3 weeks ago
IndiGo in talks for multibillion-dollar Embraer regional jet order
IndiGo is the biggest airline in India.
It is talking with a company called Embraer, which makes airplanes in Brazil.
They are discussing buying many new planes called the E2.
These planes are bigger than the ones IndiGo uses now, which are called ATRs and have propellers.
The new planes would help IndiGo carry more people.
The deal could cost billions of dollars, which is a huge amount of money.
The talks are still early, so the deal might not happen at all.
Embraer hopes to build planes in India one day.
It would need many more orders before it can open a big factory there.
Embraer already works with a rich businessman in India named Gautam Adani.
IndiGo's parent company InterGlobe Aviation is in early-stage talks with Embraer SA about buying dozens of Embraer E2 regional jets.
The potential deal could be valued at billions of dollars before customary industry discounts are applied.
The E2 aircraft would replace IndiGo's fleet of turboprop-powered ATRs and bolster capacity.
Embraer CEO Francisco Gomes Neto has said the planemaker needs orders for at least 200 E175 regional jets before considering an Indian assembly facility.
Embraer has announced a partnership with Gautam Adani's conglomerate to build aircraft in India and opened its India office in New Delhi last October.
- Who
- InterGlobe Aviation, parent of India's biggest airline IndiGo, and Brazilian planemaker Embraer SA
- What
- Early-stage talks over a potential order of dozens of Embraer E2 regional jets to replace ATR turboprops
- Where
- India, where Embraer has a new office in New Delhi and a partnership to build aircraft
- When
- Current, per a recent Bloomberg report; discussions are at an early stage with no guarantee of an order
- Why
- To replace IndiGo's turboprop-powered ATR fleet and add capacity
Key facts
- Buyer
- IndiGo (via parent InterGlobe Aviation)
- Manufacturer
- Embraer SA (Brazil)
- Aircraft under discussion
- Embraer E2 family regional jets
- Potential deal value
- Billions of dollars before customary discounts
- Status
- Early-stage talks; no guarantee of an order
- Purpose
- Replace ATR turboprops and bolster capacity
- Condition for Indian assembly
- Embraer needs orders for at least 200 E175 jets
- Related partnership
- Gautam Adani's conglomerate to build aircraft in India
Sources
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