Defunct Air Costa’s $3 billion order still in Embraer’s books
Hyderabad: Aircraft manufacturer Embraer SA of Brazil on Friday said that now-defunct airline Air Costa’s order of 50 aircraft worth about $3 billion is still in its books, and it has no time frame yet on the resolution to the situation or on cancellation of the order.
“Air Costa order is not off our books yet and there is no time frame I can give you on when the situation can be resolved,” Embraer Commercial Aviation’s vice-president (Asia-Pacific) Cesar Pereira said at the side lines of Wings India 2018.
“There is nothing we can do yet. We are in touch with them and they are trying to recover from that situation,” Pereira added.
Air Costa had during February 2014 placed definite orders for 25 E190-E2s and 25 E195-E2s aircraft with an option to purchase another 50 jets under the deal.
However, the Vijayawada-based airlines officially wound up operations after the Directorate General of Civil Aviation (DGCA) suspended its flying licence in June 2017.
Pereira said that if DGCA cancels Air Costa’s licence, the aircraft manufacturer could take these aircraft from its books before selling it in other markets.
“We need to wait for that (situation) to happen,” Pereira added.
Meanwhile, Bengaluru-based Star Aviation Pvt. Ltd has placed orders for pre-owned three 50-seater ERJ 145 aircraft to service their routes under the regional connectivity scheme (RCS).
“Embraer will deliver the first aircraft in couple of months,” Pereira said, adding that the regional airline has made future commitments with the aircraft manufacturer for used aircraft. He, however, declined to give further details.
“We are in talks with several other airlines to unlock opportunities with E 175 (for RCS routes,” Pereira added.