Indian regional airline, Star Air, has signed a Letter of Intent (LOI) with regional aircraft lessor Nordic Aviation Capital (NAC) to lease two Embraer E175 jets, as reported by Network Thoughts. A potential deal could see Star Air take delivery of both jets by the end of this year and use them to expand its footprint in the Indian domestic market.
An unexpected development
Avgeeks in India and across the globe were patiently waiting for Air India to finally place an order for new aircraft at the 2022 Farnborough International Airshow. However, with yesterday's development, Star Air beat the Indian flag carrier to the punch.
Details on the potential deal are still scarce at this point, but more information is expected to follow soon. Simple Flying has written to the regional carrier seeking more details about the specific delivery schedule, seat configuration, and route network of the incoming E175 jets. This article will be updated when a response is received.
The LOI states Star Air will receive two Embraer E175 aircraft this year. Data from ch-aviation.com shows Nordic Aviation Capital owns 20 E175s across all variants. The majority of those are listed as stored or undergoing maintenance.
About Star Air
Star Air is an Indian regional airline that started operations in 2019 with Banglore’s Kempegowda International Airport (BLR) as its hub. The carrier operates flights under the Indian government’s UDAN (Ude Desh ka Aam Naagrik or ‘Let the common citizens of the country fly’) scheme, wherein operators are incentivized by the government to connect under-served regional airports.
Over the years, Star Air has built up a fleet of just five Embraer ERJ-145 regional jets in addition to a handful of Airbus Helicopters. It serves 18 domestic destinations across the country, focusing mainly on tier 2 and tier 3 cities. Star Air’s E145s can carry 50 passengers in a 1-2 all-economy seating configuration. All five airframes have been operated by other airlines in the past and are nearly 16.5 years old on average.
The E175 is a natural step up from Star Air’s current fleet. The incoming aircraft will help the airline increase capacity on some of its popular routes. Meanwhile, some E145 capacity will be freed up, which can be used to create new markets by connecting less-served airports.
Second NAC customer in India
If Star Air’s deal goes through, NAC will have signed a second Indian airline customer. The regional aircraft lessor has leased nine DHC Dash 8-Q400 aircraft to low-cost airline SpiceJet. Deliveries to SpiceJet started in late 2016 and continued for about a year. All but one of the nine airframes have been listed as active.
Days leading up to the 2022 Farnborough International Airshow have been quite good for Nordic Aviation Capital. The lessor made deals for 15 airframes in one week, a month after its exit from the Chapter 11 bankruptcy reorganization.
Have you ever traveled with Star Air? Please share your experience in the comments.