Flybe to buy from Embraer

UK regional discount fare air carrier FlyBE announced on Monday that it will buy as many as 26 regional jets from Brazilian aircraft manufacturer Embraer.

The deal could be worth up to $950 million.

The planes, the first orders for the Embraer 195, are expected to be delivered at the rate of one plane per month beginning in August 2006.

The planes, which will replace the carrier’s 15 BAe146 planes, were said to be more appropriate to FlyBE’s regional routes than larger jets and have comparable seat costs.

The decision to buy the new planes comes ahead of either an initial public offering or an attempt to sell the airline.

In preparation for either alternative, FlyBE is reducing the number of aircraft types it flies from five to two - the 118-seat Embraer 195 and the 78-seat Bombardier Q400 turbroprop - in an attempt to simplify operations and cut costs.

The move will also reportedly allow FlyBE to expand the number of UK regions in which it could offer direct European service. It has been developing new bases in the past few months.

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