Embraer and Republic Airways Sign USD 4 Bn Contract
- for up to 94 E175 Jets
Embraer and Republic Airways Holdings Inc., operator of the largest E-Jets fleet in the world, announced today a contract for the sale of 47 EMBRAER 175 jets. The agreement also includes options for an additional 47 aircraft, providing a potential for 94 E175s, which could reach a total value of approximately USD 4 billion, in 2013 economic conditions, at list price.
The new aircraft will be operated by Republic Airlines, a Republic subsidiary, under American Eagle brand in the American Airlines’ regional network. The deal is subject to court approval which is expected to occur in the first quarter of 2013. The E175 will be featured in a dual-class layout, seating up to 76 passengers and the first delivery is scheduled for mid-2013.
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“It is significant that our long-time, valued customer Republic Airways – a true innovator in the regional transport business – is the first customer for the enhanced E175,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. “It’s a perfect example of how our investments in product development make our customers more competitive in their markets. The E175 is the most comfortable, technologically advanced and efficient aircraft in its class and it represents the best value for airlines because it also delivers the lowest total operating cost.”
As the leader in the 70 to 120-seat jet segment, Embraer continues to invest in the E-Jets family, which is flown by some 60 airlines from 40 countries. The Company has begun implementing a series of enhancements to the current generation of E-Jets, including new wingtips, systems optimization and aerodynamic refinements that will lower fuel burn by up to 5%. Republic will be the first customer to receive E175 aircraft with these enhancements. Longer maintenance intervals and component improvements will increase aircraft productivity and lower maintenance costs.
“We are thrilled that American has selected Republic and the Embraer E175 to expand their network with large regional jets,” said Bryan Bedford, Republic Chairman, President and CEO. “The Embraer E175 is an outstanding aircraft and the interior design American has selected will provide a world-class, seamless product for their customers flying on Republic.”
“This is a significant milestone in our company’s history,” said Chuck Schubert, American’s Vice President – Network Planning. “Establishing a large regional jet fleet has long been part of our business plan and this agreement is another example of how we are executing on that plan in a way that benefits our business and our customers. We will offer more flights at the right intervals throughout the day in key markets while providing more opportunities for customers to travel in the First Class cabin to key business markets.”
Source : Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)