Lessors See Opportunity in Eastern Europe, Embraer Says

Bulgaria’s Transport Minister Ivaylo Moskovski is pictured at the helm of an Embraer E 190 jet, the latest and brand new addition to the fleet of national flag carrier Bulgaria Air. Photo by BGNES

By Rupa Haria

Aviation Week

Aircraft lessors are increasingly interested in Eastern European airlines, despite the banking crisis that is crippling the finances of some European countries, according to Embraer.

Lessors see Eastern Europe as "low-risk and low-cost," says Simon Newitt, VP for Europe at Embraer's commercial aircraft division. "They like this part of the world. They're stepping forward, and we're seeing more activity in the region."

Newitt talked to Aviation Week last week in Sofia during the delivery of an Embraer 190 to Bulgaria Air. The airline has firm orders for four E-190s with Air Lease Corp. The E-190s, which will be delivered throughout 2012, will replace the airline's Avro RJ fleet. Newitt says Bulgaria Air also will phase out its aging Boeing 737 Classics, replacing them with E-Jets. The long-term plan, Newitt says, is to have a fleet of Embraers and Airbus A320s.

High Interest

Eastern Europe is a growth area for Embraer. Ten airlines in the region currently are operating E-Jets, and while the economic crisis has slowed fleet planning decisions, Newitt says Embraer is seeing a lot of interest.

Embraer currently does not have a nearby aftermarket facility, with the closest authorized European service centers at LOT Polish Airlines, Flybe in the U.K. and OGMA in Portugal. Newitt says Embraer is looking at MRO options in Eastern Europe, including Lufthansa Technik's Sofia facility.

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