Embraer Needs 200 Orders for India E175 FAL

Interestingly, the MoU was signed on the day The Times of India, India’s largest-circulated English daily, carried an interview with Embraer CEO Francisco Gomes Neto, in which he stated that Embraer will need a firm order for 200 aircraft for the FAL to be “viable and feasible.” Gomes Neto further said that, given the potential of the Indian market, expecting firm orders was reasonable. He added that if they were to secure a firm commitment for 200 aircraft this year, the FAL will be ready to roll out Embraer aircraft by 2028, or about 24 months after starting work. Take AirInsight on a Test Flight 7 days full access — premium analysis and the complete data model library — for $1. No commitment. Start My Test Flight ? The Embraer official said that if getting 200 firm orders takes a while, a start could be made with a “completion centre” where ordered aircraft will fly in from Brazil, be fitted with seats and other work, apart from painting, before they are delivered to local customers. The President and CEO of Embraer is to meet with Air India and IndiGo officials during his ongoing visit to India to try to convince these two airlines to purchase the Embraer aircraft. The two airlines control over 60 percent of the Indian domestic market. Currently, IndiGo uses ATR aircraft for regional flights. Besides, Alliance Air, primarily a regional airline, uses the ATR 72, ATR 42, and Dornier 228 for flights in the North Eastern parts of India. Alliance Air was earlier a subsidiary of the then state-owned Air India, but was hived off just before AI was sold to the Tata Sons in 2021. It is worth noting that Airbus failed to convince Indian airlines to purchase the A220, even as an Air Baltic Airbus A220 conducted an all-India tour just before Covid disrupted air travel globally. Emphasising the growing relationship between India and the Brazil-based aircraft manufacturer, Neto said that for the past one and a half years, the company had been working to establish a supply base in the country to buy parts for the aircraft produced by the manufacturer. At present, Embraer has over 15 supply chain partners in India. The coming up of the FAL will fulfil a long-standing desire of the Indian Government In June last year, while speaking at the International Air Transport (IATA) AGM in Delhi, Narendra Modi, the Indian Prime Minister, called on global aviation companies to go beyond manufacturing and invest in aircraft and component design in India, highlighting the country’s liberal investment climate and fast-growing aviation ecosystem. “I request all aviation players to implement Design in India along with Make in India,” Modi said, speaking at the IATA summit. “For the world’s leading aviation companies, India presents an excellent opportunity for investment.” Earlier aviation MoUs have not taken off India has a history of aviation MoUs not taking off. For example, in 2017, the Indian low-cost carrier SpiceJet entered into an MoU. The airline is in talks with Japan’s Setouchi Holdings Inc. to buy about 100 amphibious Kodiak planes that can land anywhere, including on water, gravel, or in an open field. The deal was valued at about $400 million. But now nothing is mentioned of this project. India government looks to provide incentives for Indian airlines that order from the Embraer FAL The Indian government is reportedly considering providing fiscal incentives to airlines that order from Embraer's FAL in India. Details of the incentives are yet to be worked out, officials said. In June last year, Embraer officials told the Indian media that it would increase sourcing from India and could even set up a FAL there. Embraer has been bullish on prospects in India Officials of the Brazilian company have been very bullish on the Indian market. The Brazilian aircraft manufacturer has a presence in the civilian airspace through Star Air, a regional airline. But its aircraft are also flown by defence forces in India and are a popular business jet. Embraer is also set to be in talks with IndiGo and Air India to sell its E2 jets in India. IndiGo and Air India control over 80 percent of the domestic aviation market in India.

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