Embraer executive jets will sell in China

A few days to host summit of the BRICs, the tropical island of Hainan in southern China, hosted another meeting of emerging: the 250 richest men in the second world economy were there last weekend.Among millionaires yachts and brands like BMW and Chopard, Embraer signed an agreement for financing of business jets, the latest strategy not to close its factory in the country."Both parties rely on the future of Chinese aviation market," said Kong Linshan, president of Minsheng Financial Leasing, when signing the agreement, along with Embraer's vice president Luis Carlos Affonso.Unable so far to permit China to produce the E-190, for up to 114 passengers, Embraer is now seeking the agreement of the country to produce 600/650 Legacy executive jets.The company estimates that the visit of President Rousseff, next week will be decisive for the plant that remains in Harbin (northeastern China), almost at a standstill for lack of orders to the only model that is authorized to produce.Opened in 2002, the joint venture between Embraer and AVIC 2 state is only allowed to produce the ERJ-145 to 50 passengers, have no market. The last manufacturing unit should be delivered in the first half of this year, sought the company did not say whether the plant is stopped.As China has resisted allowing the construction of the E-190 is supposed to focus on the design of a Chinese aircraft, Embraer has recently proposed the Beijing manufacture business jets.The technical part is easier since the 600/650 Legacy is built on the same platform as the ERJ-135. The problem seems to be little Chinese market for such aircraft."There simply is not enough demand for the Legacy 600 in China to keep an entire production line," says analyst Brendan Sobie, the Center for Aviation Asia and Pacific, based in Australia.Sobie said the lack of infrastructure at airports for business jets is one of the problems. "Another issue is cultural. Unlike regions like the Middle East, people and companies in China do not like to display using jets. "In fact, of 115 Embraer aircraft sold to China since 2000, all commercial aircraft are jet-no. Of these, 41 ERJ-145 are built at the factory in Harbin, which brings together 250 of the 300 employees of Embraer in the country.According to data from Embraer, the company has 60% of the Chinese aircraft up to 120 seats."Maybe one day build Embraer jets in China, but right now the company needs a viable commercial aviation program to maintain its joint venture in Harbin open. The E-190 is really the only alternative, "Sobie said.