Embraer has secured a firm order for three E175 regional jets and purchase rights for three more from Nigeria’s Overland Airways. Valued at $299.4 million at list prices, the aircraft will increase the African nation’s access to domestic flights and allow it to launch more regional routes. Plans call for deliveries to start in 2023.
“We are confident that this is the right moment to invest, as regional aviation is seeing a strong post-pandemic recovery,” said Edward Boyo, president and CEO of Overland Airways. “Our customers will enjoy the comfort offered by the E175, and we appreciate the partnership with Embraer.”
Based at Murtala Muhammed International Airport in Ikeja, Overland Airways operates two Beechcraft 1900s, four ATR 42s, and three ATR 72s. The airline commenced flights in 2002 with the aim of increasing the prosperity of the Nigerian hinterland by connecting hub cities and remote economies, it said.
“We are proud of this partnership with Overland, in support of their regional expansion,” said Cesar Pereira, Embraer Commercial Aviation v-p Europe, Middle East, and Africa. “We are seeing growing long-term demand for right-sized aircraft to deliver profitable domestic connections in Nigeria.”
Separately, Embraer released its 2021 Market Outlook at the show. The Brazilian manufacturer expects 8,640 jets and 2,260 turboprops, sized up to 150 seats, to lead to a market valued at $650 billion during the next 20 years. Jet deliveries of 2,710 in North America in the 20-year period will account for 31.4 percent of demand, while 320 aircraft bound for the Middle East will add up to 3.7 percent of the world market.
The report said the slowdown of the Middle East’s global hub strategy presents an issue, with the pandemic weakening demand and prompting the development of new strategies. “Over-exposure to long-haul, intercontinental traffic is a liability for the future,” the report said. “Fleet flexibility will be essential to explore underserved short-to-medium-haul markets.
The Middle East needs to diversify the mega-hub concept, the report said. "Opening new markets should facilitate intra-regional movement and economic diversification,” concluded Embraer.