China's HNA Group orders 100 Embraer Jets

Travel News Asia Monday, 4 September 2006

Embraer has confirmed the sale of 50 ERJ 145s and 50 Embraer 190s to HNA Group, the fourth largest airline company in China. The deal marks the first contract involving an E-Jet in mainland China. The total value of the firm aircraft at list prices is US$ 2.7 billion.

Deliveries will commence in September 2007 for the ERJ 145s. The 50-seat ERJ 145s will be produced by the joint venture Harbin Embraer Aircraft Industry (HEAI), in the city of Harbin, China. For the Embraer 190, deliveries are planned to start in December 2007. The 106-seat Embraer 190, to be configured for single class service, will be manufactured at the plant of So Jos dos Campos, Brazil.

We are delighted to make public this deal which confirms the correctness of our vision and Embraer's long-term strategy to become an important player in the Chinese market. The 50 ERJ 145s will help HNA Group build a strong regional aviation network a solid foundation for its growth plans. At the same time, the debut of the Embraer 190 in mainland China is perfect for HNA Groups expansion plans for medium density markets as well as high frequency city-pairs, given the size, excellent performance, passenger comfort and economics of our E-Jets, said Maurcio Botelho, Embraer Chairman, President and CEO.

China and Brazil have joined forces and successfully produced the world-class ERJ 145 family jet aircraft for the Chinese market. The awarding of the order of 50 ERJ 145s by HNA Group will further secure the future success of the joint venture which, in turn, will strengthen the cooperation between China and Brazil in the aviation field. said Mr. Zhang Hongbiao, President of China Aviation Industry Corporation II (AVIC II), Embraers partner in the HEAI joint venture.

The introduction of the ERJ 145 and the Embraer 190 will help improve the current domestic route network by deploying such a mixed fleet on thin routes or to open new markets. This should benefit the economic development of small/medium cities in the West and Northeast regions.

HNA Group is operating the biggest fleet of regional jets in China, said Mr. Chen Feng, Chairman of HNA Group. The acquisition of ERJ 145s and Embraer 190s represents an important validation of our strategy of providing more flexible flights to match the rapidly increasing demand of the domestic market in China.

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