Singapore Air’s budget unit reaches deal for Embraer E2 jets

Singapore Airlines Ltd.’s low cost carrier signed a letter of intent to add Embraer SA regional jets to its fleet in a push to fly to smaller destinations in Asia’s emerging markets.

Scoot Pte Ltd will start taking delivery of nine E190 E2 jets from 2024, the carrier said in a statement Friday. The aircraft will be sourced from leasing company Azorra, and will allow Scoot to tap growth and match capacity to demand as it enhances its regional network, the statement said. 

The agreements marks the first time Singapore’s main airline is ordering Embraer planes and is a major boost for the Brazilian planemaker, which is seeking to secure the future for its flagship commercial aircraft. 

Bloomberg News in December first reported on Embraer’s efforts to sell regional jets to Singapore Airlines’ low-cost unit in an order that could grow to as many as 50 planes over time, as the carrier seeks to widen its reach in neighboring Indonesia, Malaysia, Vietnam, Thailand and the Philippines.

Scoot’s fleet accounts for about a quarter of the wider Singapore Airlines Group’s 200 aircraft. The budget unit currently operates Airbus SE A320neo and Boeing Co. 787 Dreamliner jets.

Scoot’s Chief Executive Officer Leslie Thng said last week the carrier could recover to 100% of its pre-pandemic capacity this year, and potentially go beyond that from its current level of 80%.