150 Embraer Jets To Be Ordered?

A record-breaking Embraer order could be approaching, with IndiGo in early talks for as many as 150 regional jets from the Brazilian planemaker.

In a possible deal that would include 100 firm units, with as many as 50 further options that may be activated later, the transaction is part of efforts to reshape the Indian carrier’s domestic fleet.

Reuters cited three sources familiar with direct discussions between the airline and the jet manufacturer; this forms part of an intended overhaul of domestic and regional flying that IndiGo has planned for some time.

While IndiGo seems to be moving forward with Embraer as the favourite, the reported up to 150-jet contract hasn’t been finalised and remains in early discussions, so it is still highly subject to change.

The Embraer regional jet order

150 aircraft being ordered at Airbus and Boeing is substantial, like any other three-digit order, but in the 2020s, not uncommon, as airlines rapidly scale their delivery pipeline to secure spots in the 2030s.

For a planemaker like Embraer, the purchase of this number, even for just 100, would put it ahead of Airbus and Boeing and, crucially, give it a position with one of India’s largest and most ambitious airlines aiming to become a global force.

With this in mind, for Embraer this isn’t just a regular commercial transaction, but it’s the chance for it to become the largest order ever confirmed and fundamentally give it the support for production of its E2, further improved cash flow, and more reasons to scale sales pushes for its family of jets.

Just a couple of months ago, reports indicated that IndiGo was evaluating the Embraer E190-E2 and the higher-capacity E195-E2 as part of a new regional jet order, but those reports established no clear frontrunner, nor did they suggest anything beyond due diligence.

Where the E190-E2 can seat just over 110 passengers, the E195-E2 can seat close to 150; that capacity, paired with the possible addition of the E190-E2 under a mixed variant fleet, could give the airline the vital capacity and range it needs for regional operations without being forced to rely on a larger and inadequate Airbus narrowbody.

Embraer will face competition from the order

IndiGo’s search for these new regional jets has been years in the making, as it cited the need to offer more capacity than its current ATR turboprops after reviewing its fleet makeup and realising there were better opportunities to scale regional and secondary-city connectivity in its home country.

Two years ago, the airline was reported to be speaking with planemakers about acquiring up to 100 aircraft, with Embraer, Airbus, and ATR all involved. Since then, developments have shifted repeatedly, with initial expectations suggesting ATR was likely to retain the business to stay competitive.

However, more recent commentary has linked Embraer more closely with ATR, while the latter offers commonality in a turboprop market bolstered less than a decade ago by a new order for the ATR 72s; more opportunity has recently been seen in introducing Embraer.

The potential purchase is now putting plane makers against each other and is aimed at supporting a different side of IndiGo’s future expansion. These regional jets are seen as important to elevate not just capacity, but also the launch of regional routes.

IndiGo’s ATR fleet has proved reliable for quite some time now, but the smaller capacity of these is beginning to show stress factors on the network and necessitating maybe not a complete axing of this product, but certainly the shift towards a more powerful and crucially larger regional jet.

Embraer, though, will push hard for this deal; beyond adding another customer, it could strengthen its position in India as the world’s fastest-growing market. With Star Air as its only customer, adding another business could be huge for its prospects in the country and then deeper into Asia.

With United Airlines’ chief executive Scott Kirby just last week expressing frustrations over the duopoly held by Airbus and Boeing, while Embraer isn’t committed to launching a new plane, growth in locations like India with record-breaking deals gives it the evidence to suggest it can make a mark with an ttractive airframe and delivery terms while still having a long-established history.