New E2 Placements Drive Embraer Services Growth

Scott Embraer E190-E2 aircraft
Credit: Embraer

Embraer has followed up the first placements of its E2 aircraft in Southeast Asia with an aftermarket contract with Malaysia-based SKS Airways.

Under the pool program contract, Embraer will provide component exchanges and repair services across 300 repairable parts to support SKS’ future fleet of 10 E195-E2 aircraft.

The pool program includes Embraer’s eSolutions to enhance fleet monitoring and preventive maintenance. SKS Airways will also receive Embraer’s AHEAD (Aircraft Health Analysis and Diagnosis) service, which comprises early detection capabilities for critical systems to reduce technical interruptions and avoid flight cancellations; eSight, which provides real-time fleet performance monitoring; and ePerf, a tablet application for pilots that generates runway performance data offline from the cockpit in any phase of flight.

This week, SKS signed a lease deal with Azorra Aviation for the 10 E2s, first delivery of which will occur in 2024.

The lease placement was one of three concluded for E2 aircraft by Azorra in the past seven days. The Fort Lauderdale-based lessor will also supply nine E190-E2 aircraft to Scoot, a Singapore Airlines subsidiary, also for delivery in 2024. These will come from Azorra’s order book with Embraer.

From late 2023, meanwhile, Royal Jordanian will take delivery of four E190-E2 and two E195-E2 aircraft it has agreed to lease from Azorra.

Embraer reported in its recent results from the first quarter of 2023 that services and support was its biggest revenue earner by some margin, recording a 20% increase in revenue, year on year, to $326 million. Revenue for commercial aviation, in contrast, was $199 million.

Its services backlog, meanwhile, was $2.4 billion, compared with $9 billion for commercial aircraft.

The OEM said it was still suffering from supply chain challenges in the first quarter, in which it delivered seven commercial aircraft. Embraer delivered 57 commercial aircraft in 2022.

Alex Derber

Alex Derber, a UK-based aviation journalist, is editor of the Engine Yearbook and a contributor to Aviation Week and Inside MRO.