Austrian budget airline NIKI Luftfahrt has signed a contract with Brazilian aircraft manufacturer Embraer for up to 10 aircraft.
The deal, worth 187.5 million dollars (117 million Euros) in total, is part of the airline’s plans to use smaller, more efficient aircraft in the face of soaring kerosene prices.
The airline’s owner, former Austrian racing driver Niki Lauder, said whilst visiting the Farnborough Air Show that the airline wants smaller aircraft than it currently uses to help it serve lower cost destinations more easily.
He said, "I am very happy with this decision and I think it's the right one for us in these difficult times."
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, 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, 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.
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 dollars 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.