Delivery Of Aircraft To Start In June
Embraer is reaching
into the Chinese market aggressively, as evidenced by a recent
On Monday, Harbin Embraer announced the sale of six ERJ 145 jets
to China Southern Airlines. The contract marks the first order
placed by a Chinese airline with Harbin Embraer Aircraft Industry
Co. Ltd. (HEAI), the joint venture between Brazil's Embraer and
China's Harbin Aircraft Industry Co. Ltd. (HAI) and Hafei Aviation
Industry Co. Ltd. (HAFEI), both controlled by China Aviation
Industry Corporation II (AVIC II).
"This initial order rewards Embraer and its Chinese partners'
efforts to expand and strengthen commercial ties with clients based
in this rapidly developing economy," said Mauricio Botelho,
President and Chief Executive Officer (CEO) of Embraer.
"The fact that in such a short time, teams of technicians have
been trained, an assembly line has been implemented, followed by
the rollout of the first ERJ 145 produced in China and the first
order for this aircraft, only reflects Embraer's determination and
commitment to our presence in that country."
Under the agreement with China Southern, deliveries are expected
to start in June of 2004 and stretch until January 2005.
China Southern has been
the largest airline in China for the past 23 years. Currently, it
connects more than 80 cities around the globe and its market share
at home is 38 percent. This deal increases the ERJ 145 fleet in
China to 11 aircraft, adding up to the five airplanes operated by
China Southern-controlled Sichuan Airlines since 2000.
In a recent market outlook report, Embraer pegged total Chinese
demand for regional jets in the 30 to 120-seat range at 635 units
between 2004 and 2023.
The ERJ 145's built in Harbin under license from Embraer feature
the same characteristics of the successful ERJ regional jet family
made in Brazil by Embraer: a modern design that has stood out in
the world market for its operational efficiency, low operating
costs and high levels of safety and comfort. More than 750 aircraft
of this family are in operation worldwide.
As of December 31, 2003 Embraer had a total workforce of 12,941
people, and its firm order backlog totaled US$10.6 billion.