China's first domestically-made turbofan regional jet, ERJ145, made its maiden flight yesterday in Harbin, capital of Northeast China's Heilongjiang Province.

China's first home-made regional jet ERJ145 is seen in this undated file photo. [Xinhua]

The 50-seat ERJ145 jet was produced by Harbin Embraer Aircraft Industry Company Ltd, a joint venture between Brazilian aircraft manufacturer Embraer and China Aviation Industry Corporation II (AVIC II).

The joint venture, with an equity investment of US$25 million, is 51 per cent owned by Embraer and its plant is capable of producing 24 ERJ regional jets a year, according to Zhang Yanzhong, president of AVIC II.

Mauricio Botelho, president and CEO of Embraer, said the successful maiden flight suggests this advanced regional jet will soon enter the Chinese market.

The General Administration of Civil Aviation of China predicted that during the 10th Five-Year Plan period (2001-05) carriers in China will be looking for 110 to 140 regional jets, that is, aircraft with 50 to 110 seats and a range of 600 to 1,200 kilometres, .

Regional jet transport will become a new growth area for the country's civil aviation industry, the administration said.

Zhang said domestically made small aircraft are expected to handle 70 per cent of all regional flights within two decades.

"The vast market demand is bringing enormous opportunities for Chinese aircraft companies,'' he said.

The experience of foreign countries suggests that no aircraft manufacturer could survive depending only on the domestic market.

China's aviation manufacturing industry will also try to explore the international market for China-made small aircraft in the future, he said.

Zhang Hongbiao, vice-minister of the State Commission of Science, Technology and Industry for National Defence, said earlier that with a population of more than 1.2 billion people, China needs to build up its own aircraft manufacturing industry.

China will continue to give top priority to research and development of the regional aircraft industry in the coming decades, Zhang said.

Production of regional airliners is the nation's best bet as the domestic aviation industry currently lacks the capability to produce larger planes in a competitive way.

"We do not have the economic power or market share to be able to compete with aviation giants such as Boeing and Airbus,'' the vice-minister said.

The State has already announced a series of plans to create favourable conditions for the use of regional airliners, he said.

A number of new airports are also to be built and existing ones upgraded in the coming decades, reliable sources said.

Meanwhile, airport construction fees for regional aircraft have already been cut to 10 yuan (US$1.20) from 50 yuan (US$6) per passenger.

"This first Embraer aircraft manufactured outside Brazil is an indicator of Embraer's long-term commitment to the Chinese aviation industry,'' Botelho said.

Experts noted that the current reform and consolidation in the Chinese airline industry will lay a solid foundation for the development of an efficient network of air routes in the country.

They believe the central government's decision to develop the western regions of the country and the success of Beijing's bid to host the 2008 Olympics will open opportunities for the rapid expansion of the regional aviation market.

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