U.S. regional carrier Horizon Air has signed up with Embraer for the OEM’s Embraer Collaborative Inventory Planning (ECIP) system.

Seattle-based Horizon, which operates as the regional arm of Alaska Airlines, will now become a participant in Embraer’s customized expendables spare parts inventory management program, which aims to help carriers reduce operational costs by optimizing inventory levels.

The agreement will support Horizon’s 41 Embraer E175s operating from the company’s hub in Portland, Oregon, which is also the airline’s primary maintenance base.

The contract includes coverage for nine further E175s scheduled to be delivered, giving a total of 50 aircraft to be covered by the agreement. All the jets are flown by Horizon Air in Alaska Airlines colors. Horizon serves around 50 cities up and down the U.S. West Coast.

“We are very pleased to welcome Horizon Air to the Embraer Collaborative Inventory Planning,” Embraer Services & Support president and CEO,  Carlos Naufel said.

“ECIP was designed to help our customers gain efficiency and reduce inventory costs in all operations. This is even more important for airlines with large fleets and fast growth like Horizon Air.”

Under an ECIP agreement, most of the inventory investment is undertaken by Embraer, reducing substantially the investment required by airlines. Additionally, fixed yearly pricing for each part allows customers to balance costs more precisely at guaranteed performance levels.

The operation is data-driven, with a weekly ordering recommendation based on customer usage and stock level data that is created utilizing advanced software and Embraer planning experience shared collaboratively.