Porter Airlines Finalizes Sale – Leasebacks For 19 Embraer E195-E2s

Porter Airlines yesterday confirmed that it is finalizing the sale and leaseback of up to 19 Embraer E195-E2 jets. The carrier is the North American E2 launch customer, and it is looking to take delivery of these new units between 2022 and 2023.

Porter is looking to put the E2’s spacious cabin and quiet experience to good use across its network. Photo: Embraer

Returning with style

The Canadian regional carrier’s operations were significantly impacted by the conditions of the pandemic. The long-term flight restrictions across Canada forced the airline to postpone its return to the skies several times. Nonetheless, after 18 months on the ground, Porter commenced operations once again in September. It then resumed all of its year-round destinations last month.

Despite the challenges and flight suspensions, Porter didn’t slow down its planning for the future. In the summer, it revealed that it wanted to order up to 80 E2s. The carrier placed an order for 30 units with options for another 50.

As part of this agreement, the airline has now confirmed that it entered into agreements for sale and leaseback financing of up to 19 planes. Azorra Aviation Holdings and Falko Regional Aircraft will provide five units each. Meanwhile, another four will come from Elevate Capital Partners.

There are also options for another five E195-E2s with Azorra. Photo: Porter Airlines

Excited management

Porter’s leadership is ecstatic about this move. Overall, the carrier is looking to form a long-term connection with these leasing partners.

“Finalizing leasing agreements with three high-quality partners in Azorra, Falko and Elevate demonstrates confidence in Porter’s plan to grow its network throughout North America using the exceptional E2 aircraft,” shared Porter executive vice president and CFO Jeffrey Brown, in a company statement.

“We are establishing foundational relationships with these experienced lessors and look forward to working together over the long term.”

Embraer notes that these E2s will be seen on busy business and leisure routes across Canada, the US, Mexico, and the Caribbean. Photo: Porter Airlines

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A welcome addition

Porter commenced operations in October 2006 and flies to numerous airports across Canada. Along with its Billy Bishop Toronto City Airport base, other focus sites are Montréal–Trudeau International, Ottawa Macdonald–Cartier International, and Halifax Stanfield International.

The Dash 8 is currently the only type in the airline’s fleet, with 29 units in the holdings. Notably, the carrier’s Q400s hold the world’s lightest aircraft seats following a refurbishment this year. This aircraft is a master of operating in sensitive conditions and remote regions. However, it will soon be joined by another regional powerhouse.

The E195-E2 is a new addition to the market. The first delivery was to Azul via lessor Aercap on September 12th, 2019. It is the largest of the E2 family and has been produced to optimize efficiency on high-density routes. Overall, it is billed to offer a double-digit lower fuel consumption when against present-generation E-Jets. Porter will be looking to benefit from this efficiency in the chapter ahead.

What are your thoughts about Porter finalizing the sale and leaseback of up to 19 E195-E2 aircraft? Do you think this is a good move for the carrier? Let us know what you think in the comment section.

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