Expanding airline

, one of

's leading low-cost airlines, recently announced an agreement with

for the purchase of 14 Embraer 195 aircraft plus options on an additional 12.

Deliveries are set to begin in August 2006 and continue through to November 2007. The total value of the firm contract at list price is $470 million, rising to $870 million if all options are converted.

"The Embraer 195 will replace our BAe 146 fleet,” commented Jim French, Chairman and Managing Director of Flybe. “It completes our fleet rationalisation strategy commenced in 2003 and will give us the youngest fleet in the airline sector. It also means that the business has addressed the strategic question of how to replace the 146 and provide a ten-year platform for profitable growth.”

Fitted with single Head-up Guidance System (HGS) and configured to seat 118 passengers, the aircraft is intended be used extensively within Flybe's existing and expanding network.

Embraer is currently developing an entirely new family of aircraft for the commercial aviation market. The new product line comprises the Embraer 170, 175, 190 and 195 jets. Embraer says it expects its new commercial jet family to win a significant share of the still untapped market for aircraft in the 70- to 110-seat range.