Embraer’s offer to Croatia Airlines “hard to refuse”
Embraer is confident it can secure an order from Croatia Airlines to replace its entire fleet of six Dash 8 turboprops and seven Airbus A320-family aircraft, saying the offer it has prepared for the airline is “too hard to refuse”. Although both Embraer and Airbus presented their aircraft to the carrier exactly a year ago - Embraer its E2 jet and Airbus its A220 - the Brazilian planemaker says it is prepared to replace Croatia Airlines’ fleet within eighteen months of securing an order. “From the day we presented our aircraft in Zagreb we have been at the disposal of Croatia Airlines’ team. Embraer is an expert in this segment of the aviation market, and we believe that the best solution for Croatia Airlines would be to align its fleet with the same family of advanced new-generation aircraft. If we take organic traffic growth into account, we are talking about a fleet of some fifteen aircraft”, the President and CEO of Embraer Commercial Aviation, Arjan Meijer, told the “Jutarnji List” daily.
The plane manufacturer has offered Croatia Airlines a good deal if it secures an order. “Embraer has put together an offer that is hard to refuse. In principle, we do not publicise the value. What I can say is that our aircraft would generate a significantly higher operating profit in Croatia Airlines’ network, due to its significantly smaller cost base. The calculation of this advantage over a ten-to-fifteen-year period of flying amounts to several million dollars per aircraft. I am convinced that we can translate our lower production costs into a far better offer for Croatia Airlines, saving the country millions”, Mr Meijer said. He added, “Also, Embraer would compensate for any financial difference that Croatia Airlines might have due to the previous, unfulfilled order from Airbus. This tender is of strategic importance for us and we want to ensure that the airline has complete freedom of choice between the two options”.
Embraer’s Vice President for Sales and Marketing, Cesar Pereira, previously told EX-YU Aviation News, “The E2 family of aircraft would allow Croatia Airlines to significantly boost operational efficiency and lower costs, by reducing complexities that airlines typically have if they operate more than one type. This includes areas such as crew training, scheduling, maintenance, and operations. The overall result of flying a single-type fleet is lower costs and improving the airline’s financial performance”. He added, “The E2 family is comprised of three family members, from ninety to 146 seats, which will offer Croatia Airlines great flexibility to operate the ideal capacity on their future network. Embraer is in advanced stages of launching a next generation turboprop aircraft, built on the design and comfort of the E2. Once launched, this aircraft could be a formidable contender for Croatia Airlines on thinner and shorter markets, where the Q400 is operating today”.
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