The global, full-service Kroll Bond Rating Agency just published an excellent assessment of the regional aircraft market. The report, co-authored by Marjan Riggi, KBRA’s Senior Managing Director and Global Head of Aviation, explains why smaller aircraft will lead commercial aviation’s recovery and why they will fare better than larger jets in the near and medium terms.
The KBRA analysis identifies similar fleet and demand trends that are presented in Embraer’s Market Outlook 2020. These include passenger expectations, working from remote locations, and the need for aircraft with greater efficiency and sustainability. As a bond rating agency, KBRA focuses on the factors that determine aircraft values and what is driving the numbers as the industry navigates the global pandemic.
KBRA’s report cites:
. regional growth led by domestic demand due to international border restrictions
. the emergence of a global middle class
. stronger leisure versus business travel
. conversion of passenger aircraft to freighters
. the need for fleet rightsizing
. the implications of retiring of older, larger aircraft
. the after-market for regional aircraft
. the role of regional aircraft in building connectivity in new markets
The KBRA study also gives a good overview the OEM competitor landscape and the impact pilot scope clauses in the USA have on future regional aircraft demand.
Read the complete report here: