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Brazilian aircraft manufacturer Embraer wants to control at least 50 per cent of China's highly promising regional jet market in the next five years, it has been revealed.
The forecast was made on Friday by Guan Dongyuan, managing director of Embraer's China operations, during a nationwide promotion of the company's latest product, the EMB170.
Embraer anticipates that the new jet will greatly help it tap the domestic market in spite of growing competition.
"Immediate order figures are not our focus, we'd rather view the market in the long term," said Guan, when being asked about his sales expectations for the EMB170 this year.
According to Embraer's estimates, China will demand 230 regional jets with 30 to 60 seats over the next two decades. Demand for 60 to 90-seat aircraft as well as 90 to 110-seat aircraft will both exceed 200 units.
Passenger figures for 2002 show some of the reasons behind the expected growth in demand. About 560 of China's 790 airlines had a daily average of only 36 passengers, but they mainly used 150-seat planes, according to Guan.
In the same year, there were less than 200 passengers daily at 70 of the country's 143 civil airports, resulting in noticeable oversupply.
Such glaring figures have spurred Embraer's desire to quicken its push.
With a price tag of US$25.5 million excluding import taxes, the EMB170 is able to accommodate between 70 to 78 passengers. So far there have been 145 confirmed orders and 150 orders of intent for the plane from airlines worldwide.
Maintaining that the company is in talks with a number of Chinese carriers for the EMB170, Guan, however, said Embraer does not plan to build it locally.
Industry watchers have pointed out that the entry of the EMB170 may become direct competition for China's self-developed regional jet - China Aviation Industry Corp (AVIC) I's ARJ21, which can accommodate 70-plus passengers.
Although there have been 35 orders for the ARJ21, AVIC I's Commercial Aircraft Co Ltd (ACAC), its marketing operator, expects to add some 15 orders this year. The ARJ21's maiden flight will not be until 2006, and its delivery for operation is scheduled for late 2007 or early 2008.


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