Embraer weighing suitable location for spare parts warehouse in Mideast |
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Embraer, the third largest aircraft manufacturer, is planning to establish a warehouse for spare parts in the region, according to Jose Luis Molina, the vice president for Europe, Africa and the Middle East - airline market.
Speaking at a press conference on Wednesday, he said the warehouse will serve four air carriers which are currently operating Embraer commercial aircraft, including Royal Jordanian Airlines (RJ)Royal Jordanian Airlines (RJ)
, as well as owners of Embraer executive jets in the region.
In addition to RJRJ, Egyptair, Saudia and Nasair are currently operating Embraer aircraft, flying 162 routes.
Regarding the warehouse headquarters in the Middle East, Molina said the company is carefully examining where to locate it. It could be in Amman, Abu Dhabi, Dubai or in any other city, he said, pointing out that Embraer operators in the Middle East region currently have to purchase and transport spare parts from France.
On the advantages of Embraer commercial jets, Molina indicated that in aviation, flying an empty seat is expensive, highlighting Embraer's right sizing and more frequencies philosophy as a means to maximise airlines' profit.
Addressing the press, RJRJ President/CEO Hussein Dabbas said: "We are not out of the slump yet. If conditions improve, Royal Jordanian Airlines will consider the purchase of two Embraer aircraft in the coming two-three years."
"We need to continue to add frequencies. That's why we are examining the acquisition of two Embraer aircraft," he added, pointing that RJRJ has seven Embraer aircraft at present.
Despite the economic slowdown, RJRJ managed to post JD25 million in profit at the end of this year's third quarter, Dabbas indicated.
Underlining the importance of the Middle East aviation market, Embraer's Byron Bolhman said most of the countries in the region have not been affected by the fall out of the global financial crisis, in terms of the growth in gross domestic product in particular.
Most of these countries' economies depend on oil, he elaborated, adding that the Middle East continues to represent a strategic market for the aircraft manufacturing company.
On the increasing need for E-jets, he said these aircraft provide speed, privacy, security and productivity, reiterating that time is money. New orders for executive jets maybe announced during Dubai Airshow, which will be held between November 15 and 19.
Addressing the issue of economic recovery, Bolhman said there is still risk of a W-shaped economy. It seems there is a rebound at present, but it is not certain yet whether it is going to continue like that or there will be another fall, he added. Embraer has been affected by the downturn, he said, noting that the company is in control.
"We are in a good shape in comparison with other big manufacturers," he told The Jordan Times.
© Jordan Times 2009
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