Brazilian Bank Helps Finance Alaska Airlines Purchase Of 11 Embraer E175s

Date:

Summary

  • Alaska Airlines secures $260 million financing from BNDES to acquire 11 Embraer E175 aircraft for its subsidiary, Horizon Air, expanding its regional fleet.
  • Delivery of the aircraft is scheduled between 2023 and 2024, and this marks BNDES’s first aircraft export financing with Alaska Airlines.
  • Alaska Airlines views the E175 as a highly efficient aircraft that fits perfectly into Horizon Air’s regional network in the Pacific Northwest, with plans to upgrade the fleet’s connectivity for an enhanced travel experience.


Alaska Airlines will acquire 11 Embraer E175 aircraft through a 1.3 billion reais ($260 million) financing from the Brazilian Development Bank (BNDES). The disbursements will be made in Brazilian reais in the South American country directly to Embraer, as reported by the news agency MercoPress.


Adding 11 E175 commercial jets

The fifth-largest airline in the United States is set to add more regional aircraft to the fleet of its branch, Horizon. As reported on Wednesday, the BNDES granted financing for the export of eleven E75, covering a portion of Alaska’s investment in the aircraft purchase.

The aircraft will be delivered to Horizon Air between 2023 and 2024, as per the commercial contract previously signed with Embraer. This is BNDES’s first aircraft export financing with the US carrier and its subsidiary.

An Horizon Air (Alaska Airlines subsidiary) aircraft.

Photo: Alaska Airlines.

Aloizio Mercadante, president at BNDES, said the Bank has been a long-standing partner of Embraer in supporting aircraft exports, allowing the company to maintain highly skilled jobs in Brazil, generating significant investments, and strengthening the country’s position in the international market.

Meanwhile, Antonio Carlos Garcia, Embraer’s finance and investor relations vice president, acknowledged the fundamental role played by BNDES in facilitating the export of Brazilian products with high added value, such as the aeronautical sector. BNDES and Embraer have partnered since 1997. The Bank provides competitive conditions similar to those offered by international competitors.

A good fit for Horizon’s market

Alaska Airlines sees the E175 as a highly efficient aircraft. This jet is the perfect aircraft to serve Horizon Air’s regional network in the Pacific Northwest, said Nat Pieper, senior vice president of fleet, finance, and alliance for Alaska Airlines in 2022.

The Horizon Air 76-seat E175 jet features 12 seats in first class, 12 in premium class, and 52 in the main cabin. Onboard amenities include free entertainment featuring over 1,000 movies and TV shows. First class customers also enjoy 110-volt power in every seat. All passengers flying on the E175 enjoy a window or aisle seat.

Last year, Horizon Air announced it would move to a single fleet of all E175 jets. It currently has 69 aircraft, including 39 E170. The remaining –currently inactive– planes are De Havilland DHC-8-Q400 turboprops that are set to be discontinued.

Internet connectivity on the E175 fleet

Additionally, Alaska Airlines announced a partnership with Intelsat earlier this year to outfit its E175 regional fleet with high-speed connectivity. Alaska Airlines is investing $25 million to upgrade the travel experience for the guests onboard Horizon Air.

An Horizon Air (Alaska Airlines subsidiary) Embraer E175 aircraft.

Photo: Alaska Airlines

This system will debut on Horizon Air in early 2024 and roll out across the regional jet fleet, including Alaska Airlines’ partnership with SkyWest, over a two-year period.

Sangita Worener, senior vice president of marketing and guest experience for Alaska Airlines, said that bringing st

  • Alaska 737-800
    Photo: Vincenzo Pace | Simple Flying

    Alaska Airlines

    IATA/ICAO Code:
    AS/ASA

    Airline Type:
    Full Service Carrier

    Hub(s):
    Anchorage International Airport, Los Angeles International Airport, Portland International Airport, San Francisco International Airport, Seattle-Tacoma International Airport

    Year Founded:
    1932

    Alliance:
    oneworld

    CEO:
    Ben Minicucci

    Country:
    United States

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