TOM GILL & MAX KINGSLEY-JONES / LONDON
Italian national carrier announces major regional acquisition programme including the firming up of six ERJ-145 options
Embraer has won an important second European customer for the Embraer 170/190 family after launch customer Swiss, with Alitalia committing to up to 12 aircraft as part of a $400 million order that includes further ERJ-145s.
The Italian flag carrier has unveiled a major regional aircraft acquisition plan comprising six 170s (plus six options) and the firming up of six ERJ-145 options. It has also decided to acquire three additional ATR 72-500 turboprops.
Alitalia, which operates eight ERJ-145s, will take three from the new order later this year and the rest in 2003, while the 170 deliveries will begin late next year. The 72-seat 170s will be used to start the replacement programme for the airline's 89 Boeing MD-80s. They will be deployed on services from Milan Linate/Malpensa and Rome Fuimicino airports to major European destinations.
The ERJ-145 component of the Embraer deal is expected to be signed for immediately, while finalising the purchase agreement for the 170 order is expected to take a few weeks, says a source close to the negotiations.
Embraer values the firm component of the ERJ-145/170 deal at $250 million, increasing to $400 million if the options are converted. The 170 options can be exercised as the larger 190 family, says Embraer.
The 170 order is a significant coup for Embraer, which, like other regional manufacturers, has been frustrated by the sales slump of the new generation 70-100 seat regional jets since the 11 September terrorist attacks. Prior to the Alitalia announcement, Embraer had just two airlines signed up for firm 170/190 orders - Swiss with 30 and Air Caraibes with two. Lessor GE Capital Aviation Services also has 50 orders. Four 170s are in the flight-test programme, with Swiss deliveries to begin in the second quarter of next year.
Meanwhile, Alitalia last week received the green light from the European Commission (EC) for a €1.4 billion ($1.32 billion) recapitalisation plan, mostly financed by the Italian government. This will be used to fund fleet modernisation and to help cover current record losses.
The EC ruled that the proposed government investment does not count as state aid, saying that the planned share and bond issue "fully complied with the criterion of an investor in a market economy".
The Commission also released €129 million, the third tranche of an earlier package.
Source: Flight International
