Embraer and low-cost carrier Scoot inked an agreement on Tuesday at the Singapore Airshow for the Embraer Collaborative Inventory Planning (ECIP) program—a customized spare parts inventory management initiative tailored to lower customers' operational costs by optimizing inventory levels.
The contract supports Scoot’s incoming fleet of nine E190-E2 commercial aircraft and accompanies Embraer’s pool program, which provides access to component exchanges and repair services for more than 300 parts. The pool program supports more than 60 airlines worldwide.
A unit of the Singapore Airlines Group, Scoot is the first ECIP customer in the Asia-Pacific region and the launch carrier for the E2 jets in Southeast Asia. The program serves to minimize customer disbursement as the Brazilian jet maker takes on the majority of the inventory investment. That, in turn, drastically lowers the airline’s investment cost.
Operators expect to enjoy greater cashflow predictability as the ECIP program covers fixed yearly pricing under its scope. Employing data-driven analysis and advanced software, recommendations for weekly ordering are based on the operator’s usage of parts.
“Our continued partnership with Embraer is a testament to our commitment to deliver optimal performance with the new E190-E2 fleet," said Scoot chief operating officer Ng Chee Keong in a written statement. "As we anticipate the arrival of our first Embraer jet in the near future, this strategic arrangement will help ensure operational efficiency.”
“Embraer’s wide suite of services is built on understanding and anticipating the needs of our airline customers in a very dynamic environment,” added Carlos Naufel, president and CEO of Embraer Services and Support. “We thank Scoot for their trust in us as we work toward the operations of their fleet of E190-E2s.”