Star Air, India’s largest regional airline, is analyzing the possible acquisition of up to 20 aircraft from Brazilian manufacturer Embraer. This operation could mark a turning point both for the Asian company and for the South American aircraft maker in one of the world’s fastest-growing aviation markets, Bloomberg reported.
An Order Valued at Around $1 Billion
According to people familiar with the process, the negotiations involve aircraft from the Embraer E2 family and would have an approximate value of $1 billion, based on the list price of these aircraft. Deliveries would begin in the fiscal year ending in March 2028, provided the talks reach a successful conclusion.
The structure of the potential contract would include 10 firm orders and 10 additional options, which could be executed at a later stage. The sources requested anonymity because the discussions are not public.
A Key Operation for Star Air and for Embraer
If finalized, this purchase would be the first made by Star Air, an airline owned by the Sanjay Ghodawat Group, a conglomerate with interests in consumer products, education, retail, and mining. For Embraer, it would represent a significant advance in India, a country where it seeks to expand its commercial footprint.
In October, the Brazilian manufacturer opened its office in New Delhi, a clear signal of its ambitions in the Indian market. Currently, Star Air operates a small fleet of leased Embraer E145 and E175 aircraft, which it will continue to use until the arrival of the new units, according to the same sources.
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Ongoing Negotiations with No Guarantees
Talks regarding the order are still ongoing, and there is no certainty that a definitive agreement will be reached. An airline spokesperson indicated via email that Star Air continues to evaluate opportunities to expand and modernize its fleet. Embraer, for its part, declined to comment on the matter.
Context of India’s Regional Market
Star Air leads the regional segment in India and during the month of October transported 0.5% of the country’s domestic traffic. In comparison, state-owned airline Alliance Air registered a 0.2% share and operates a fleet of 20 ATR aircraft and one HAL Dornier.
Although the order would be relatively small in volume, it would carry significant strategic weight. It would be the first made by a regional airline and would allow Star Air to capitalize on the government’s goal of increasing the total number of airports in India from 160 to 400 by the year 2047. Furthermore, the country is working on a plan to expand regional connectivity to aerodromes that have infrastructure but lack regular commercial operations.
India, an Aviation Market in Full Expansion
The backdrop of this potential purchase is an environment of strong growth. India has become the world’s third-largest domestic aviation market, behind only the United States and China. In this scenario, bolstering its fleet with new-generation aircraft could offer Star Air a stronger position to accompany the expansion of regional air transport in the coming years.
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