American Airlines buys 90 jets from Embraer, Bombardier

Image
AFP Washington
Last Updated : Dec 12 2013 | 10:57 PM IST
American Airlines kicked off its freshly minted status as the world's largest carrier today with an aggressive order for USD 3.9 billion worth of regional jets from Brazil's Embraer and Canada's Bombardier.
Three days after completing its merger with US Airways, the new American said it had inked deals to buy 30 CJR900 NextGen aircraft from Bombardier, and 60 Embraer E175s.
Bombardier said its deal was worth USD 1.42 billion, while Embraer put a USD 2.5 billion value on its order.
American also has options to buy an additional 40 CJR900s and 90 E175s.
American said the 76-seat regional jets ordered will replace less efficient 50-seat jets it currently operates on short- and medium-haul flights.
They will all be flown under the American Eagle regional brand.
The CJR900s, which will be delivered beginning in the second quarter of next year, will be configured with 12 first-class seats, 32 "main cabin extra" seats and 32 regular seats, American said.
The E175s, the first of which will arrive in the first quarter of 2015, will have 12 first-class, 20 main cabin extra and 44 regular seats.
All of the aircraft will be powered by General Electric CF34-8 engines, American said.
"Now that we've closed our merger with US Airways, we can deliver a top-tier regional product that offers a first-class cabin, main cabin extra and in-flight wi-fi -- important elements of an improved flying experience for our customers," said Kenji Hashimoto, American's senior vice president for regional carriers.
The new aircraft "will greatly improve economic efficiencies by lowering operating costs," he said in a statement.
Including this latest order from American Airlines, Embraer, the world's third-largest commercial aircraft manufacturer behind Boeing and Airbus, said it has received orders and options for more than 700 E-jets from US airlines this year.
Paulo Cesar Silva, president and chief executive of Embraer Commercial Aviation, hailed the "remarkable order" from American.
"American achieved impressive results with the ERJ145 aircraft family, and we are sure that will continue with the E175," he said.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 12 2013 | 10:57 PM IST

Next Story