IndiGo reportedly in talks to buy 100 Embraer jets
Dhaka: IndiGo is reportedly in early talks to buy 100 Embraer regional jets, with an option for about 50 more, in what could become one of the largest orders ever placed with the Brazilian planemaker.
Media reports, citing three people with direct knowledge of the matter who requested anonymity, said the discussions are at an early stage and a deal is not guaranteed.
The aircraft model has not been finalized, and the number of planes could change. Deliveries would likely begin from 2030 at the earliest, according to two of the sources.
JPMorgan analysts estimated that an order for 100 aircraft could be worth around USD 5.1 billion, including a 35% discount to list prices, which is typical in large negotiations.
Embraer has been marketing its regional jets to Indian carriers. This year, it signed a non-binding pact with Adani Defence & Aerospace to explore a final assembly line in India for its older E175-E1 jets, which seat up to 88 passengers.
The manufacturer also builds the E190-E2 and E195-E2, which feature newer, more fuel-efficient engines and improved aerodynamics, and can seat up to 114 and 146 passengers, respectively.
Star Air, a small regional carrier, is currently the only Indian airline operating Embraer aircraft.
Embraer Chief Executive Francisco Gomes Neto told the media in March that the India assembly line plan depended on orders for at least 200 aircraft. He said jets assembled in India could be delivered from 2028 if orders were secured by the end of this year.
An Embraer order could help IndiGo expand its regional network and replace some of its ATR turboprops, allowing it to offer more seats on existing routes.
JPMorgan analysts said adding Embraer jets could be read as a move to step up in India's growing regional aviation market ahead of its peers.
IndiGo CEO Willie Walsh, who took charge in August, has said the airline will expand long-haul flying without compromising its low-cost short-haul business.
The carrier plans to grow its fleet to around 600 aircraft by 2030 from 442 as of September. Its fleet is mostly Airbus narrow-body jets, but it also includes 44 ATR turboprops.
India is the world's third-largest domestic aviation market, where airlines are aggressively expanding their fleets to tap long-term demand for air travel.
