Estonian Air has signed a contract with Embraer to buy three E175 aircraft and one E190 to revamp its entire fleet of narrow-body and regional jets.
The national flag carrier of Estonia also plans to lease eight additional aircraft which include four E170s and four E190s under an agreement with third parties and leasing companies.
Estonian Air President, Tero Taskila, said: "We chose Embraer E-Jets to replace our current fleet of B737s and CRJs because the one family concept offers the capacity flexibility we need to pursue our immediate expansion and fleet modernisation objectives."
Taskila continued: "The aircraft will deliver a standard of in-flight experience that will keep us competitive and allow us to access new markets with lower risk than using larger jets."
"We have also been following with high interest the analysis that Embraer is conducting to launch a second generation of its E-Jets, using new engines, with possible entry into service around 2018."

US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEstonian Air reported that the first of four E170 aircraft, leased from Finnair, will begin service this month and the company will take delivery of the aircraft on firm order during the second half of 2014.
According to Embraer, the common crew qualification of all E-Jets models and complete parts commonality will enable Estonian Air with maintenance and crew resource cost savings.
The acquisition of a range of aircraft sizes will allow the airliner to ideally match capacity to various market demands and is expected to double-daily flights between Tallinn, the country’s capital, and main European cities.
Embraer Commercial Aviation president, Paulo Cesar de Souza e Silva, said: "We continue to see tremendous potential for carriers operating throughout Europe, as they replace their older-generation aircraft and embrace the concept of right-sizing."
Silva continued: "Estonian Air will adopt the E-Jets philosophy, and I know that they will very quickly begin to see all the benefits in economics and flexibility this family of aircraft brings."
Embraer said that the E-Jets for all new orders will be configured in a single class layout, with 76 seats for the E170s, 88 for the E175s, and 112 for the E190s.
Embraer E-jets are currently flown or ordered by nine airlines which include Bulgaria Air, LOT Polish Airlines, Finnair, Air Moldova, Montenegro Airlines, Belavia, Dniproavia, Aerosvit and Air Astana.
Image: The four ordered E-jets will replace the Estonian airline’s current fleet of B737s and CRJs. Photo: Embraer