Colorful Guizhou Airlines Signs Pool Agreement with Embraer

Embraer has signed a long-term agreement for the company’s Flight Hour Pool Program with Colorful Guizhou Airlines, providing a comprehensive components repair package for its E190 fleet.

This is also the first contract that Embraer has signed for the program in China for commercial aviation.

“As a start-up airline operating mainly regional lines in the beginning, we need strong and reliable support from the manufacturer,” said Zhai Yan, Chairman of the Guizhou Industrial Investment (Group) Co., Ltd, and Chairman of Colorful Guizhou Airlines. “The pool program offers us a comprehensive materials and services package with a predictable cost, which allows our limited human resources to concentrate on daily operations, which is critical for us at this stage.”

Established in June 2015, Colorful Guizhou Airlines is the first Embraer E190 customer in Guizhou province. The airline inked an order for up to 17 E190 (seven firm orders and ten optional) with Embraer, of which two were delivered and entered operation in December 2015.

Siu Ying Yeung, Chief Operating Officer, Embraer China, said that this partnership is a good start for Embraer China CS&S team, indicating that Chinese customers are beginning to realize the advantages of this service.

“The pool concept is very popular in Western countries, currently supporting more than fifty airlines worldwide, and I’m sure that will achieve the same success in China, where we are broadening the base of the CAAC component repair capabilities,” Siu said.

Embraer's Flight Hour Pool Program is designed to minimize an airline’s up-front investment in high-value repairable inventories and resources, while taking advantage of Embraer's technical expertise and its vast component service provider network. The results are significant savings on repair and inventory carrying costs as well as reduction in required warehouse space, virtually eliminating the need for resources required for repair management, and ultimately, guaranteed performance levels.

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