Embraer and Republic Airways, the world’s largest E-Jet operator, have signed a contract for a firm order of 100 E175 jets. This agreement was announced as a Letter of Intent (LoI) at the Farnborough Airshow, in July. The firm order has a value of USD 4.69 billion, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog. Deliveries will start in 2020.
The contract also includes purchase rights for an additional 100 E175s, with conversion rights to the E175-E2, bringing the total potential order up to 200 E-Jets. With all purchase rights being exercised, the deal has a list price of USD 9.38 billion.
“What a great way to finish this very hectic year for us at Embraer,” said John Slattery, President & CEO, Embraer Commercial Aviation. “As we promised in Farnborough, we are now closing a very important contract with Republic for these additional E175’s, continuously growing our long-standing partnership.”
“This order represents another significant advance in our long-standing partnership with Embraer, and it positions Republic to compete for the more than 300 regional aircraft we anticipate being up for bid during the next five years as existing flying agreements expire with our global codeshare partners”, said Bryan Bedford, Republic’s President and CEO.
Republic Airways and Embraer established their partnership in 1999 when one of its former subsidiaries, Chautauqua Airlines, took delivery of its first ERJ 145 in the livery of US Airways Express. Today, Republic Airline operates a fleet of nearly 190 Embraer 170/175 aircraft and provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express.
Including this new contract, Embraer has sold more than 535 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.
Embraer is the world’s leading manufacturer of commercial jets with up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged almost 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.
Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Dec 21, 2018