Star Air May Buy up to 20 Embraer Jets in $1-Bn Deal

Star Air, India’s largest regional airline, is in talks to buy up to 20 aircraft from Brazilian aircraft manufacturer Embraer, a move that could give the manufacturer an important foothold in one of the world’s fastest-growing aviation markets, according to a Bloomberg report.

The proposed deal would involve Embraer’s E2 series aircraft and is valued at about $1 billion at list prices.

The agreement is expected to include 10 firm orders and 10 additional purchase options that could be exercised later, while deliveries are likely to begin in the financial year ending March 2028.

The report further said that the discussions are ongoing and there is no certainty that a final agreement will be signed.

If completed, this would be the Sanjay Ghodawat Group-owned carrier's first direct aircraft purchase.

Embraer has been increasing its focus on India, as the company opened a new office in New Delhi in October, signalling its long-term plans for the country.

Star Air already operates a small fleet of Embraer aircraft, including leased E145 and E175 jets, which it reportedly plans to continue flying until any new planes are delivered.

Star Air currently accounts for about 0.5% of India’s domestic air traffic. In comparison, state-owned Alliance Air held a market share of around 0.2% and operates mainly ATR aircraft, along with one Dornier aircraft made by Hindustan Aeronautics Ltd, Bloomberg added.

Although the potential order is relatively small, it would be significant because it would be the first Embraer E2 order by an Indian regional airline, the report stated citing market analysts. It would also support India’s regional aviation push under government programs aimed at improving air connectivity to smaller cities.

India plans to increase the number of operational airports to about 400 by 2047, up from roughly 160 today, according to government statements. Authorities are also working to revive airports that already have infrastructure but no regular flight services.

India is now the world’s third-largest domestic aviation market, after the United States and China, according to industry data, making it a key growth area for global aircraft manufacturers.