IndiGo reportedly in talks to buy 100 Embraer jets, may place order for 50 more: What we know
India's largest airline, IndiGo, is exploring the possibility of purchasing 100 regional jets from Brazilian aircraft manufacturer Embraer, with an option to acquire up to 50 additional aircraft, according to a Reuters report citing people familiar with the discussions.
The proposed deal, which could be worth billions of dollars at list prices, would mark a significant expansion of IndiGo's aircraft portfolio beyond its existing Airbus narrowbody jets and ATR turboprop fleet. However, negotiations are at an early stage, and there is no guarantee that an agreement will be reached.
The aircraft model has not yet been finalised, while the number of jets under consideration could also change. If the deal goes through, deliveries are unlikely to begin before 2030, the report said.
A purchase of 100 regional aircraft would represent a major commercial opportunity for Embraer, although actual contract values could be lower than catalogue prices because aircraft manufacturers typically offer substantial discounts on large orders.
The Brazilian planemaker has been actively exploring opportunities in India's growing aviation market. Earlier this year, Embraer signed a non-binding agreement with Adani Defence & Aerospace to examine the possibility of establishing a final assembly line in India for its E175-E1 regional jets.
The E175-E1 can accommodate up to 88 passengers. Embraer also manufactures the newer-generation E190-E2 and E195-E2 aircraft, which feature more fuel-efficient engines and can carry up to 114 and 146 passengers, respectively.
A confirmed order from IndiGo would be a major breakthrough for Embraer in India, the world's third-largest domestic aviation market. Indian airlines are expanding their aircraft fleets as passenger traffic and demand for air travel continue to increase.
Currently, Star Air is the only Indian regional airline operating Embraer aircraft.
Embraer Chief Executive Officer Francisco Gomes Neto had told Reuters in March that the proposed Indian assembly facility would depend on securing orders for at least 200 aircraft.
He had indicated that aircraft assembled in India could potentially be delivered from 2028 if the company secured the required orders by the end of the year.
An Embraer aircraft order could help IndiGo expand its operations to smaller cities and regional destinations where larger aircraft may not be commercially viable.
The jets could also enable the airline to replace some of its ATR turboprop aircraft on existing routes. Operating larger regional jets would allow IndiGo to offer additional passenger capacity on selected routes while strengthening connectivity between smaller cities and major aviation hubs.
Such an expansion would support the airline's strategy of increasing capacity while retaining its competitive position in India's price-sensitive aviation market.
IndiGo is also pursuing an ambitious fleet expansion strategy. Chief Executive Officer Willie Walsh, who assumed charge in August, has indicated that the airline intends to expand its international and long-haul operations without compromising its low-cost short-haul business model.
The airline plans to increase its fleet to approximately 600 aircraft by 2030, compared with 442 aircraft as of September.
Its existing fleet primarily comprises Airbus narrowbody aircraft, alongside 44 ATR turboprop planes.
The proposed Embraer purchase could therefore provide IndiGo with an additional aircraft category to serve regional markets, improve route economics and expand its domestic network.
However, the discussions remain preliminary, and the potential purchase will depend on the outcome of negotiations and the airline's final aircraft requirements.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.