Embraer just reported that Congo Airways converted its firm order made in December 2019 for two E175s with purchase rights for two more, into a firm order for two E190-E2 jets, with purchase rights for a further two. The deal is valued at $256m at list prices.
Reflecting, perhaps, a sense among many airline managements that the pandemic impact has started to bottom out, Desire Bantu, CEO of Congo Airways said: “Despite the current difficult circumstances, the fundamentals of our market have not changed; so we expect the momentum we’ve seen in the past to redevelop. I said in December that we may need to make an additional order for E2s due to the agility required to adapt to market changes – we have now reached that point.”
Given the highly stressed period, commercial aviation has been these past two months, announcing a revised order reflects, potentially, a return to better times. This is a small deal, but under the circumstances, it carries a larger impact than might have even three months ago.
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.