China-made airplanes meet Waterloo (Xinhua) Updated: 2006-01-17 20:01
China-made feeder liner ERJ145, the once-promising product in China's
aviation market, now meets Waterloo in the battle to get more orders and faces
the threat to stop production.
Chinese aviation experts said the unexpected result exposes China's soft
spots in feeder line transport and incomplete governmental policies on
developing feeder line transport in the country.
Aviation experts said China is still a market in strong demand for feeder
liners.
China's air transportation is surging rapidly at an annual rate of 18 percent
since 1978, and more than 90 feeder liners have been built in China's
medium-scale cities in recent years, indicating an increasing demand for feeder
liners.
Currently, there are only 74 feeder liners available in China. Statistics
show that in the coming two decades, more than 600 feeder liners will be needed
in China, and the demand from the international feeder line transport market
will exceed 4,000.
To meet the demand, China's State Council decided in
February 2000, to establish a joint venture with the Brazil-based aero-maker
Embraer to produce 30-70 seats feeder liners in China.
In January 2003, the China Aviation Industry Corporation II and the Embraer
made an joint investment of 40 million US dollars for the new Harbin Embraer
aircraft industry Co., and started the making Embraer's star product--the 30-50
seat ERJ145--in China.
According to the contract, aircraft components for the ERJ145 will be
localized in China gradually and try to produce enough airplanes to meet China's
demand in the period between 2006-2010.
Jiang Da, vice general manager of Harbin Embraer, said ERJ145 airplane indeed
had a good start in China with an order of six from the China southern Airlines
and another order of ten from the China Eastern Airlines in 2004.
But in case of losses in the feeder line transport, most Chinese airlines
lowered their interests on feeder line transport in the following year.
Jiang said though the six ERJ145 have been delivered to the China Southern
Airlines, the China Eastern Airlines only bought five of their order by now.
And no more new orders were clinched by Harbin Embraer in China after that,
said Jiang.
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