Air TransportE195-E2 aircraft at SAS represent a crucial turning point for Embraer - here's why
The surprising agreement announced on Tuesday, for the sale of up to 55 E195-E2 jets to SAS Scandinavian Airlines carries far more weight for Embraer than it might initially appear.
Despite riding a wave of positive momentum in its stock performance, the Brazilian planemaker had yet to convince a major airline to place a large order for its E2 family of jets.
There are important operators of the commercial jet, such as KLM Cityhopper, Porter Airlines, and Azul Linhas Aéreas, but none of them match the profile of the Scandinavian carrier.
Porter, for example, is currently the largest operator of the E2, with 44 E195-E2 jets (from 75 aircraft ordered), but until recently it was a small regional airline in Canada focused solely on turboprops.
The E195-E2 opened new markets for Porter—many in the U.S.—but this was more of a bold bet than a marquee contract likely to influence other potential buyers.
KLM and Azul have large fleets but are leasing their aircraft, which doesn’t represent the same level of commitment to Embraer as Porter’s outright purchases.
Major Airlines Still Haven’t Embraced the E2s
Likewise, some of the newer E2 customers are either small or haven’t placed large orders. All Nippon Airways (ANA), for example, committed to 15 E190-E2s with five options—hardly a fleet cornerstone for an airline of that size.
Mexicana de Aviación is a different case. Backed by the Mexican government, the airline was urgently looking for new aircraft available for immediate delivery. The state-owned Mexican carrier just received the first of 20 E2 jets.
While the new-generation E-Jets have attracted a few good names, the backlog is nothing like that of the first generation.
Models like the E190, E195, and especially the E175 secured massive orders from major global carriers such as American, United, and Delta in the U.S., Air Canada, Alitalia, British Airways, LOT, JetBlue, Air France, KLM, and the Lufthansa Group, to name a few.
E2 as one of the main aircraft of SAS
That’s why SAS’s firm order for 45 E195-E2 jets—a traditional airline currently undergoing restructuring with support from Air France-KLM—is a potential turning point for the E2 family.
First, because this new fleet won’t play a supporting role in SAS’s plans. It will represent about half of the aircraft currently operated by the airline.
The goal is for the E2 jets to become the backbone of SAS’s European network, offering solid capacity and low operating costs, while the A320s handle higher-demand point-to-point routes.
With larger E2 fleets in service, Embraer will have a much stronger case to make to prospective clients considering its jets for more ambitious roles.
This is exactly what the company has been aiming for in recent years.
About the Author
Ricardo Meier
Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.
