Scandinavian Airlines (SAS) has settled with Bombardier and Goodrich Aerospace the terms of a compensation agreement stemming from the airline’s grounding of its entire fleet of 27 Q400s last year. Although it would not disclose the precise conditions, SAS said the value of the compensation it will receive slightly exceeds 1 billion Swedish crowns ($163.5 million) in cash and credits for future firm and optional aircraft orders.
European Regions Airline Association
A firm order for three 100-seat Embraer E190s from Finnair capped a brisk run of sales activity in the second half of February for the Brazilian airframe builder. The deal raises to 23 the number of E-Jets ordered by the Finnish flag carrier, which took delivery of its seventh E190 last month. It also flies ten 72-seat Embraer E170s.
Brazil’s Embraer announced an order here yesterday from U.S. aircraft leasing company Jetscape for 10 E190 jets, along with options for another 10 aircraft and “purchase rights” for 10 more.
The value of the transaction totals $375 million at list prices, and could reach $1.125 billion if all options and purchase rights are exercised. Deliveries are scheduled to start in 2009.
ATR announced regional turboprop orders from two South Pacific operators here yesterday. Air Tahiti has bought an ATR 72-500, valued at about $18 million. The 66-seater will operate under ETOPS-120 rules. Air Tahiti CEO Mate Galenon said the airline is now able to serve more islands, such as Hiva Oa in the Marquesas, which the airline could until now reach only with its smaller ATR 42s.
Polish flag carrier LOT confirmed last month that it will place a firm order for ten 70-seat Embraer 170s. LOT’s supervisory board approved the estimated $200 million deal on January 10, finally settling a hard-fought competition between the Brazilian manufacturer and its Canadian counterpart, Bombardier. Scheduled for delivery early next year, the first of the 70-seat jets will augment a fleet of fourteen 50-seat Embraer
Despite the encroachment of ever lighter new jet aircraft on the traditional marketplace for piston- and turboprop-powered models, there are always going to be requirements that can be cost effectively met only by rugged and versatile workhorses such as the Britten-Norman Islander.
Last year Embraer delivered 121 regional jets and 10 Legacy business jets (including two for military service). These figures were slightly lower than projected, the Brazilian manufacturer reported, because of the postponement of the deliveries of three business jets and delayed delivery of two regional jets. Despite the slow economy, Embraer forecasts it will deliver 148 aircraft this year and 155 next year.
A new report released by Forecast International says that Embraer will collect 40.8 percent of the projected $99.7 billion in sales of regional aircraft over the next 10 years, despite the lack of a turboprop in its existing product line. The Newtown, Conn.-based aerospace market research firm also predicts that Bombardier will take a 33.2-percent share over the next decade, while ATR secures 7 percent.
Franco-Italian aircraft maker ATR and engine supplier Pratt & Whitney Canada (P&WC) have begun studies on higher-weight applications of the 48-seat ATR 42-500 and 68-seat ATR 72-500 turboprops.
A steady rise in traffic and load factors might seem like good news for the airline delegates gathered at the European Regions Airline Association (ERA) general assembly in Vienna from September 29 to October 1. But as airlines turn to “fierce cost cutting” to attract passengers, reality muted any calls for celebration during the three-day event.