Azul and Embraer sign firm order for up to 50 E-Jets E2 for $3.2 billion
The contract, announced as a Letter of Intent (LOI) during the 2014 edition of the Farnborough International Airshow, in July last year, also includes an additional 20 purchase rights for the same model, bringing the total potential order up to 50 E195-E2 jets.
“In the name of Embraer's 19,000 employees, I want to thank Azul for choosing us, once again, to be a part in the development of the company, which was born and has grown with the E-Jets in the Brazilian market,” says Paulo César Silva, president and CEO, Embraer Commercial Aviation.
The contract for the E-Jets E2 has an estimated value of $3.2 billion, at Embraer's current list prices, if all purchase rights are converted to firm orders. The firm orders will be included in Embraer's 2015 second-quarter backlog. The first delivery is scheduled for the second quarter of 2020.
“Our partnership with Embraer, since the founding of Azul, has been decisive for consolidating our business plan and our growth in the domestic aviation market. By choosing airplanes built and developed in Brazil, Azul contributes to generating and maintaining jobs, as well as to the development of Brazil's economy,” states David Neeleman, CEO of Azul.
“The E2 will be the most advanced airplane in its category, providing a savings on fuel burn more than 20% higher than the current model. That will be fundamental for maintaining our competitive fares and for growing in the domestic market.”
Currently, the Brazilian airline has a total of 82 E-Jets in service and another six E195s on order. It operates the largest fleet of E195s in the world. With this firm order from Azul, the E-Jets E2 backlog reaches 242 firm orders, plus 348 options and purchase rights.
The first delivery of an E-Jets E2 (the E190-E2) is planned for the first semester of 2018. The E195-E2 is scheduled to enter service in 2019 and the E175-E2 in 2020. ■