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Embraer's aviation dreams take wings

By BAI PING (China Daily) Updated: 2015-07-31 08:02

Embraer's aviation dreams take wings

Guan Dongyuan, senior vice-president of Embraer and president of Embraer China. [Photo/China Daily] 

Fast response to market demand key to business, says its China chief executive

Amid a slowing Chinese economy and the ongoing austerity campaign, Brazilian aircraft manufacturer Embraer SA that provides commercial and executive jets has shown resilience to adapt to the new local realities.

The company has till date delivered 28 executive jets to Chinese enterprises and individual owners. Among the company's new firm orders is one for a mid-sized Legacy 500 that is scheduled to be delivered to actor Jackie Chan by the end of this year.

As a leading manufacturer of commercial jets that can seat up to 130 passengers, Embraer, which is celebrating its 15th anniversary of entering China markets, also has big ambitions for the nation's regional aviation business.

It has delivered 126 commercial jets to China, extending its coverage of the regional aviation market to 80 percent. The latest deal was a contract for 17 E190s with Colorful Guizhou Airlines, which included 7 firm orders and 10 options with an estimated value of $834 million if all options are exercised.

Guan Dongyuan, senior vice-president of Embraer and president of Embraer China, has been in charge of the Brazilian aircraft manufacturer's business in China since 2000 when it opened a representative office in Beijing. Recently, he spoke with China Daily about the opportunities and challenges for a multinational in an ever-changing business environment. The following are edited excerpts of the interview.

Has your business been affected by the ongoing anti-corruption campaign and the transition to the "new normal"?

The anti-corruption campaign had some impact on business jet sales due to the public misunderstanding toward executive jets and treating them as a symbol of luxury. But Embraer is confident about China being the global leader in executive aviation in the coming decade.

Embraer forecasts that a total of 835 executive jets valued at $33 billion will be delivered to China by 2024. The number represents 9 percent of the global executive jet deliveries, or 13 percent in total value.

Chinese customers are also becoming increasingly aware of the commercial benefits that the executive jets can bring. This is especially so, as the globalization of business requires more convenient air transport for senior executives to maximize their time efficiency.

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