Embraer S.A. has signed an agreement with Japan’s Fuji Dream Airlines (FDA) for a firm order of three E175s with options for an additional three aircraft of the same model. This brings the total potential order to six E175s, with an estimated value of USD 258.6 million based on 2014 list prices, if all options are exercised. This order was already included in Embraer’s 2014 second quarter backlog as an “undisclosed” customer. The announcement was made today at the 2014 edition of the Farnborough International Airshow. Three E170s and five E175s are currently in operation with Fuji Dream Airlines.
“Embraer’s E-Jets tick all the right boxes that have been crucial to the success of Fuji Dream Airlines - efficiency, performance, exceptional economics and solid customer support that is second to none,” said Yohei Suzuki, the CEO and Chairman of Fuji Dream Airlines. “These technologically-advanced jets have proven themselves over the years and we are confident of its capability to help us profitably expand our network and enhance our frequency. The additions to our fleet will provide our customers greater flexibility and choices, as well as the superior comfort they have enjoyed on the E-Jets.”
The newly-ordered E175s will be configured in a single-class layout with 84 seats and will be equipped with the Autoland system to perform CAT III approach and landing in limited visual conditions. The new E175s will also feature recent aerodynamic enhancements introduced by Embraer, such as a new wingtip and other technical improvements that reduce fuel burn.
“The order for these E-Jets follows FDA's prudent philosophy of managing capacity as the airline adds new cities and frequencies,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. “With the technical improvements we have made to the E175s, FDA will realize new economic benefits that will help it continue to grow in Japan's highly competitive domestic market.”
In addition to these orders, FDA and Embraer have also signed an extension of the Pool Program to cover its fleet of E170s and E175s, including these new orders. The program covers the advance exchange and repair management for more than 300 important parts of the aircraft.
Created in 2007, FDA started operations with two E170s. Over the last five years, its all-Embraer fleet has quadrupled. FDA’s fleet is instantly recognizable by its brightly coloured aircraft, some of which are painted green, pink, yellow and purple.
With aircraft based in Nagoya and Shizuoka, FDA links twelve secondary cities in Japan where demand is growing, such as Fukuoka, Sapporo and Hanamaki. Operating almost 50 flights each day, the airline has carried over 2.4 million passengers to date. FDA is part of the Suzuyo Group, which owns a full-flight simulator to provide pilot and fleet engineering training for its staff.
Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Jul 15, 2014