Paris Air Show Embraer orders: Sriwijaya Air, Kenya Airways, Air Astana, GECAS and Air Lease Corporation
São José dos Campos, June 2011 – Sriwijaya Air, of Jakarta, Indonesia, has signed an agreement subject to final documentation for the acquisition of 20 EMBRAER 190 jets, with purchase rights for ten more aircraft. The order was announced at the 49th Paris Air Show. The total value of the deal, at list price, is USD 856 million, based on January 2011 economic conditions, and could reach USD 1.28 billion, if all purchase rights are exercised. Paulo César de Souza e Silva, Embraer President, Commercial Aviation, highlighted the significance of the transaction. “This is a very important endorsement of the EMBRAER 190’s capability to operate in such a diverse geographical environment as Indonesia, where flying is becoming an increasingly important means of connecting key business and tourism centers across a huge footprint. We’re very pleased that Sriwijaya recognizes the outstanding qualities of the E190s to accomplish its strategy.”
Sriwijaya Air’s E190s will be outfitted with 100 seats in a single-class configuration. The airline identified a need for a dedicated fleet of 100-seat aircraft to replace some of its narrow-bodies and to achieve its expansion objectives, adding new frequencies in existing domestic markets, as well as pioneering new nonstop services throughout the region.
Sriwijaya Air’s CEO, Chandra Lie, said “we selected the EMBRAER 190 because it best fits our strategy of developing new nonstop markets that are not economically viable with larger aircraft. The E190’s excellent range, airfield performance, and superior level of comfort will allow us to add incremental capacity, as those routes develop, thus improving the overall passenger flying experience in communities throughout Indonesia. The new aircraft type also lets us redeploy our bigger jets elsewhere in the network, where their size is more compatible with demand.”
The carrier intends to operate the E190s from its hub at Jakarta’s Soekarno Hatta International Airport (CGK) and other key centers at Balikpapan, Makassar, Surabaya and Medan. The jet will give Sriwijaya Air the flexibility to operate city-pairs with distances up to 2,300 nautical miles (4,260 kilometers).
Sriwijaya Air is Embraer’s newest customer and joins ten other carriers in the Asia Pacific/China region that have selected E-Jets. Airlines in Japan, China, Taiwan, and Australia operate a total of 90 E-Jets. Embraer provides comprehensive support and service for its South East Asian customers from Changi, Singapore. The facilities include a spare parts warehouse, full flight simulator, and cabin mockup for flight attendant training.
About Sriwijaya Air
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São José dos Campos, June 2011 – Embraer and Kenya’s national flag carrier Kenya Airways signed a Letter of Intent, subject to final agreement, for the acquisition of ten EMBRAER 190 jets at the 49th Paris Air Show, in France. The deal also includes options for another ten aircraft, which could be either the EMBRAER 190 (E190) or the EMBRAER 170 (E170).
“Kenya Airways’ decision to increase its fleet of EMBRAER 190 jets is great news, and we are delighted with this further sign of confidence from the largest E-Jets operator in Sub Saharan Africa,” said Paulo César de Souza e Silva, Embraer President, Commercial Aviation. “Complementing the existing E-Jets in their fleet, this is proof of the reliability and efficiency the jets bring to airlines, demonstrating the versatility, economics and performance of the E-Jets family.”
With the projected order, the total number of E-Jets ordered by Kenya Airways comes to 20, considering aircraft acquired directly from Embraer or through leasing companies.
Kenya Airway’s E190 will be configured in a dual-class layout with 96 seats: 12 in business class and 84 in economy. Deliveries are scheduled to begin in the second half of 2012. As the first E-Jets operator in Africa, since 2006, the airline has been operating five E170s and two E190s under agreements with leasing companies. Three E190 jets remain to be delivered this year and in 2012.
“As we continue to focus on the expansion of our network with longer routes from our hub in Nairobi, the acquisition of new EMBRAER 190s is key to our growth strategy,” said Dr. Titus Naikuni, Group Managing Director & Chief Executive of Kenya Airways. “The E190 jet fits well with our expansion strategy, giving us an opportunity to expand our network and increasing our frequencies beyond the current offering while cementing our mandate of connecting Africa to the World and the World to Africa through our hub at Jomo Kenyatta International Airport.”
The EMBRAER 190 is the third of the brand-new four-member Embraer E-Jets family of commercial aircraft and entered service in August 2005. The jet may be configured in one or two classes, seating 98 to 114 passengers in a comfortable four-abreast (2-2), no-middle-seat, configuration, and can fly up to 2,400 nautical miles (4,450 kilometers) nonstop.
About Kenya Airways
Kenya Airways, the Pride of Africa, operates the most modern fleet in Africa and is the state and flag carrier for the Republic of Kenya. It currently consists of 32 aircraft and flies to 54 destinations in Africa, Europe, the Middle East and the Far East. Its onboard service is renowned and the lie-flat business class seat on the wide-body aircraft is consistently voted among the world’s top 10. Recently, it scooped top awards at the Africa Investor (AI) Tourism Investor Awards and was declared the Business Airline of the Year in Africa. Kenya Airways takes pride in being at the forefront of connecting Africa to the World and the World to Africa through its hub at Jomo Kenyatta International Airport (JKIA). For more information, visit www.kenya-airways.com.
