Star Air Eyes $1 Billion Embraer Jet Order to Fuel Regional Expansion

Star Air, India’s largest regional airline, is in advanced discussions with Brazilian aircraft manufacturer Embraer SA to purchase up to 20 new aircraft, according to a report by The Economic Times. If finalised, the potential deal could be valued at around $1 billion, based on the current list prices of the aircraft under consideration. However, discussions are still ongoing, and there is no certainty that the negotiations will result in a confirmed order.

People familiar with the matter said the proposed agreement could follow a split structure, with 10 aircraft as firm orders and an additional 10 aircraft as options. Option aircraft can be converted into confirmed purchases at a later stage, depending on the airline’s growth plans and market conditions. If the deal goes through, deliveries are expected to begin in the financial year ending March 2028 (FY28).

The aircraft being evaluated belong to Embraer’s E2 family, which includes modern narrow-body regional jets designed for short to mid range routes. These jets are widely used by regional airlines due to their fuel efficiency, lower operating costs, and ability to serve smaller airports. Star Air already operates leased Embraer E145 and Embraer E175 aircraft, and the airline is expected to continue flying these leased planes until any new aircraft are delivered.

This potential deal would mark an important shift for Star Air. According to the report, this would be the airline’s first direct aircraft purchase from Embraer, rather than relying on leased aircraft. Moving from leasing to ownership is often seen as a long-term strategic step, signalling confidence in future demand and network expansion.

Star Air is owned by the Sanjay Ghodawat Group, a diversified Indian conglomerate with business interests across consumer products, retail, education, and mining. The group entered aviation with a focus on regional connectivity, operating flights between smaller cities that are often underserved by larger airlines. The potential Embraer order aligns with this strategy, as E2 jets are well-suited for connecting tier 2 and tier 3 cities.

The discussions also come at a time when India’s aviation market is expanding rapidly. The Economic Times notes that India is currently the third-largest domestic aviation market in the world, behind only the United States and China. The country is also pushing for a major expansion in regional connectivity, with plans to significantly increase the number of operational airports across the country in the coming years.

A successful Embraer deal could help Star Air capitalise on this growth by adding new capacity and improving fleet efficiency, allowing it to operate more routes and serve emerging regional hubs. Regional jets like the E2 family play a critical role in making short-haul routes commercially viable, especially where passenger volumes are still developing.

In terms of official responses, Star Air stated via email that it “continues to evaluate opportunities to expand and upgrade its fleet.” On the other hand, an Embraer spokesperson declined to comment on the potential order, reflecting the preliminary nature of the discussions.

Overall, while the negotiations are still at a non binding stage, the proposed $1 billion Embraer jet purchase highlights Star Air’s ambitious growth plans and underlines the strong momentum in India’s regional aviation sector.