Embraer struggles in China
Embraer’s CEO Frederico Curado has said that the company is finding new business in China tough to come by, as the country’s anti-corruption drive continues.
In an interview with the UK’s Financial Times website, Curado said that the slow down in business has been sudden and sharp.
Chinese premier Li Keqiang introduced an anti-corruption drive in November 2013 that has largely been blamed for the collapse of the Chinese charter market.
Keqiang’s anti-corruption and austerity measures has meant that government officials have steered away from chartering aircraft, with top officials from both government and industry fearing a backlash against using private jets.
As well as the charter market, sales of new and used aircraft have also been hit. Data from AMSTAT received in June showed that 10-percent of the Chinese fleet of business jets were being actively marketed for sale or lease, a rise of 6-percent from 2013.
In June this year attendees at the Corporate Jet Investor Asia conference learnt that 42 of 46 Chinese charter companies were losing money.