Brazil-based Embraer, one of the world's two major regional-plane producers, yesterday in Shanghai debuted its latest product the EMB170 to local airlines to find its first Chinese buyer.

The regional jet, which is able to seat between 70 and 78 passengers, has so far received 245 firm orders from airlines worldwide.

"We believe there is potential in China's regional air carrier market, because many of China's short air services and small airports are now served by bigger planes, while small jets could help them raise efficiency and increase frequencies," said Embraer's China Managing Director Guan Dongyuan at yesterday's jet display.

While its joint venture in China's northeastern city of Harbin, which produces smaller ERJ145 models, will start to deliver the first plane to China Southern Airlines Co Ltd in June, it's in talks with more Chinese carriers to sell the 50-seat regional plane.

Guan revealed that the firm will be able to produce two planes a month in about one year.

The ERJ145 planes target different markets from China's self-developed regional jet - China Aviation Industry Corp I's ARJ21. But the new EMB170 planes may go into direct competition with the ARJ21, which is also able to hold more than 70 passengers. ARJ21 has received 35 orders and plans to deliver in 2007.

"But the country will need a number of regional planes to serve its domestic tourist resorts and air traffic between middle and small-size cities, so there could be enough room for them to sell planes," said an official with Shanghai Airlines Co Ltd.

China will need 635 regional jets seating between 30 and 110 passengers in the upcoming 20 years, according to a previous forecast done by Embraer.

| China Travel Update |