Embraer S.A. (BM&FBOVESPA: EMBR3, NYSE: ERJ) and SkyWest, Inc. (SkyWest), have confirmed a firm order for seven E175 jets. The aircraft will be flown by SkyWest Airlines under a Capacity Purchase Agreement (CPA) with Alaska Airlines. The value of the firm order, which will be included in Embraer’s 2014 fourth-quarter backlog, is estimated at USD 301 million, based on 2014 list prices.
These aircraft are part of SkyWest’s previous order for 100 (40 firm and 60 reconfirmable), E175 current generation E-Jets – with an additional 100 options – placed in May 2013, taking the firm order number to a total of 47. The E175s for Alaska Airlines will be configured with 76 seats including 12 First Class seats. Deliveries are schedule to begin in the second semester of 2015.
“This order confirmation reinforces the superior economics, performance and passenger appeal of the E175 in the U.S. market,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. “SkyWest's agreement with Alaska Airlines is a wonderful endorsement of the aircraft and adds a prestigious new operator to our list. In addition, the Embraer E-Jet will be introduced to passengers in a new region of the country.”
“We’re pleased to expand our relationship with Embraer,” said SkyWest, Inc. President Russell “Chip” Childs. “With 15 E175s already flying in the SkyWest network, we couldn’t be more pleased with the design and performance of these state-of-the-art E-Jets.”
SkyWest is the largest regional airline group in the world and is the parent company of SkyWest Airlines and ExpressJet Airlines. Both companies have long histories with Embraer and were early customers for the Embraer EMB 120 Brasilia turboprop aircraft. SkyWest Airlines operates a fleet of approximately 15 E175 and 39 EMB 120 Brasilia aircraft. ExpressJet Airlines operates 226 aircraft of the ERJ 145 family and is the largest ERJ operator in the world.
In a separate deal with Embraer, announced in June of 2013, SkyWest became the launch customer of the E175-E2, ordering 100 aircraft with 100 additional options, for deliveries beginning in 2020. As the leader in the 70 to 130-seat segment, Embraer continues to invest in the E-Jets family, which is flown by some 65 airlines from 45 countries.
Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Nov 25, 2014