The first two regional jets made in China were delivered Monday to China Southern Airlines in Harbin, capital of northeast China's Heilongjiang Province.

The two jets are part of an order of six ERJ145 planes that China Southern agreed to purchase earlier this year.

The remainder of the jets will be delivered before the end of January next year.

Hao Jianhua, vice-president of China Southern, said the delivery of the two ERJ145 jets would further expand the flight service network and operating capacity of his company.

"The two jets will be used to fly 16 regional routes from Guangzhou, capital of South China's Guangdong Province, from July 1," he said.

One of the largest airlines in China, China Southern owns more than 180 aircraft.

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

The joint venture, which involves equity investment of US$25 million, is 51 per cent owned by Embraer and capable of producing up to 24 regional jets of the ERJ family a year.

Xu Zhanbin, vice-president of AVIC II, said the delivery of the two jets means China-made regional jets have started to enter service.

Experts say that the reform and consolidation of the Chinese airline industry is laying a solid foundation for the rationalization of airline networks.

They say they believe the central government's decision to develop the western part of the country and the success of Beijing's bid to host the 2008 Olympics will open up further opportunities for a boom in the regional aviation market.

Industry insiders predict China is expected to need at least 620 regional jets - aircraft with 30 to 120 seats, and a range between 600 kilometers and 1,200 kilometers - in the next 20 years.

The General Administration of Civil Aviation of China said earlier that transport by regional jets will become a new growth area for the country's civil aviation industry.

Xu said domestic-made small aircraft are expected to account for 70 per cent of all regional flights within two decades.

"Vast market demand has brought enormous opportunities for Chinese aircraft companies," he said.

Experience from foreign countries suggests that no aircraft manufacturers can survive depending only on their domestic market.

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

The State Commission of Science, Technology and Industry for National Defence said as a nation of more than 1.2 billion people, China needs to build up its aviation manufacturing industry.

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

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

The State has already announced a series of plans to create preferential conditions for the use of regional liners.

(China Daily June 29, 2004)