FARNBOROUGH, England (Thomson Financial) - Brazilian aircraft manufacturer Embraer said it has signed a contract for up to 10 aircraft with a budget airline owned by former Austrian racing driver Niki Lauder.
Embraer, based in Sao Jose dos Campos, said it has signed a contract with NIKI Luftfahrt GmbH for five of its Embraer 190 jets.
The deal, worth $187.5 million in total, includes purchase rights for another five aircraft, which could be either the Embraer 190 or the Embraer 195, the Brazilian group said.
The total value of the contract could double if all options for the Embraer 190 are confirmed, it added.
Lauder told a news conference at the Farnborough Air Show that the airline wants smaller aircraft than it currently uses to help it serve lower cost destinations more easily.
'I'm very happy with this decision and I think it's the right one for us in these difficult times,' he said.
The aircraft will fly from Vienna and Innsbruck in Austria on routes in NIKI's existing European network, as well as new intra-European services.
Embraer said separately it has signed a contract with Aeromexico for 12 Embraer 190s, which will be incorporated into its fleet as part of the airline's modernisation plan. The aircraft will be run by its Aeromexico Connect subsidiary.
The Brazilian group said Saudi Arabia's National Air Services had confirmed options for five 190s worth $187.5 million at list prices, with the airline keeping purchase rights for 12 more aircraft of the same model.
Embraer said it has also secured an order for five 190s from Chinese regional carrier Kun Peng Airlines, again worth $187.5 million at list prices. philip.waller@thomsonreuters.com paw/kf1 COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.