Late yesterday Embraer announced a deal with Air Kiribati. This morning, more good news – another deal under the tree!
In July at Farnborough, Brazil’s Azul signed an LoI for E2s, which had a contract value of $1.4Bn based on current list prices. Azul Linhas Aéreas Brasileiras signs a contract for a firm order for previously announced 21 E195-E2 jets and will be included in Embraer’s 2018 fourth-quarter backlog. Azul is the launch operator of the E195-E2 and will receive the first aircraft in 2019. This deal is in addition to the 30 E195-E2 jets ordered by the airline in 2015, raising Azul’s total order to 51 Embraer E2 aircraft.
Azul is a significant Embraer customer as it currently operates 60 E-195s and 10 E-190s. It appears the airline will be switching to the E2 over time as it retires its current E-Jets. It this is the case, we expect to see more E2 orders to reach 70. This deal fits with what we have heard from Embraer all along – the E2 is ideal to replace E1s as they are retired.