India’s Air Costa has placed a firm order for 50 Embraer E-Jets E2s and acquired purchase rights on 50 more.
The manufacturer announced the order, which is for 25 Embraer 190-E2s and 25 Embraer 195-E2s and which the manufacturer values at $2.94 billion at 2014 list prices, on February 13 at the Singapore Airshow 2014.
Air Costa’s purchase rights are for an additional 25 Embraer 190-E2s and 25 Embraer 195-E2s, bringing the total potential order to up to 100 aircraft. Embraer puts a list-price value of $5.88 billion on Air Costa’s order if the Indian carrier exercises all its purchase rights.
This transaction brings total firm orders for the Embraer E-Jets E2 family to 200 aircraft. Customers have also secured options or purchase rights on another 200 E-Jets E2s since the launch of the E2 program, in June 2013.
Air Costa has become the first customer for E-Jets E2s in the Indian market and will take delivery of its first Embraer 190-E2 in 2018. The Embraer 195-E2 is scheduled to enter service in 2019.
Today, the airline flies four Embraer E-Jets: two Embraer 170s and two Embraer 190s. Air Costa is based at Vijayawada in the state of Andhra Pradesh.
Air Costa is currently operating a route network which connects cities in southern India such as Bangalore, Chennai, Hyderabad and Vijayawada, as well as key secondary cities in the north and northwest of the country.
The airline plans to link under-served markets with more direct flights, increasing frequencies and routes to serve growing metropolitan areas, as well as key secondary and tertiary business centers.
“Regional air services have enormous potential in India, especially the ones connecting tier one, two and three cities,” said Ramesh Lingamaneni, executive director of LEPL Group and chairman of Air Costa, the group’s aviation subsidiary.
“Our initial experience with our current E-Jets has been very positive. Our passengers have complimented the aircraft on its comfort and point-to-point convenience,” added Lingamaneni. “The E2s will give us right-sized seat capacity for us to cater to the future target markets and unit costs that are competitive with larger re-engined single aisle aircraft.”
Air Costa’s E2s will feature new-design cabins. Its Embraer 190-E2s will each be configured with 98 seats in two-class layout, offering six seats in first class. Its Embraer 195-E2s each will have 118 seats in a two-class payout, including 12 seats in first class.
Part of the privately held LEPL Group ‒ a diversified entity which has interests in property development and infrastructure development in the commercial, residential, education, power and health sectors ‒ Air Costa began scheduled services in October 2013.
The carrier operates Embraer E-Jets to primary and secondary cities in India such as Vijayawada, Jaipur, Bengaluru, Ahmedabad, Hyderabad and Chennai. Future destinations will include Goa, Pune, Madurai and Vizag, according to Embraer. For more information about Air Costa, visit www.aircosta.in.