InterGlobe Aviation Ltd., the parent company of India's biggest airline IndiGo, is in talks with Embraer SA over a possible large regional jet order, according to people familiar with the matter.
IndiGo is considering purchasing dozens of Embraer E2 aircraft to replace its fleet of turboprop-powered ATRs as well as to bolster capacity, said the people, who asked not to be identified because the information is confidential. The discussions are at an early stage and there's no guarantee of an order, they said.
A deal, which could be valued at billions of dollars before customary industry discounts are applied, would be the biggest for the Brazilian manufacturer in India and brings it closer to establishing a full aircraft assembly line in the country. Embraer Chief Executive Officer Francisco Gomes Neto has previously said the planemaker needs to win orders for at least 200 of its E175 regional jets before it considers an Indian assembly facility.
ALSO READ: Titan Q1 Results: Profit Soars 63% To Beat Estimates; Revenue Tops Rs 21,300 Crore
Spokespersons for IndiGo and Embraer did not immediately respond to an emailed request for comments.
India is the world's third-largest market for air travel and growing rapidly, according to the industry body IATA. But with no commercial assembly in the country, the industry relies on foreign manufacturers for their planes. IndiGo and Air India Ltd. hold some of the industry's largest orders for new Airbus SE and Boeing Co. jets.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.