Embraer gets firm order for 50 E-Jets E2s

[SINGAPORE] Indian start-up airline Air Costa has placed a firm order for 50 E-Jets E2s from Brazilian planemaker Embraer, in a deal valued at US$2.94 billion, the companies said at the Singapore Airshow yesterday.

The order for the second-generation E-Jets makes Air Costa the first E-Jet E2 customer in India, Embraer said.

The order comprises 25 E190-E2s and 25 E195-E2s with purchase rights for Air Costa to double that. The deal would be US$5.88 billion at list prices if all options are exercised.

Paulo Cesar Silva, president and chief executive officer of Embraer Commercial Aviation, said E-Jets have the proven ability to stimulate traffic and provide affordable air travel to people in emerging markets.

"I see the domestic Indian market developing in a similar way with both the current E-Jets and of course the E2s," he said.

Air Costa, which began commercial operations last October, leases four current-generation E-Jets. It plans to lease around three more pre-owned E-190s each year until the new planes start arriving in 2018, the company said.

Air Costa's first E-190 E2 will be delivered in 2018, with the first E195 E2 to arrive only in 2019. They will seat between 98 and 118 passengers.

Ramesh Lingamaneni, chairman of Air Costa, said the company's initial experience with their current E-Jets was very positive.

"The E2s will give us the right-sized seat capacity for us to cater to the future target markets and unit costs that are competitive with larger re-engined single aisle aircraft," he said.

Pratt and Whitney's PurePower Geared Turbofans will provide power for the new aircraft.

Embraer's second-generation E-Jets were launched in Paris last year. This transaction raises the total E-Jet E2 orders to 200 firm, with another 200 on options.