USA: American Airlines Orders For 15 Embraer E175s Jets

Embraer and American Airlines Inc. signed a firm order for 15 E175 jets with a 76-seat configuration.

The contract has a value of USD 705 million, based on current list prices, and will be included in Embraer’s 2018 second-quarter backlog.

Deliveries will take place in 2019 between March and November.

Combined with the airline’s three previous orders for the E175, this new contract results in a total of 89 E175s for American Airlines.

The most recent order took place in October 2017 for ten aircraft.

We are thrilled that the E175 continues to be the right solution for American.

This is American’s fourth order for the E175 since 2013 and their repeat order demonstrates how well the aircraft serves their business needs and the confidence they have in our platform, said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation.

American Airlines selected Envoy, a wholly owned subsidiary of American Airlines Group, to operate the 15 aircraft, which will be configured with a total of 76 seats, being 12 in First Class and 64 in Main Cabin, including Main Cabin Extra seats.

Including this new contract, Embraer has sold more than 400 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.

Since entering revenue service, the E-Jets family has received more than 1,800 orders and over 1,400 aircraft have been delivered.

Today, E-Jets are flying in the fleet of 70 customers in 50 countries.

The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.


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BRAZIL: Azul Brazilian Airlines lauches E195-E2

Embraer announced that Azul Brazilian Airlines, the largest operator of the E195s current-generation in the world, will be the launch operator of the E195-E2.

Azul’s contract with Embraer is for up to 50 aircraft, being 30 firm orders and 20 purchase rights.

“Azul played a key role in the E195-E2 development, actively participating in the design specification of the aircraft and helping Embraer design the most efficient single-aisle aircraft in the market today,” said John Slattery, President & CEO, Embraer Commercial Aviation.

The significance of having Azul aboard the E2 Program and to now identifying them the launch operator can be summarized in two words: trust and partnership.

Currently, the Brazilian airline has a total of 73 E-Jets in service.

The E195-E2s will be configured by Azul in a comfortable single-class layout with 130 seats and the aircraft will entry into service with the airline in the first half of 2019.

The E-Jets E2 backlog has 275 firm orders, in addition to Letters of Intent, options and purchase rights covering another 415 aircraft, totaling 690 commitments from airlines and leasing companies.

Chinese Startup Airlines To Be Limited To Smaller Aircraft

Embraer Commercial Aviation CEO John Slattery believes a new rule, which initially limits Chinese startup airlines to smaller aircraft, could create opportunities for the Embraer E190.

Speaking on the sidelines of the European Regions Airline Association General Assembly in Madrid, Slattery said the Civil Aviation Administration of China (CAAC) issued a rule during the G20 meeting in early September that took immediate effect. This regulation restricts the size and number of aircraft that new air operator’s certificate (AOC) holders can operate.

“The restrictions prevent us from selling new Embraer E195s and restrict Bombardier from selling the CSeries [to Chinese startups], but our E190 is absolutely in the sweet spot of the policy. We’ve got very good penetration of the Chinese market with the E-190—it’s a recognized asset with very good support—so we’re hopeful that China will deliver a significant amount of activity for new and pre-owned aircraft,” Slattery said.

He added that there are currently around a dozen Chinese airline business plans that might result in an AOC application. “I’d be hopeful that we can capture at least half of those as Embraer customers,” he said. “We do think there will be a particular surge of activity in the Chinese market in the coming months.”

Over the 2016-35 period, Embraer is forecasting demand for 6,400 deliveries worldwide in the 70- to 130-seat segment, with 26% of that total—or 1,690 aircraft—destined for the Asia-Pacific region.