FIA18: Embraer signs sales, options and LoI for 300 aircraft total value of $15.3 bn

posted on 18th July 2018 by Justin Burns
FIA18: Embraer signs sales, options and LoI for 300 aircraft total value of $15.3 bn

Not to be outdone by Boeing and Airbus – Embraer came in with some bumper orders for a total of 300 aircraft worth $15.3 billion over the last 48 hours at the Farnborough International Airshow.

The Brazilian-based regional aircraft manufacturer has signed a Letter of Intent (LoI) with Nordic Aviation Capital (NAC) for three E190 aircraft.

The deal has an estimated value of $156 million, based on Embraer’s list prices. These new aircraft will join the existing 134 E-Jets currently owned by NAC.

Azul Linhas Aéreas Brasileiras also penned LoI for a firm order of 21 E195-E2 aircraft, and said it is “fundamental” to meet its route and fleet strategy. This contract has a value of $1.4 billion.

This order is additional to an order for 30 E195-E2 jets signed by the airline in 2015, which will raise Azul’s total order to 51 Embraer E2 aircraft. Azul is the launch operator of the E195-E2 and will receive the first aircraft in 2019.

Zurich-based Helvetic Airways has also signed a Letter of Intent (LoI) for 12 E190-E2 and purchase rights for a further 12, with conversion rights to the E195-E2. If all purchase rights are exercised, the deal has a list price of $1.5 billion.

The first 12 E190-E2 aircraft will begin replacing Helvetic’s five Fokker 100s and seven E190s, starting in late 2019 and completing in autumn 2021.

The purchase options for a further 12 aircraft (E190-E2 or E195-E2) will enable Helvetic Airways to grow according to market opportunities and develop its route network.

Helvetic’s plans to operate to London City Airport in the future received a further boost last week (13 July) when the E2 made its debut at the airport located in the city of London.

African carrier Mauritania Airlines also placed a firm order for two E175 jets which it will use to grow its route network.
The contract has a value of $93.8 million, based on current list prices.

Mauritania Airlines will configure both aircraft with 76 seats in a comfortable dual class layout and plans on using the new aircraft to develop its destination network and frequencies on current routes. Deliveries will take place in 2019.

In a deal that will see the Middle East’s first E2 operator, Embraer signed a firm order for 10 E195-E2 aircraft with Kuwaiti airline, Wataniya Airways. The firm order will be included in Embraer’s 2018 third-quarter backlog.

The contract also includes 10 purchase rights for the same model, bringing the total potential order to up to 20 aircraft. The order has an estimated value of $1.3 billion, at current list price, with all the purchase rights being confirmed. The deliveries will start in 2020.

Wataniya Airways said the E195-E2 will allow it to open non-served markets and increase frequencies, delivering better connectivity to the Kuwait market.