Canada’s Porter Airlines Inc. is eying a second phase of growth on strong demand and weakened competition as it beefed up an order for Embraer SA regional jets, adding 20 more aircraft in a US$1.56 billion deal at the Farnborough International Airshow.

Porter Chief Executive Officer Michael Deluce said in an interview Tuesday that the deal would complement a new round of expansion, citing a rebound in demand for travel in Canada after the pandemic.

“We are seeing a very strong rebound in demand in Canada right now,” said Deluce. “Certainly for Porter, we’ve seen WestJet make announcements of a strategic shift out of eastern Canada and focusing on western Canada, this is coming together as a nice set of circumstances,” he said, with reference to one of Porter Air’s competitors.

Porter’s total buy-in is now for 50 E195-E2s and it has the purchase rights for another 50 more. The total value of the deal if all options are exercised is US$7.4 billion, though large transactions typically come with significant discounts. 

The deal also bolsters Brazil-headquartered planemaker Embraer, which aditionally announced an order from Alaska Airlines Inc. for eight aircraft and 13 options.