Indigo in talks with Brazil's Embraer to buy 100 jets

According to a Business Standard report, India's largest airline Indigo is in talks to buy 100 jets from Brazilian aircraft manufacturer Embraer. This information has been provided by three persons with direct knowledge of the matter, which may also include an option for around 50 more aircraft. This could become one of the largest orders placed with the Brazilian aircraft manufacturer.

These discussions are currently in the primary stage and these persons, speaking on the condition of anonymity, clarified that no deal has been finalized. Along with this, the aircraft model has not been decided yet and the order amount may also change. Two persons stated that the delivery of the aircraft could potentially begin as early as 2030. This number of aircraft under discussion has come to light for the first time. No immediate reaction has been given by Indigo and Embraer on this matter.

According to list prices, a successful sale of 100 jets could be worth billions of dollars, although discounts are common in such deals. Embraer has been marketing its regional jets to Indian airlines and has signed a non-binding agreement with Adani Defence and Aerospace this year regarding finding a final assembly line in India for its older generation E175-E1 jets. These aircraft have a seating capacity of 88 passengers.

Apart from this, the company also makes larger E190-E2 and E195-E2 jets, which have new and more fuel-efficient engines and can seat 114 and 146 passengers respectively. This could prove to be a major win for Embraer in the world's third-largest domestic aviation market, where airlines are expanding their fleets to meet the demand for long-term air travel. Currently, a small regional carrier named Star Air is India's only airline that operates Embraer aircraft.

While speaking to Reuters in the month of March, Embraer Chief Executive Officer Francisco Gomes Neto stated that the plan to build an assembly line in India is based on an order of at least 200 aircraft. If the order is secured by the end of this year, the delivery of aircraft assembled in India could begin from 2028.

This order from Embraer could help Indigo in increasing its routes in regional areas as well as replacing some of its ATR turboprops, enabling it to offer more seats on existing routes. Indigo CEO Pieter Elbers, who took charge in the month of August, has stated that the company will expand long-distance aviation services without compromising its low-cost short-haul business. The airline plans to increase its fleet from 442 aircraft up to September to around 600 aircraft by 2030. Its fleet mostly consists of Airbus narrowbody jets, but it also has 44 ATR turboprop aircraft.