China's Hebei Airlines to Expand its E-jets Fleet With 5 More Embraer 190s

China’s Hebei Airlines acquired five more EMBRAER 190s jets to join its E-Jets fleet by the end of 2013, as announced by Embraer. today, during the 2012 Farnborough International Airshow. The total value of the deal, at list price, is USD 226 million. The order has been registered in the Company’s backlog for the second quarter of the year.

“The approval by the Chinese government for Hebei Airlines to aquire five more E190s indicates their confidence in the E-Jets’ performance and the jets’ contribution to the development of China’s aviation industry,” said Paulo Cesar Silva, Embraer President, Commercial Aviation. “The E-Jets are market leaders in its segment in China and recognized for their versatility and passenger appeal, and will help Hebei Airlines to expand its network by exploring new markets and adding frequencies on existing routes.”

Based in Shijiazhuang, China’s Hebei Province, Hebei Airlines currently has two E190s in service, covering eight destinations with around 70 flights per week. The two jets have maintained healthy operations since their revenue service began in January 2012, with an average schedule reliability of 99.5% and 100% completion rate, while the daily utilization hours keep increasing.

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“It is exciting to have the government’s approval for five more E190s. The two jets in operation have maintained exceptional performance. The approval demonstrates the recognition by the authorities in Hebei Airlines for its contribution to the development of the Hebei Province aviation industry and economy. Expanding the E-Jets fleet fits into our marketing strategy, and we have the confidence that the right sized E190s with their outstanding economic performance will contribute to the company’s development,” said Luo Zhanling, Vice Chairman & CEO of Hebei Aviation Investment Group.

To date, Embraer has over 60 E190s in service in China since the jet entered this market in 2008. The Company forecasts that 1005 jets up to 120 seats will be demanded in the Chinese market in the next 20 years.

The E190 is the third of four members of Embraer’s E-Jets family. The jet’s 2,400 nautical mile (4,450 kilometer) range gives the 100-seat airplane tremendous flexibility to operate on city pairs with over 5.5 hours flight time. Since the first E-Jet went into revenue service in 2004, to date, the E-Jets family has around 850 aircraft in operation by 61 airlines in 42 countries, worldwide, helping airlines to right size their fleets, to replace older and inefficient aircraft, and to develop new markets with lower operating costs.

Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Jul 9, 2012