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US airline closes 4bn dollars deal with Brazil’s Embraer for 40 commuter aircraft

Wednesday, May 22nd 2013 - 23:03 UTC
Full article 4 comments
The 76-seat E175 will replace the 50-seat commuter in US cities  The 76-seat E175 will replace the 50-seat commuter in US cities

United Airlines partner SkyWest Inc. agreed to buy more than 4 billion dollars of Brazil’s Embraer jets as new pilot contracts at the largest carriers allow commuter operators to fly bigger planes.

The accord comprises 40 firm orders for 76-seat E175 jets with two-class cabins that will be flown for United for 12 years, St. George, Utah-based SkyWest said in a statement.

The aircraft will be the first 76-seat regional jets in United Express’s fleet after parent company United Continental Holdings Inc. joined AMR Corp. American Airlines and Delta Air Lines Inc. in crafting labor agreements allowing the larger jets to be used that way. Regional airlines pay less, which reduces costs for the carriers.

“In this very competitive business of operating regional jet aircraft, we are appreciative to have been given the opportunity and we are committed to providing an outstanding level of service to United” SkyWest President Bradford Rich said in the statement.

The order also marks another win for Sao Jose dos Campos, Brazil-based Embraer after United agreed to buy 30 of the E175s in April and American and its regional partner Republic Airways Holdings Inc. agreed on an order of 47 Embraer E175 jets earlier this year.

Big airlines are seeking 76-seat jets as they retire aging single-class 50-seaters that guzzle fuel. The larger aircraft let them lower operating expenses and charge higher fares for business class tickets.

SkyWest also has a conditional purchase agreement for 60 more of the E175 jets pending operating agreements with other airlines, plus options for 100 more, Embraer said in a separate statement. That gives the whole order a value of 8.3 billion at list prices, though airlines typically get a discount.

The firm deliveries for United Express will begin in next year’s second quarter and run through mid-2015, SkyWest said.

Top Comments

Disclaimer & comment rules
  • Condorito

    It is fantastic that Brazil can compete at this level.

    May 22nd, 2013 - 11:14 pm 0
  • Math

    / Thanks privatization!

    May 23rd, 2013 - 03:11 am 0
  • GFace

    HUZZAH! After years of having to suffer from travel out of my home airport in CRJ 100s (aka the Barbie Dream Plane) and EMB 120's the dingleberries at Skywesst finaly reecognies that when “everyone is first class,” no one is! I have to travel with Skywest to my United and Delta hubs for years and I've enjoyed the 175s in both cabins into --other-- short jump destinations. Smart move and very long overdue. (They'll probably still continue to stick us with CRJ100 service though)

    May 23rd, 2013 - 07:16 am 0
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