LARA spoke to Angus von Schoenberg, Industry Officer at TrueNoord, about how the once-clear boundary between regional jets and mainline narrowbodies is rapidly dissolving.
The Embraer E2 family and Airbus A220 are no longer niche players – they are emerging as core assets in airline fleets. Against this backdrop, TrueNoord’s decision to place its first forward order with Embraer marks more than a routine fleet move. It signals a strategic alignment with shifting economics, evolving demand, and a changing competitive landscape. TrueNoord’s Industry Officer, Angus von Schoenberg, explains the regional lessor’s move.
A new economic strategy
“For decades, airline economics followed a predictable rule: bigger aircraft meant lower unit costs. The E195-E2 and A220-300 have disrupted that logic,” says Von Schoenberg.
“These so-called “crossover jets” or “small narrowbodies” deliver trip costs significantly below larger narrowbodies while narrowing the cost-per-seat gap to near parity with aircraft like the A320neo. That shift gives airlines something they’ve rarely had before – flexibility without a major cost penalty. So, instead of chasing volume, carriers can now match capacity more precisely to demand, reduce exposure on marginal routes and increase frequency to capture higher-yield passengers. In practical terms, filling 136-148 seats is far less risky than filling 180+. For airlines navigating volatile demand, that matters.”
Performance without compromise
He goes on to explain that historically, regional aircraft came with trade-offs – limited range and a subpar passenger experience. However, that’s no longer the case. Today’s crossover jets can cover missions of up to five hours (E2), access constrained airports like London City, offer competitive onboard comfort, including quieter cabins, sufficient overhead baggage capacity and improved seating layouts.
Passenger perception has also shifted. With fewer middle seats (or none at all on the E2), these aircraft often outperform expectations – an increasingly valuable differentiator.
Demand is rising – but supply is tight
Despite growing interest, the crossover segment remains constrained explains Von Schoenberg. “Production realities are a major factor, Embraer lacks the industrial scale of Airbus and Boeing and the A220, while branded Airbus, relies on a distinct supply chain. Delivery slots for both aircraft types are limited – often stretching toward 2030.”
At the same time, he says, concerns around Pratt & Whitney’s GTF engines continue to influence decision-making. While actual grounding rates for E2 and A220 fleets are notably lower than for larger GTF-powered aircraft, perception still lags reality, slowing broader adoption.
Why TrueNoord has chosen the E2
“TrueNoord’s move reflects a blend of timing, market positioning, and portfolio strategy,” divulges Von Schoenberg. “A220 delivery slots are scarce, and competition among lessors is intense. By contrast, despite a spate of orders over the last year, the E195-E2 still offers earlier access and fewer competing lessor positions – an important factor for speculative orders.
“Compared to other narrowbodies, the E2 is under-represented in leasing portfolios. This creates an opportunity for lessors, like TrueNoord, to step in where supply is limited but demand is rising.
“Although both aircraft are a natural replacement for 737-700s and A319s, the global Embraer fleet includes over 500 ageing E1 aircraft – many now beyond 12 years of service. For operators, the E2 is the natural successor, with minimal transition friction. Pilot conversion takes just a few days, preserving operational continuity.
“Finally, TrueNoord already has deep exposure to Embraer’s earlier generation of aircraft. That familiarity reduces risk and strengthens its ability to identify placement opportunities.”
A strategic, not exclusive, bet
“TrueNoord’s Embraer order is not a rejection of Airbus or other OEMs,” emphasises Von Schoenberg. “Rather, it’s a targeted move based on current market conditions.”
The broader message is clear: the small narrowbody segment is no longer secondary – it’s strategic.
With improving economics, strong replacement demand, and limited supply, crossover jets are carving out a central role in fleet planning. For lessors willing to move early, the window of opportunity remains open – but not indefinitely.
Von Schoenberg concludes: “TrueNoord isn’t just ordering aircraft – it’s positioning itself at the intersection of flexibility, efficiency, and a reshaped narrowbody market.”