Harbin Embraer receives order for 5 aircraft from China Eastern

19 January 2006

São José dos Campos, Brazil, 19 Jan – Harbin Embraer, a joint-venture of the Brazilian aeronautical company in China has received an order from China Eastern Airlines for 5 50-seater ERJ145 jet airplanes, the company said Wednesday at it headquarters in São José dos Campos, Brazil.

The aircraft are due to be delivered between November 2006 and June 2007 and the deal will add 5 aircraft to the 5 of the same model already bought by China Eastern Airlines Jiangsu.

Harbin Embraer is a joint venture set up between Embraer and the China Aviation Industry Corporation II (AVIC II) in 2002. It has 180 employees and its factory has the capacity to produce up to 24 50-seater jets per year.

The announcement of the sale of 5 aircraft to a Chinese company occurred on a day when market rumors said Harbin Embraer was due to close down due to low sale sin China.

“The Chinese-built ERJ145 airplane, which had been the promise of the aviation market in China, has met its Waterloos in the battle for new orders and may have to end production,” said an analysis published by official Chinese news agency New China.

Embraer has forecast demand for 590 new jet airplanes from 30 to 120 seats in China over the next 20 years, which would represent 7 percent of world deliveries in the segment.

There are currently 18 Embraer jets operating in China, including 14 ERJ 145 airplanes, three Embraer 170 and one Legacy 600 executive jet.

In Portugal, Embraer, via its subsidiary OGMA – Indústria Aeronáutica de Portugal, may acquire a majority share of components manufacturer Listral, Portuguese daily Público reported Wednesday.

According to the paper, OGMA, an engineering and maintenance company whose privatization was won by Embraer at the end of 2004, has an agreement with API Capital, which makes it possible for Embraer to buy the 25 percent the investment company owns in Listral. (macauhub)