Mandarin Airlines will sign Agreements with Embraer (Empresa Brasileira de Aeronautica S.A.), GECAS (GE Commercial Aviation Services) and GE Engine Service respectively 11 July, 2006 to conclude their aircraft replacement project. According to the Agreements Mandarin Airlines will lease from GECAS three ERJ-190 and five ERJ-195 aircraft, equipped with GE engines. Delivery of these aircraft will start from Apr 2007 till Jul 2009. Mandarin Airlines is planning to use these aircraft to replace their Fokker 50's and Fokker 100's. After the aircraft replacement is accomplished in 2009, Mandarin Airlines will be operating a youngest and most technologically advanced fleet in this region.

　　Members of Mandarin Airlines' Fleet Project Team have spent one and a half year assessing many short-to-medium range aircraft, studying a lot of information collected from various sources in this regard. They have made a prudent decision to introduce ERJ 190 (configured with 104 seats) and ERJ 195 (with 116 seats) for their domestic and regional services.

　　ERJ 190 and ERJ 195, both equipped with GE-CF34 engines with thrust of 18500 lbs, are almost identical except that ERJ 195 is about 8 feet longer than ERJ190 and therefore can accommodate more passengers. Flight crew and maintenance people use common type rating or certificate to work on either aircraft. Thus Mandarin Airlines may not only save a lot of money on training and spare parts investment, but also enjoy more flexibility in flight crew scheduling. ERJ190 and ERJ195 may fly non-stop for about 4.5 hours with a range of 2300NM and 2100NM respectively.

　　Embraer has adopted the most advanced technology in design of the ERJ190/195 to make the aircraft cost-effective to operate and maintain. Modular design for all their avionic systems, including flight control, navigation and communication systems etc. significantly simplifying the maintenance jobs. The double-bubble fuselage design creates unprecedented cabin and cargo spaciousness among aircraft in the category and will surely enhance passenger comfort.

　　Mandarin Airlines, after some in-depth assessments and lengthy internal discussions, has reached the conclusion that ERJ190/195 will be the most suitable aircraft for its short-to-medium haul services in the regional market to cope with the harsh competition ahead.

　　Embraer got a big order from Continental Express, a subsidiary of Continental Airlines, for hundreds of ERJ 145/135 soon after the aircraft was introduced to the market in 1996. Then other members of the E-Jets family, ERJ 170, ERJ 190, were developed and got good response from many regional carriers. JetBlue, an American low-cost carrier, has placed an order with Embraer for 100 ERJ 190. Air Canada ordered 60 ERJ 175/190. Other major customers of the E-Jets include Swiss International Airlines and Alitalia etc. The total order for ERJ 170 and ERJ190 aircraft received by Embraer has amounted to 460.

　　Based on its nine-decade's experience in manufacturing aircraft engines, GE Aviation Group developed the CF34 series engines in 1990s to power the new-generation regional jet aircraft. The CF34 series engines, which prove to be very fuel-efficient and cost-effective, have enjoyed good reputation and response from their users. The Engine Maintenance Support Agreement to be singed between Mandarin Airlines and GE Aviation Group will ensure the smooth operation of Mandarin Airlines' ERJ aircraft.

　　According to the Lease Agreement to be signed between Mandarin Airlines and GECAS, Mandarin Airlines will take delivery of three ERJ 190 aircraft in second quarter of 2007 and five ERJ 195 during the period from April 2008 to July 2009. Mandarin Airlines is the first carrier in Taiwan to use the E-Jets manufactured by Embraer.

A Brief Introduction of EMBRAER

Embraer, the Empresa Brasileira de Aeronautica S.A headquartered in Sao Jose dos Campos, Sao Paulo, is a Brazilian aircraft manufacturer. The company produces commercial, military, and corporate airplanes. It was Brazil's largest exporter from 1999 to 2001 and is one of the three main exporters in Brazil. Among aircraft manufacturers, it currently has the fourth largest workforce (behind Boeing, Airbus and Bombardier), and the third largest yearly delivery of commercial airplanes (behind Boeing and Airbus).

Embraer was created by the Ministry of Aeronautics on July 29, 1969. Soon after its establishment, Embraer began to build EMB 100 Bandeirante aircraft, former IPD-6504 developed by IPD-Instituto de Pesquisas Desenvolvimento. The three first series version Bandeirante, named EMB 110, were delivered in February, 1973 to the Brazilian Air Force. In the same month, Transbrasil bought the first commercial Bandeirante, which made its debut on April 16, 1973. Exports began in 1975, and the Bandeirante proved to be a huge success in the international aviation market, upstaging other aircraft of its category in performance. About 500 Bandeirante were sold, for 36 countries.

By request of the Ministry of Aeronautics, Embraer developed its first combat aircraft, the EMB 312 Tucano, which made its inaugural flight on December 16, 1980. This airplane became the most successful turboprop military trainer ever built, with more than 650 units sold around the world.

The development of a regional airliner able to replace the Bandeirante started in the end of the 1970s. This project took the form of a turboprop able to carry 30-40 passengers, the EMB 120 Brasilia, which was certified in May 1985 with 350 units sold till the production was ended in 2002.

By the end of the 1980s, government investments on the aerospace industry were largely reduced. Combined that factor with the crisis in the aviation segment caused by the oil price increase of 1990, Embraer slid into a deep financial crisis and began to shrink its scale and focus on a new project - a Turbofan regional airliner for 45 passengers, the ERJ 145, which proved to be a big success.

On December 7, 1994, Embraer was privatized. Partnerships with other companies such as Parker Hannifin, Allison Engine Company, and Honeywell ensured enough investments to the development of the ERJ 145. The outstanding sales of the new regional jet allowed Embraer to finally recover and regain its position as one of the world's most important aircraft manufacturers. More than 900 ERJ 145 and aircraft based on the ERJ 145 platform (ERJ 135, ERJ 140, Legacy, 145 AEW&C, 145 RS/AGS and P-99) were delivered until early 2006.

Today, Embraer enjoys its success in the 70-110 seat market with the E-Jets Series, and attempts to expand its presence in the Business jets category with an array of jets of varying sizes. By focusing on specific market segments, Embraer has avoided head-on competition with Boeing and Airbus in long-haul aircraft market and successfully established its outstanding position in the regional aircraft market.

From Left to Right ： Mandarin Airline president / Harris H.Y.Wang The Executive Vice President of EMBRAER/ Mr.Federico Curado Mandarin Airline Chairman / Michael Lo GE Aviation General Manager, Asia-Pacific / Mr.Chaker Chahrour The Senior Vice President of GECAS/ Mr.Clem McCloskey