Embraer Signs NIKI Airline for Five Embraer 190 Jets

Released on Monday, July 14, 2008

S�o José dos Campos, July 14, 2008 � Embraer and Austria's NIKI Luftfahrt GmbH signed a contract for five EMBRAER 190 jets. The agreement was announced today at the 46th Farnborough Airshow, in England, and includes purchase rights for another five aircraft, which could be either the EMBRAER 190 or the EMBRAER 195. The total value of the deal comes to US$ 187.5 million, and could double, if all options are confirmed for the EMBRAER 190. Deliveries are scheduled to begin in the first half of 2009.

"NIKI's decision to select the EMBRAER 190 to complement its existing fleet of narrowbody jets is great news, indeed," said Mauro Kern, Embraer Executive Vice President, Airline Market. "The company is true to its low-cost airline philosophy and is paying special attention to the economic advantages our jets can deliver. The decision is even more remarkable when we consider the highly competitive environment of the low-cost segment in Europe. "

NIKI's aircraft will be configured with 112-seats, a layout made possible by the carrier's selection of new "slim seats", which are thinner, in terms of the amount of material used, than the seats usually installed on the E-Jets, but offer comparable comfort to passengers.

Benefiting from the unparalleled efficient operating cost of the E-Jets, as well as low fuel burn and emissions levels, the low-cost carrier will be the first in Europe to combine two different aircraft sizes in its fleet: the 100-seat EMBRAER 190, optimized for mid-density routes, and conventional narrowbody aircraft seating 150 to 180.

"Operating an airline in such a challenging environment as we have today requires that you select the best aircraft to fulfill your mission," said Niki Lauda, founder and President of NIKI Luftfahrt GmbH. "The airline market has been dramatically evolving, lately, and, thanks to the economical performance of the EMBRAER 190, we can now afford to operate two different aircraft in our fleet. This is why we have opted for the E-Jet. The EMBRAER 190 is not only the perfect aircraft for right-sizing our fleet, but it also combines excellent economics with a high level of comfort that our discerning passengers have come to expect when they fly NIKI."

The EMBRAER 190 will serve NIKI's existing European network, operating from Vienna and Innsbruck, Austria. The airline also plans to fly the aircraft on new intra-European routes.