E-190 E2 “shark” finds a loyal customer months after Farnborough
Embraer has been stirring up attention to its E-Jet E2 aircraft series every way it can – from rolling out animal-themed livery on its E190-E2 jet (the distinctive shark coating on the jet dubbed as “The Profit Hunter”), to completing six-country tour in Africa in an almost celebrity-like manner. But the real fanfare was brought to this year’s Farnborough International Airshow, where the Brazilian plane maker first unveiled the shark-faced regional jet, and displayed some major order activity. One of its customers, Helvetic Airways (Switzerland), has just made good on its intentions, firming up an order for 12 E-190 E-2s.
Embraer announced on July 18, 2018, that Helvetic placed an order for 12 E190-E2s during the Farnborough Airshow 2018. The deal, signed as a Letter of Intent (LOI), also included an option for an additional 12 jets which the airline could convert to the larger E195-E2. So far, all is going according to plan – as of September 26, 2018, the Swiss carrier had finalized its contract for the 12 E190-E2s, Embraer states. The order comes with a price tag of $730 million (at list prices).
Farnborough Airshow has proven to be successful for Embraer, particularly in light of a rivaling partnership between two other European and Canadian manufacturing giants. Just days before the start of the event, Airbus debuted the A220 jet, following its acquisition and rebranding of Bombardier’s C Series program. Meanwhile, Embraer has established its own transatlantic alliance with Boeing. The $4.8 billion worth joint venture saw the U.S. plane maker take a controlling stake in Embraer’s commercial aircraft business, essentially buying the new E2 Family of regional jets.
Oh, but the E2 series is actually not that new either – it is the second generation aircraft of Embraer’s E-Jet family of regional jets. These are being produced in three variants: the E190-E2, E195-E2 and E175-E2. They are expected to enter into service in 2018, 2019 and 2020 respectively. The Airbus A220 Family’s A220-100 and A220-300 models, formerly known as CS100 and CS300, are direct competitors to the E-Jets E2 in the 100- to 150-seat narrow-body market.
As for Helvetic, the airline acquired its first E190 in December 2014, a year and a half over since the E2 jet was first launched at the 2013 Paris Airshow. We might see a similar scenario happen again with Farnborough and the E195 (Embraer certainly hopes so). The Swiss carrier, which flies to short- and medium-haul European destinations, is currently in the process of modernizing its fleet – the 12 new E190-E2s are set to start replacing its aging fleet of five Fokker 100s and seven first-generation E190s in late 2019. Embraer says it expects the first batch of all of the new E-Jets to be delivered to Helvetic by autumn 2021.
The next deal we are keeping our eyes on? That is with the Brazilian airline Azul (AZUL) , which placed an order for 21 E195-E2s at the Farnborough Aishow 2018. The airline already is the launch operator for the E195-E2, and if exercised, the new deal would add to Azul’s (AZUL) firm order for 30 of the type from 2015.
Overall, Embraer states that at this year’s Farnborough Airshow, it managed to attract deals – in the form of both firm contracts and LOIs – from eight customers for 300 new first- and second-generation E-Jets. If all options and purchase rights came to fruition, the jets would value at around $15.3 billion.
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