InterGlobe Aviation Ltd., the parent company of India's biggest airline IndiGo, is in talks with Embraer SA over a possible large regional jet order, according to people familiar with the matter. As reported by NDTV, IndiGo is considering purchasing dozens of Embraer E2 aircraft to replace its fleet of turboprop-powered ATRs as well as to bolster capacity. The discussions are at an early stage and there's no guarantee of an order, according to sources who asked not to be identified because the information is confidential.
A deal, which could be valued at billions of dollars before customary industry discounts are applied, would be the biggest for the Brazilian manufacturer in India and brings it closer to establishing a full aircraft assembly line in the country. According to NDTV, Embraer Chief Executive Officer Francisco Gomes Neto has previously said the planemaker needs to win orders for at least 200 of its E175 regional jets before it considers an Indian assembly facility. Spokespersons for IndiGo and Embraer did not immediately respond to an emailed request for comments.
India is the world's third-largest market for air travel and growing rapidly, according to the industry body IATA. As reported by NDTV, with no commercial assembly in the country, the industry relies on foreign manufacturers for their planes. IndiGo and Air India Ltd. hold some of the industry's largest orders for new Airbus SE and Boeing Co. jets.
