Embraer: Aerolíneas Argentinas E195-E2 Negotiations Suspended |

During the presentation of its 2024 financial results, Brazilian manufacturer Embraer confirmed that negotiations to replace Aerolíneas Argentinas' E190AR fleet with E195-E2 aircraft are "suspended" following Argentina's change of government. "After the administration change, the process was put on hold," said Francisco Gomes Neto, Embraer's CEO. "We believe the E195-E2 is the best option to renew the E190 fleet, but the process is currently suspended. We are ready to resume discussions when possible," he added. In February 2023, Pablo Ceriani, then-president of Aerolíneas Argentinas, announced the airline's intention to incorporate E195-E2 as part of its regional fleet renewal plan. The process began in July 2023 with an open bidding process involving leasing companies and manufacturers, allowing financial consortiums to submit proposals for supplying the aircraft. Initially, the airline planned to receive two aircraft in 2024, five in 2025, and five more in 2026, although it was willing to adjust the schedule depending on supplier availability. In August 2023, a delegation led by Ceriani traveled to São Paulo to advance negotiations on technical and financial aspects. In October, the company confirmed the progress of the talks in an official presentation. Uncertainty after the change of government The inauguration of Javier Milei as president in December 2023 created an atmosphere of uncertainty for the state-owned airline. During his campaign, Milei criticized the company’s management and emphasized the need to reduce the fiscal deficit. Since then, the airline has faced debates over cost-cutting measures and market liberalization, intensifying tensions between management and employees. In this context, fleet modernization faces obstacles, including the possible incorporation of Airbus A330-900 to replace the A330-200 and the phasing off of Boeing 737NG, replacing them with MAX-8 and MAX-9 models. The big question is whether investing in new aircraft is feasible when the government’s priority is to reduce the deficit in the short term. Competitive pressure in the market The lack of fleet renewal could impact Aerolíneas Argentinas' medium- and long-term competitiveness. While the company seeks to balance its finances and its CEO, Fabián Lombardo, projects moderate positive results for this year, delays in fleet updates could affect its operational efficiency. Meanwhile, JetSMART Argentina plans to incorporate three Airbus A321neo, optimizing costs on high-demand routes where it competes with Aerolíneas Argentinas and Flybondi. E195-E2: efficiency and lower consumption The Embraer E195-E2, initially chosen over the Airbus A220-300, is the largest model in the E2 family and is designed to optimize seat costs. Its single-class configuration accommodates up to 132 passengers with a seat pitch of 79 cm (31 inches). Its maximum takeoff weight (MTOW) is 61,500 kg, and its payload capacity is 16,150 kg. Its cruising speed is Mach 0.82, and its range is 2,450 nautical miles (4,537 km). Two Pratt & Whitney PW1900G engines generate between 19,000 and 23,000 pounds of thrust. This model consumes 13.8% less fuel than the current E190, reducing operating costs and CO? emissions. Additionally, its modernized cabin enhances passenger comfort while minimizing noise pollution.

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