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São José dos Campos, June 2011 – Embraer and Air Astana, the national flag carrier of Kazakhstan, signed a contract for the sale of two EMBRAER 190 jets at the 49th Paris Air Show, in France. The deal also includes options for another two aircraft. The total value of the contract, at list price, is USD 85.6 million, based on January 2011 economic conditions, and could reach USD 171.2 million, if all options are exercised. Deliveries are scheduled to begin in the first half of 2012.
Source: “It’s very gratifying for us to see Air Astana continue to build its fleet of E-Jets, just one month after it started its EMBRAER 190 operations,” said Paulo César de Souza e Silva, Embraer President, Commercial Aviation. “The Central Asia market has great growth potential, and it’s a privilege to see Air Astana’s confidence in our E-Jets family as the aircraft of choice to develop their domestic and regional network.”
Since last month, Air Astana has been operating two EMRBAER 190 jets under a lease agreement with Jetscape, Inc., and will receive two additional aircraft in 2011 and 2012, in a lease agreement with Air Lease Corp. These two owned aircraft will bring Air Astana’s fleet to six EMRBAER 190 jets. “Air Astana is pursuing its strategy of renewal of its fleet with aircraft whose seating capacity will efficiently complement our narrow-body fleet without compromising passenger comfort,” said Peter Foster, President of Air Astana.
“The EMBRAER 190’s range, efficiency and size are ideal to increase services on some highly frequented routes and to start new routes in Central Asia, especially towards Uzbekistan, Tajikistan, and Kyrgyzstan, as well as Southern Russia and Georgia.”
Air Astana’s new EMBRAER 190 jets will also join the Embraer Pool Flight Hour Program, which gives the airline quick access to spare parts from Embraer’s distribution and service centers, eliminating the need for the airline to invest in a large inventory of replacement items.
About Air Astana
Air Astana commenced regular flight operations in May 2002, and currently operates a network that serves 24 domestic and 27 international destinations from its hubs in Almaty, Astana, and Atyrau. The airline flies an all-western fleet of 24 leased aircraft and is a member of IATA. It is the only airline in Kazakhstan with EASA Part 145 aircraft maintenance approval. The company is focused on providing the highest standards of quality and service to meet the needs of Kazakhstan, which has one of the world’s fastest growing economies. Air Astana is a joint venture between Kazakhstan’s sovereign wealth fund Samruk-Kazyna (51%) and BAE Systems PLC (49%). For more information, visit www.airastana.com.
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São José dos Campos, June 2011 – Embraer announced an amendment to its original sales contract with Air Lease Corporation signed after the Farnborough Air Show last year. The original contract covered 15 firm EMBRAER 190s plus 5 options. Air Lease exercised the 5 options, subsequently added other 5 aircraft, and is now adding 5 additional firm E190s, bringing its current contract with Embraer to 30 E-Jets, being 25 E190s and 5 E175s.
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São José dos Campos, June 2011 – Embraer announced an amendment to its original sales contract with Air Lease Corporation signed after the Farnborough Air Show last year. The original contract covered 15 firm EMBRAER 190s plus 5 options. Air Lease exercised the 5 options, subsequently added other 5 aircraft, and is now adding 5 additional firm E190s, bringing its current contract with Embraer to 30 E-Jets, being 25 E190s and 5 E175s.
Sales of Embraer E-Jets have surpassed the milestone of 1,000 firm orders. The aircraft have been selected by 60 customers in 40 countries. With more than 750 deliveries in the seven years since the first aircraft entered revenue service, the E-Jets family is one of the three most successful new aircraft programs in the history of commercial aviation.
Air Lease Corporation has placed its inventory of E-Jets with customers in five countries: Alitalia (10 aircraft), TRIP Linhas Aéreas of Brazil (6), Bulgaria Air (4), Kenya Airways (3), and Air Astana of Kazakhstan (2). The placement of the remaining five aircraft has not been disclosed.
Steven Udvar-Hazy, Chairman and CEO of Air Lease Corporation, explained the reasoning for the additional order from Embraer. “Our repeat order of E-Jets reflects the strong demand we continue to see from our airline customers around the world. With over 1,000 firm orders and a growing customer base on every continent, we see E-Jets playing an important role in our fleet expansion in the coming years.”
During a press briefing at the 49th International Paris Air Show, Embraer’s President of Commercial Aviation, Paulo César de Souza e Silva, said, “ALC gave its endorsement of E-Jets at Farnborough, last year, when the company was less than a year old. We’re honored that Udvar-Hazy has tripled the first order on the anniversary of the initial transaction. We’re grateful for ALC’s partnership, as we continue to offer right-sized fleet solutions to more customers around the world, with an efficient and state-of-the-art product.
About Air Lease Corporation
Launched in 2010, Air Lease Corporation (NYSE: AL) is an aircraft leasing company based in Los Angeles, California, U.S,, that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to airline partners worldwide through customized aircraft leasing and financing solutions. For more information, visit ALC’s website at www.airleasecorp.com.
