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Chinese airlines to buy 35 Embraer planes

12 april 2011, 16:42
0
RIA Novosti©
RIA Novosti©
Brazilian aircraft manufacturer Embraer will sell 35 E190 planes to two Chinese airlines in a deal to be signed during President Dilma Rousseff's visit to China, AFP reports citing Brazilian officials.

Rousseff was due to meet her Chinese counterpart Hu Jintao on Tuesday, and the deal -- which, based on the plane list price of $40 million, would be worth $1.4 billion -- was expected to be made public at that time, they said.

Under the agreement, state-owned giant China Southern and Hebei Airlines, a regional carrier based in the north of the country, will purchase 20 and 15 E190 planes, respectively. The aircraft can seat 98 to 114 people.

Embraer is also due to sign an agreement with state-owned Aviation Industry Corporation of China (AVIC) to manufacture the firm's Legacy 600 business jet in the Asian nation, the officials said.

China Southern, the country's biggest carrier by fleet size, has been operating ERJ 145 Embraer jets on regional routes since 2004.

With more than 17,000 employees, Embraer is the third largest airplane manufacturer behind global giants Boeing and Airbus. Around 80 of its planes are currently in operation in China's lucrative aviation market.

Rousseff, on her first major foreign trip since taking office in January, on Tuesday suggested a new model for trade ties between the two countries based on technological cooperation and the exchange of high value-added products.

China has in recent years become Brazil's largest trading partner, overtaking the United States, and in 2010 was the largest investor in the South American nation.

Brazil, which mainly exports soybeans, iron ore and oil to China, is seeking to diversify the range of products it sells to Beijing.

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