Porter Airlines (Porter) has signed sale and leaseback agreement with Avolon for 10 new Embraer E195-E2 aircraft, with a list price value of US$841 million. The new aircraft will support Porter’s expansion of routes within Canada and further into the North American market.
The transaction represents Avolon’s fifth leasing customer in Canada and will increase Avolon’s portfolio exposure in North America. Four of the aircraft are scheduled for delivery in 2023, with the balance to be delivered in 2024.
Porter introduced the E195-E2 to commercial service in February 2023 and plans to expand its fleet in coming years, with 50 firm orders and the option to purchase 50 additional aircraft. Initial routes for Porter’s E2 fleet are focused within Canada, but the airline has ambitions to expand quickly to the south, soon offering service for its customers to key markets in the US, as well as Mexico and the Caribbean.
“Porter is renowned for its customer experience and has exciting plans for the expansion of its E2 fleet,” says Paul Geaney, president and chief commercial officer, Avolon. “We are delighted to welcome them as a customer and look forward to partnering on their future growth. Our decision to add the E2 to our portfolio is supported by its growing operator base, with the transaction further diversifying our portfolio, whilst offering attractive returns. The E2 is a modern fuel-efficient aircraft that offers excellent operating performance, competing effectively with other smaller narrowbody platforms.”
Jeffrey Brown, executive vice president and chief financial officer, Porter Airlines, described the E2 as an “incredible addition” to Porter’s fleet, which offers “best-in-class seat cost economics and providing an ideal platform to deliver the truly differentiated in-flight economy passenger experience”. He added: “We are excited to partner with Avolon and value their reputation and expertise in aircraft leasing, which makes them an ideal new partner.”
Martyn Holmes, chief commercial officer of Embraer Commercial Aviation, welcomed Avolon to the E2 program, adding that the deal was “another sign that the momentum the E2 is enjoying in the market is set to continue”. He said: “Adding a lessor of Avolon’s stature to the E2 program is a further endorsement for this great family of aircraft, and the value it delivers to operators and owners alike.”