The Editor’s Corner #7: The P2F Market Is Hotting Up…

LONDON – With the recent news from Embraer over the E190F & E195F, it is clear that the P2F (Passenger to Freighter) market is hotting up. Welcome to the latest edition of The Editor’s Corner.

The Editor’s Corner is an op-ed series from AviationSource Editor-in-Chief James Field, who is going to give his thoughts (Maybe controversial) on all things going on in the aviation industry.

In case you have missed the last six, feel free to browse through them before you continue to read this piece:

  1. The Editor’s Corner #1: The Industry Isn’t Ready for Summer 2022 Demand
  2. The Editor’s Corner #2: JetBlue’s Offer for Spirit Airlines Will Change The American Airline Dynamic
  3. The Editor’s Corner #3: Boris Johnson’s Damage To The Aviation Sector is Another Reason for Resignation
  4. The Editor’s Corner #4: PLAY Will Transform The Market with a Post-Pandemic Edge
  5. The Editor’s Corner #5: Detriment of the Boeing 737 MAX & 787 Is Causing a 777X-Based Aftershock
  6. The Editor’s Corner #6: Qantas’ Plans For The Future Will Turn Around Negative Times

James will be starting things off with his next topic being: The P2F Market Is Hotting Up…

The P2F Market Is Hotting Up…

With the recent news from Embraer over the E190F & E195F, it is clear that the P2F (Passenger to Freighter) market is hotting up.

It’s clear this is the case, especially if Embraer are wanting to venture into this area of the industry, as the likes of Boeing & Airbus have done already.

This piece will cover the intensity in business that the P2F market has experienced in recent months, as well as whether Embraer can capitalize on this.

The P2F Market is an Intensified Market…

It is clear that the P2F market is intensifying in 2022. When I look back at the articles that AviationSource has produced on the P2F side of things, it is evident what the strength is:

Nine stories since the start of the year definitely highlight how busy manufacturers of the P2F have been, which is understandable why the likes of Embraer want a piece of this pie.

With Boeing & Airbus already involved in this, it was only a matter of time before Embraer got themselves involved.

Can Embraer Capitalize On This?

Embraer does have an opportunity to capitalize on the P2F market, with the E190 & E195 having potential in regional markets.

It is good timing that Embraer has launched the P2F, especially with the Farnborough Air Show round the corner in July.

This also means that the sale campaign will probably be orientated towards the P2F as well as the E2 jets, which makes them more attractive in the product offerings it will have.

It is unclear whether Embraer will bring the P2F party to Farnborough, but it would make clear sense to do so, as we will probably see some P2F orders from other manufacturers during the airshow.

Is Embraer To Late To The Party on This?

A lot of the articles you see above indicate significant orders from Airbus on the P2F front. Even yesterday, Boeing secured another order from Texel Air regarding the BCF program it has on offer.

With there being orders announced, and the cargo & e-commerce market growing, Embraer has definitely arrived on the scene better late than never.

The deal with NAC that was signed yesterday represents a strong start to its sales campaign, with the hope that this will expand further as the months pass on by.

So with that in mind, Embraer still has the potential to do some damage, particularly on the regional front, which the P2F market is only slightly focusing on at present.

Where Would The E190/195P2F Be Ideal For?

The E190/195P2F could have some good growth in the U.S & Africa in particular, especially when it comes to vital air services that require servicing via cargo.

A lot of carriers in Africa do turn to Embraer jets, so it would make sense to acquire cargo-based variants of the jet.

Even in Europe, the aircraft would do well. For example, FedEx used to operate Manchester-Birmingham-Paris and then beyond using a Boeing 757 Freighter.

It’s flights like this where the E-Jet freighters could come out of the box it has been in recent years and provide such vital links like this.

Overall: Embraer Has Potential For Success, But More Needs To Be Done…

It remains clear that Embraer has made the right choice in entering the P2F market. For it to pay off, however, it needs to generate sales, and Farnborough is the best place to kick things off properly.

The E190/195P2F has great potential to penetrate markets that other manufacturers like Airbus and Boeing may accidentally avoid, and that could work to Embraer’s benefit.

Looking ahead, if Embraer can fine-tune this variant well, it could be in for a larger backlog, looking forward, which would mean that the manufacturer can secure some much-needed revenue in the wake of the global slowdown that has happened over the last few years.

But for now, all we can do is sit back and wait to see how this program goes, and whether they can secure some big business from important carriers.

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