Embraer’s Commercial Aviation enjoyed a record sales year in 2013, securing the sale of about 400 aircraft. At the 2013 Paris Air Show we also successfully launched the company’s new second generation E-Jet family, otherwise known as the E-Jet E2. At the recent Singapore Airshow, we also announced the Air Costa deal for 50 E-Jets E2 and 50 purchase rights. The firm orders of the deal covers 25 E190-E2s and 25 E195-E2s. This takes the running total on the firm E-Jets E2 orders to 200 aircraft, with Skywest ordering 100 E175-E2s and ILFC ordering 25 E190-E2s and 25 E195-E2s.

When we add the 200 options already secured, we show a very strong 400 aircraft already committed. To consider that this has been achieved in just over seven months since its formal launch shows the clear market acceptance and confidence in this all new family. We have achieved more in seven months than some of our competitors have in as many years. The market is voting with its feet and the E2 has the wind at its back.

The growth of the E-Jet customer base, which now stands at 65 operators in 45 countries, is driven by the growing acceptance that right sizing is a key component to the successful revenue management of many airline models. The traditional view of one size fits all, which has been prevalent in Asia over the last decade is shifting, as we see the growth in the region’s middle class. People in Asia-Pacific are no different from any other global traveller — they are looking for speed, comfort and frequency.

The Indian market is clearly changing and Air Costa have adopted a unique business plan, through the right sizing of jet capacity linking the Tier-II and III cities, to maximise this opportunity. At present, these Tier-II and III cities are either under-connected or under-served. According to the recent Indian Aviation 2014 report, compiled by KPMG Advisory Services, in association with the Federation of Indian Chambers of Commerce and Industry (FICCI) launched at the India Aviation event in Hyderabad, there is a large untapped potential for growth in India as access to aviation is still a dream for nearly 99.5 per cent of the population.

As we see the market dynamics shift in favour of right sized jets, point to point connectivity and frequency, we anticipate that the E-Jets, and the new E2, as ordered by Air Costa, will become the core aircraft in this growing market segment.

You only have to try and travel in some of these growing markets in India to see that existing operators and schedules are rarely tailored around the one important element — the demands of the consumer. Schedules are too often infrequent and requiring at least one stop. Point to point traffic is all too rare requiring passengers to accept long stopovers in airports as they seek to find the fastest flight connection.

The vast majority of passengers will seek out the fastest and most direct connection and they are willing to pay a slight premium for the convenience of direct services. They will also vote with their feet when given a choice between a jet and a turboprop. As we see the growth in the empowered consumer, we anticipate, as has been shown in other markets, passengers will increasingly exercise choice where available. The speed and comfort of jets is a universal acceptance and we see a similar trend emerging across India and the region. When one also considers that the economic switch over point to a jet is optimised from about 250 nautical miles and up, you can see the compelling arguments in favour of jets.

We are also proud to see that in just a few months into its operation, Air Costa achieved 100 per cent ontime departures and a load factor of above 80 per cent.

In addition, they have achieved a consistent 100 per cent dispatch reliability since December 2013. This is a result of their diligent approach but it is also a reflection of the important on the ground and after-sales support provided by Embraer. We have our own team in India supporting Air Costa as they grow.

We are confident that the strong combination of the right aircraft, a formidable business plan, Embraer’s benchmark after-sales support and a strong passenger demand will ensure the success of Air Costa for many years to come.