Vijayawada-based airline Air Costa signed an agreement with Brazil-based Embraer for 50 Embraer Jets E2s. The deal has an estimated value of 2.94 billion dollar.
The acquisition of aircrafts is a mix of 25 E190-E2s and 25 E195-E2s with an additional purchase rights for 50 aircrafts bringing the total potential order to up to 100 aircraft and can reach 5.88 billion dollar if all are exercised.
Air Costa become the first customer of E-Jet E2s in the Indian market and will take delivery of the E190-E2 in 2018 and the E195-E2 is scheduled to enter service in 2019. Also, Air Costa will be the first airline to order and operate a large number of regional jets in India.
Embraer S.A is the world's largest manufacturer of commercial jets up to 130 seats and is one of Brazil's leading exporters. The deal is a boost for Embraer. It met with its delivery targets for its commercial and executive segments.
Air Costa currently operates a fleet of four aircraft in the southern Indian cities of Bangalore, Hyderabad, Chennai and other cities.
The airline, which only started operations in October 2013, is part of the privately held LEPL Group, a diversified company with interests in property development and infrastructure projects.