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Embraer’s reputation hit by China crash: experts  

plane-crashed

SAO PAULO, August 26, 2010: Brazil’s aircraft maker Embraer is in damage-limitation mode following the crash of one of its planes in China, said experts.

The company, the third-biggest commercial aviation manufacturer in the world whose success has made it one of the symbols of Brazil’s economic boom, is concerned at potential damage to its image in the wake of the crash of the ERJ-190 plane owned by China’s Henan Airline.

The airliner came to earth violently and burst into flames Tuesday as it landed at a northern Chinese airport in heavy fog, killing 42 people and injuring 54.

Chinese officials have launched an investigation, and Embraer has dispatched a team of technicians to help with the probe.

Although blame has not yet been apportioned, fears that mechanical problems might emerge drove Embraer shares down 3.87 percent on the day of the accident. On Wednesday, they made back a little ground, rising 1.53 percent.

China’s state news agency Xinhua said Chinese carriers had complained of other ERJ-190s having problems, notably broken turbine plates and flight control system errors.

Henan Airlines has grounded three of the four other ERJ-190s it operates on other routes until further notice.

Jose Lapena, a Brazilian expert in corporate image management, said Embraer’s market value would rise only if the company made a serious effort at communication.

“What happens in the case of an air accident is that, as long as the cause is unknown, everybody remains worried,” he said. “Embraer needs to quickly establish communication with its clients.”

He stressed that, if mechanical failure was pointed to, Embraer should display “total transparency.”

Such a strategy has worked in the past for Boeing and Airbus whenever they lost a plane, he noted.

Embraer was focusing much of its attention on the fall-out from the crash. A spokesman said “this is the first time (an Embraer plane) has been involved in a fatal accident.”

The company declined to comment on the Chinese reports of previous problems with Embraer jets being raised, saying only that it was customary for it to receive feedback from clients to improve its products.

Jorge Eduardo Leal Medeiros, a professor in engineering and transport at Sao Paulo University, stressed that Embraer planes “are considered safe” and are certified airworthy in Brazil, Europe and the United States.

He said among the possible causes were equipment failure — “which I don’t think was the case” — a maintenance shortcoming — “which remains to be determined” — or pilot error — “that, we still don’t know.” The poor weather could also have had a role.

Medeiros recalled an accident in Brazil in 1999 in which an Embraer plane, an ERJ-145, broke into three parts during a rough landing. There were no fatalities and authorities put it down to a mistake by the pilot.

A total of 30 ERJ-190s are in operation in China, Embraer said, adding it had sold five to Henan Airlines, including the one that crashed.

The Brazilian company has a factory in southeast China where it makes ERJ-145s, a small plane with a 50-seat capacity.

  • By KOL News , Written on August 26, 2010
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