Azul Increases Embraer E195-E2 Order By 50%

Today, Azul increased its order of 51 Embraer E195-E2 jets to 75, said John Rodgerson, CEO of the Brazilian carrier, as local newspaper Estadão reported. This consolidates the bet of the low-cost carrier: the domestic Brazilian market.  

Azul E2 delivery
Azul increased its order to 75 E195-E2 Photo: Embraer

A bigger fleet for the low-cost market

The original order from Azul consisted only of 21 E195-E2 jets. Then, on 19 December 2018, Embraer and the airline signed a contract with the addition of 30 extra units. Later, in September 2019, Embraer held a ceremony at its main facility in São José dos Campos. There, the manufacturer delivered the first E195-E2 to AerCap and Azul Linhas Aéreas.

Today, the carrier has four E195-E2 jets. In that sense, both parties also signed a long-term Flight Hour Pool Program agreement “to provide repairable component support for the carrier’s brand new fleet”. 

Advertisement

Last year, Azul expected its capacity to grow approximately 20%, driven mainly by the domestic market. The carrier currently has a fleet of 147 airplanes and a low-cost model. 

Advertisement

In 2018, Azul was the main operator in Brazil. For example, the carrier operated 31% of the flights in the domestic market, according to the Brazilian Civil Aviation National Agency. 

During that year, Azul had a fleet of 128 aircraft and was facing fierce competition in the domestic market from three rivals: GOL, LATAM and Avianca Brazil. However, the latter disappeared in 2019. 

Advertisement

Now, after the cease of Avianca Brazil, the other three carriers know the domestic market is up for grabs. Azul is in a good position, maybe even pole position, to consolidate. Think about it: in 2018, the carrier operated in at least 48 more Brazilian airports than anyone else. But, is the E195-E2 the best option?

Azul E195
Azul is the launch operator of the E195-E2 Photo: Embraer

The E195-E2, the powerhouse of the low-cost carriers

As of 30 September 2019, Embraer had a total of 124 firm orders and 50 options for the E195-E2. Among the companies that have ordered this new aircraft, is Aercap, the Irish leasing company. It had one of the biggest orders with 45. 

Additionally, KLM signed a letter of intent to purchase 35 of the aircraft. The deliveries will begin in 2021, while the Dutch airline phases out its Fokker fleet. But, what is the appeal of the new E195-E2?

The aircraft belongs to the E2 family, along with the E175-E2, a plane we think is a gamechanger for regional aviation. Embraer built the E195 with one competitor in mind: the Airbus A220. 

The aircraft has a typical capacity of 146 seats, a range of up to 4,815 km and a cost of 60.4 million USD per unit. If we compare it with the A220, the Embraer-built airplane is cheaper to operate which sounds good to the airlines that are sliding towards smaller planes that fly more frequently. In other words, we think Azul has the right plane for the future.

Embraer E195-E2
The E195-E2 is a perfect fit for low-cost carriers. Photo: Matti Blume via Wikimedia Commons

Azul lives the American Dream

Azul Linhas Aéreas started 2020 launching a new destination: New York. 

As the company stated: 

“Azul, the largest airline in Brazil by the number of cities served and flight departures, announces today the launch of daily service between São Paulo-Viracopos and JFK starting June 15.”

The route will be served by Azul’s A330 widebody aircraft. At JFK, the low-cost carrier will operate out of Jetblue’s Terminal T5. As a result, once Azul inaugurates the route, the carrier will operate 30 weekly flights to the US

What do you think? What are the benefits of the E195-E2 for Azul? Let us know in the comments.

Advertisement

7
Leave a Reply

5 Comment threads
2 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
5 Comment authors
newest oldest most voted
Frank

The A220 and the E2 line aren’t really competing for the same space. E2 is a regional jet and the A220 is a mainline aircraft. The E2 will feed into hubs, while the A220 is doing long and thin routes (hello there AirBaltic Riga to Abu Dhabi and Air Canada/Delta transcontinental). Jet Blue wants to take it overseas from the east coast, as it is ETOPS 180 rated.

Armand2REP

Of course Brasil would order more Embraer. It isn’t reflective of the international market which will be dominated by A220 sales as it is cheaper to operate.

Gerry S

Cheaper to operate is a two headed sword. To gain this advantage one has to pay quite a bit more for the a/c. Maybe, a whole lot more. Most small or less wealthy entities would be attracted to the Embraer product. It is presumptive to say that the market will be dominated by A220 sales. Embraer will hold its own.

Frank

The entire E2 line of 3 jets has an order book of 189 (plus this 25). The A220 line has 600. The E2 is a very nice, narrow regional jet – without a true business class, unless airlines start going 1-2 seating in J. The A220 is a different kettle of fish. The A220 has also effectively killed off the 737 Max 7 & the A319 Neo (82 & 26) – so those models will probably not get made. In reference to your “pay quite a bit more…” statement, wasn’t Boeing complaining how cheaply the A220 was being sold? Now… Read more »

Barend de Klerk

Frank the E2 will still grow in coming years. The big 3 in the US currently is negotiating a new Scope Clause. The A220 will never be used but the 190E2 is spot on and I think they just looking if maybe they can use the 195 so the order book will rise quickly as the deals are struck internally at airlines

Frank

The E2-190?? Scope clauses are provisions in contracts between major US airlines and their pilot unions which keep the airlines from farming out more flying to regional airlines. They prohibit regional affiliates from operating aircraft that have more than 76 seats or maximum gross takeoff weight in excess of 86,000lb. While the first generation of the E170 and E175 fulfilled the clauses, the E175-E2 with the new engines would put the aircraft 12,000lb over that maximum weight. There is no way the pilots are going to give in to 104 seats and 56,400 kg (124,340 lb). The E2-175 has 88… Read more »

Guilherme Braga

I never flew on the E195-E2, but I love Azul’s service. Embraer jets are usually comfortable.