Embraer expects drop in ERJ-145 backlog

By Mary Kirby

Embraer's ERJ-145 backlog could be reduced by as much as 29 aircraft when discussions between its Chinese joint venture Harbin Embraer and customer Hainan Airlines come to a close.

For several months Harbin Embraer - which produces the ERJ-145 - has been in talks with Hainan concerning ERJ-145 deliveries to the carrier's subsidiary Grand China Express.

A total 11 ERJ-145s of an original 50-strong order have already been delivered with 39 remaining.

Discussions between Harbin Embraer and Hainan are continuing. However, Embraer expects that the backlog "will be reduced to something like 10 to 15 airplanes", the firm said during an investors call today.

"This negotiation will likely take us down [with respect to] the remaining ERJ-145 backlog in China."

The impact on Harbin Embraer's production is not immediately clear. In February, Embraer said Harbin Embraer had a couple of ERJ-145s "almost ready for delivery".

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