Embraer won its first major aircraft order of the year at the Singapore Airshow, a firm $2.94 billion order from India's Air Costa for 50 E2 E-Jets.
The order includes further purchase rights for 50 additional aircraft, which if finalized would increase the value to $5.88 billion. Both the firm order and the purchase rights include a mix of 25 E-190 E2s and 25 larger E195 E2s.
Air Costa is the first India-based operator to purchase Embraer's next generation E2 jets, which are scheduled to enter into service in 2019. Currently, the airline operates a fleet that includes a mix of E170s and E190s.
"E-Jets have proven their ability to stimulate traffic and sustain airline profitability while providing affordable and comfortable air travel to people in emerging markets like Brazil and China. I see the domestic Indian market developing in a similar way with both the current E-Jets and of course the E2s," said Embraer CEO Paulo Cesar Silva.
The Indian airline will look to use the regional jets to increase its flight frequencies throughout India and surrounding areas.
Air Costa's order raises the total number of E2 orders to 200 firm and 200 options/purchase rights since the launch of the E2 program in June 2013.
Airlines in India and the surrounding Asia Pacific region will represent 20 percent of worldwide demand for regional jets over the next two decades, according to Embraer's market forecast for the market released earlier this week. According to the forecast, operators in the region will require 1,500 new jets in the 70- to 130-seat segment over the next 20 years, with 65 percent of new deliveries supporting market growth and the remaining 35 percent serving fleet modernization efforts.
“Passenger traffic in the Asia Pacific region is mostly composed by secondary markets with low and medium demand densities of up to 300 passengers daily each way. Some 60 percent of those markets are not served nonstop, and around half of all markets served do not allow for same day return travel,” said Silva.
“Embraer E-Jets provide the capability to develop a better traffic feed system and greater network connectivity, as well as improving the quality of services on existing markets where there is not enough demand to support larger single aisle aircraft operations.”
Embraer also used the Singapore Airshow to expand its business jet maintenance business, signing a contract with Hawker Pacific to provide full maintenance support to Legacy 450 and 500 business jets in the Asia Pacific region.