AIRSHOW-Embraer won't halt ERJ-145; inks Oman Air deal

Tue Nov 17, 2009 3:46am EST

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DUBAI Nov 17 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) (ERJ.N) will not halt production of its 50-seat ERJ-145 jet, its chief executive said on Tuesday, adding no decision had been reached on making a larger jet in China.

"We will not discontinue the production," Frederico Fleury Curado, Embraer president and CEO, said at the Dubai Air Show.

Brazilian newspaper O Estado de S. Paulo reported earlier this month the planemaker had decided to abandon manufacturing the ERJ-145. The newspaper also said Embraer would produce its 120-seat E-190 jet in China.

On Tuesday, Embraer's chief said no decision had yet been reached on manufacturing in China. "I would say within the next 6 months or so, we should be deciding on that."

Embraer, the world's largest maker of regional jets, announced on Tuesday it had signed a $177.5 million deal with Oman Air for five 175 aircraft. The value of the deal may double if all options are taken up. The first plane in the 72-seat aircraft series is set to be delivered in 2011.

"We are pleased to have Oman Air as the newest customer of our E-jets family and the first in the Gulf area," Curado said. (Reporting by Tamara Walid; Editing by Dan Lalor)

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