Hainan Group Cuts ERJ 145 Order in Half

 - May 4, 2009, 12:31 PM

Harbin Embraer Aircraft Industry Company (HEAI) has reached an agreement with HNA Group, owner of Hainan Airlines, to reduce the original firm order for 50 ERJ 145s to Hainan subsidiary Grand China Express from 50 to 25 airplanes. As of April 30, HEAI had delivered a total of 12 ERJ 145 jets to Grand China under the terms of the original contact, signed in August 2006. According to the new agreement, the balance of the deliveries will occur by the first half of 2011, rather than the end of 2010.

A joint venture created in 2003 by Embraer and China’s Harbin Aircraft to produce ERJ 145s for the Chinese market, HEAI now carries a total backlog of 13 airplanes. It delivered just one airplane in the first quarter of this year and, under the terms of the revised agreement with Hainan, will deliver less than one ERJ 145 per month to Grand China. Embraer’s order books show no further firm commitments for the 50-seat jet. However, the manufacturer hasn’t reported cancellations of any of the fifty 100-seat E190s HNA ordered in 2006. As of last month Grand China had taken delivery of 10 of those airplanes.