Brazilian aircraft manufacturer Embraer and Switzerland-based M1 Travel Ltd. have just announced a contract for five Embraer 190 E-Jets, with options for five more of either the same model or the bigger Embraer 195, depending on market demands.

M1 Travel Ltd is a subsidiary of M1 Group and one of the largest shareholders of Geneva-based Flybaboo SA.

The first three Embraer 190s, with deliveries starting in 2008, will be leased by M1 to Flybaboo. The total value of the deal, if all options are exercised, could reach US$ 355 million, at list prices.

The aircraft will be equipped with leather seats, and M1 Travel Ltd. has the option to fit them with a state-of-the-art in-flight entertainment (IFE) system.

The company has also selected the Steep Approach option that will enable them to operate out of London City Airport and will also allow operation out of Switzerland's Sion Airport, as well as Lugano, Switzerland, and Florence, Italy, all requiring airplanes with special performance capabilities.

All of the Embraer 190s leased to Flybaboo SA will support, according to the Brazilian manufacturer, the airline's current development, as well as help it reach new destinations and better serve its market.