Embraer announced nearly $15 billion worth of new sales contracts at the Farnborough Airshow on Tuesday afternoon, led by a letter of intent (LOI) from Republic Airways of the U.S. that calls for a firm order for 100 E175s and purchase rights on another 100. All told, the Brazilian manufacturer collected commitments for 275 E-Jets on Tuesday.
The $9.3 billion Republic contract allows for the conversion to the upcoming E175-E2, scheduled for entry into service in 2021. Constrained by pilot union contracts at mainline U.S. airlines that limit the number and weight of jets at their regional partners, Republic would likely opt to convert at least some of the delivery positions to E175-E2s if those so-called scope clauses are relaxed.
Another big Embraer customer from the Americas that doesn’t operate under the same constraints—Brazilian carrier Azul—signed an LOI for a firm order for 21 E195-E2s. Led by JetBlue founder David Neeleman, Azul already operates 63 E-Jets and holds a separate firm order for 30 E195-E2s.
More E2 business yesterday came in the form of an LOI for 12 E190-E2s and purchase rights for a further 12 from Switzerland’s Helvetic Airways. Zurich-based Helvetic also holds conversion rights, in its case for the E195-E2—the largest of the three-member E2 family.
Scheduled for service entry next year, the E195-E2 drew its Middle Eastern launch customer on Tuesday, when Kuwait’s Wataniya Airways inked a firm order for 10 of the E2 family’s biggest member. The contract, valued at some $650 million, includes purchase rights for another 10 of the same model, potentially raising its value to $1.3 billion. Wataniya plans to take its first airplane in 2020.
Embraer expanded its geographic presence in Africa as well, selling its first E175 on the continent to Mauritania Airlines. The Western African carrier inked a firm order for two of the jets. The contract calls for deliveries to take place next year and for Mauritania to configure the airplanes in a 76-seat layout.
Finally, a firm order for three more E195-E2s and purchase rights on another two came from an unidentified Spanish operator, while Danish lessor Nordic Aviation Capital signed an LOI for three E190s.
Including Monday’s order from United Airlines for 25 E175s scheduled for delivery next year, Embraer by the end of the day announced contracts covering 300 airplanes worth $15.3 billion.
