. Huerta said the administration is “open to having a conversation” on the future of air traffic so long as it promotes safety, enhances development of new technology and guarantees long-term funding. “Clearly there is a lot of controversy around it, and so what we are really looking forward is where there might be opportunities to foster not only a consensus among the airlines but a consensus among all the users of the system and a bipartisan consensus on what’s really best for the industry,” he said. <br/>
The US FAA and the Civil Aviation Authority of Singapore (CAAS) inked a milestone Maintenance Implementation Procedures (MIP) maintenance agreement, which is designed to “strengthen aviation safety while reducing the cost of inspections on repair work,” FAA administrator Michael Huerta said. The agreement is the first of its kind in Asia and will set the standard for future agreements, FAA said. “The agreement builds on the 2004 US-Singapore Bilateral Safety Agreement, which has benefitted both countries by saving time and reducing costs in aircraft design and manufacturing. The MIP will also reduce costs by allowing the reciprocal acceptance of Singapore and the US surveillance of maintenance work,” FAA said. <br/>
Mitsubishi Aircraft has struck a deal to supply 20 regional jets to US leasing firm Aerolease, its first agreement with a lessor. The Japanese firm has struggled with multiple delays in its effort to enter the regional jet market, currently dominated by Bombardier and Embraer. Mitsubishi said the letter of intent signed with Aerolease for the aircraft, worth about US$940m, would be converted into a definitive contract in the next month or so, lifting the number of orders for the Mitsubishi Regional Jet (MRJ) to 233 plus 170 options. The company said it had seen increased interest after its first test flight. Hiromichi Morimoto, president of Mitsubishi Aircraft, said that some potential clients in Asia Pacific had sent in detailed enquiries. Morimoto did not expect further delays in the delivery of its first MRJ, which is scheduled for mid-2018. <br/>