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Embraer books SkyWest deal worth up to $8.3 billion

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Staff writer ▼ | May 22, 2013
Embraer and SkyWest announced a firm order for 40 Embraer 175 aircraft. The agreement includes options for up to 200 airplanes which would value the total order at $8.3 billion.
Embraer and SkyWest
Embraer and SkyWestEmbraer and SkyWest announced a firm order for 40 Embraer 175 aircraft. The agreement includes options for up to 200 airplanes which would value the total order at $8.3 billion.


SkyWest will operate the aircraft under a Capacity Purchase Agreement (CPA) with United Airlines. Another 60 firm orders are reconfirmable aircraft, which are subject to SkyWest being awarded CPA agreement contracts with major U.S. airline partners. In addition to that, the agreement includes options for another 100 E175s, taking the total order potential up to 200 airplanes.

The firm orders for the first 40 aircraft will be included in Embraer's 2013 second quarter backlog. This sale is in addition to the contract signed by Embraer with United Airlines for 30 firm and 40 options for E175 jets.

If all 100 firm orders are exercised, the order has an estimated value of $4.1 billion at current list prices, representing one of the most significant orders in each company's histories. SkyWest plans to configure the E175s in a dual-class 76-seat layout, with the delivery of the first aircraft scheduled for the second quarter of 2014.

"This is truly a milestone order for Embraer. As our largest Brasilia and ERJ operator, SkyWest has now selected the enhanced E-Jet for their fleet, validating their confidence in Embraer and recognizing the tremendous capabilities of the E175 as the best aircraft in its class," said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation.

SkyWest, based in Utah, is the largest regional airline group in the world and is the parent company of SkyWest Airlines and ExpressJet Airlines Over 40 EMB 120 Brasilias continue to fly in the SkyWest Airlines network, primarily in the western United States. ExpressJet Airlines operates 249 aircraft of the ERJ 145 family and is the largest ERJ operator in the world.

"We have enjoyed our partnership with Embraer since the 1980s, and now it is extremely rewarding to be placing this significant order for E175s. We are confident the E-Jet will serve our partners and passengers well, with greater cabin comfort and with the best economics in its class," said Jerry Atkin, chairman and CEO of SkyWest.


 

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