It seems that Santa loves the Brazilian sunshine and has visited San Jose dos Campos three days in a row.
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 LoI at the Farnborough Airshow. The firm order has a value of $4.69Bn, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog. Deliveries start in 2020.
The contract 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 $9.38Bn. Note that E2 conversion right- scope clause change option is included, just in case, even if it’s a long shot for now.
“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.” John spent some time with us at Farnborough talking about these deals.
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.
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.