Now Reading: IndiGo, Embraer in early talks for regional jet order
-
01
IndiGo, Embraer in early talks for regional jet order
IndiGo is in early talks with Brazilian planemaker Embraer for a large order of regional jets, a deal that could be worth billions of dollars before customary discounts. If finalised, it would…
The Story in Brief
IndiGo is in early talks with Brazilian planemaker Embraer for a large order of regional jets, a deal that could be worth billions of dollars before customary discounts. If finalised, it would be the biggest order for Embraer in India and brings the company closer to setting up a full aircraft assembly line in the country.
The discussions are at an early stage and no final decision has been made. IndiGo, which operates an all-Airbus fleet, is looking to expand into smaller cities and increase frequency on regional routes. Embraer makes the E-Jet series of regional aircraft.
The Indian Opinion
This early talk sounds like a coup for Embraer, but don't get ahead of yourselves. No firm order exists yet, and IndiGo has long stuck with Airbus. The narrative that this will quickly lead to a Brazilian assembly line in India also ignores the many regulatory and investment hurdles. Watch for one number: the final firm order count. If it's over 100 planes, the assembly line talk becomes real; if not, it's just a public negotiation.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
