Embraer expects Chinese jet to compete with it in international market as of 2015

30 January 2008

Sao Paulo, Brazil, 30 Jan – The first jet aircraft developed by Chinese companies is expected to go into competition with Brazilian Embraer aircraft as of 2015, an Embraer director told macauhub Tuesday in Sao Paulo.

Luiz Sérgio Chiessi, Embraer’s Market Intelligence director, said that production of the 90-seater ARJ21 700 by Chinese manufacturers, would be focused on the Chinese market, and competition on international markets would only occur in the long term.

“Due to the big demand from the Chinese market, I believe that for a few years after the first delivery, which will take place at the end of 2009, production of the ARJ21 will be almost exclusively for Chinese customers, and competition outside of China will be delayed until 2015,” Chiessi told macauhub.

“There is a great need for aircraft of this capacity in China,” he said and it is possible that “the volume of production of AVIC will not even meet the demand of deliveries needed for Chinese companies.”

At the end of 2007 Embraer had form orders for 764 E-Jet aircraft with a capacity to carry between 30 and 120 passengers, and had delivered over 330 units to 30 customer sin over 20 countries.

“Embraer is the leading manufacturer of commercial aircraft of between 30 and 120 seats and has been an important promoter of this capacity segment amongst the aviation companies of the world. The ARJ21 project is a confirmation of the success of this segment,” said the Market Intelligence director.

He noted the importance of the partnership with China in reaching the mark of delivering their 1000th ERJ 145 aircraft via a joint venture with China’s AVIC II, for the Grand China Express airline, which happened in the third quarter of 2007.

“Very few commercial aviation programs in the world have had enough success to be able to reach the mark reached by the ERJ 145. We are aware that we were able to reach this with the help of our Chinese partners,” Chiessi said.

Since 2002, the Brazilian company has had a joint venture with China’s AVIC II to manufacture 50-seater jets in the city of Harbin, China.

“This partner has already produced and delivered 20 aircraft and has a portfolio of orders for 46 airplanes,“ he said.

Also according to Chiessi, “in the 100-seater segment, Embraer has firm orders for 50 Embraer 190 aircraft from the HNA group, of Hainan, the first of which will be delivered in 2008. (macauhub)