Aircraft

Embraer believes its Chinese joint venture Harbin Embraer is closer to reaching agreement with Hainan Airlines on the remaining 39 ERJ-145s earmarked for subsidiary Grand China Express, but admits that both the order amount and delivery rates are under negotiation.

"I think we're coming closer to a final decision on that," says Embraer executive VP airline market Mauro Kern.

He points out that Embraer is not directly negotiating with Hainan. Rather Harbin Embraer is in talks with the airline, which took delivery of a single ERJ-145 in January after accepting no ERJ-145s during the fourth quarter.

"They have reduced considerably the acceptance of new airplanes," says Kern. As such, production at Harbin Embraer has "slowed down considerably".

Harbin Embraer has a couple of ERJ-145s "almost ready for delivery" to Hainan, says the Embraer executive, noting, however, that an agreement has not yet been reached pertaining to those deliveries.

For months Harbin Embraer has been in talks with Hainan concerning the ERJ-145 delivery schedule to Hainan's Grand China. A total 11 ERJ-145s of an original 50-strong order have already been delivered with 39 remaining.

"We are discussing the delivery rates and the total amounts," says Kern. "All are under negotiation."