Airbus Shows Off Market Share in Latin America and Caribbean

Airbus showcased its aircraft and healthy market share at the FIDAE Air Show in Chile.

Yesterday, Airbus Group SE  highlighted its market share in Latin America and the Caribbean at the FIDAE 2016 air show being held in Chile. The company maintains that it has over 65% of the market share in the region including its to-be delivered aircraft backlog.

The aircraft manufacturer remains confident that it would continue to lead the market even in the future considering its over-600 aircraft in the region. The current news can also be seen as a challenge to its US rival, Boeing Co, which is also competing for market share in this region.

Head of Latin America and Caribbean region, Rafael Alonso, stated in a press release, “The region’s carriers are setting global standards by flying some of the world’s youngest fleets, driven by a highly competitive market.” Mr. Alonso was of the opinion that Brazil represents one-third of the air travel market in Latin America, having doubled since fiscal year 2000.

Considering this healthy growth, the aircraft manufacturer is confident that it has the largest market share in the region, with customers like LATAM Airlines, Azul Linhas Aereas, and Avianca Brasil Airlines operating in Brazil. Apart from these, Airbus has Interjet, Volaris, Aerounion, and VivaAerobus operating in Mexico.

Airbus executives believe there will be a huge demand for aircraft from the region, fueled by a tremendous growth in traffic. Furthermore, the management also believes that Latin America will have nine of the world’s 91 aviation mega cities by the end of fiscal year 2034. The company expects the FIDAE 2016 air show to yield more orders for its jets, further boosting the company’s position relative to Boeing.

Marketing the A350 XWB and A320neo

Airbus focused on its two aircraft in the current news release: the A320neo (new engine option), which is one of its top-selling aircraft, and the A350 XWB, that is currently offered with improved fuel economy. The company already has a handsome backlog of orders for the A320neo, but is suffering from low demand for the A350 commercial aircraft, forcing the aircraft manufacturer to introduce modifications in the aircraft to gain customer interest.

Boeing, on the other hand, has also received handsome orders for its single aisle smaller jets, but not as many as Airbus’ A320 series. The US plane manufacturer scored more orders for its wide body jets during fiscal year 2015, compelling its European rival to push its A350 series.

Airbus conducted successful test flights of its A350 XWB commercial aircraft earlier this week, which will be delivered to Cathay Pacific. Alongside this, the aircraft manufacturer also highlighted that the aircraft was capable of flying an additional 500 nautical miles with its XWB engines, giving airlines possessing this aircraft an edge in a competitive market.