Embraer reports that it signed a firm order for ten E175s with American Airlines. American is exercising purchase rights from its original contract with Embraer signed in 2013. This new order is in addition to the one placed in April for four aircraft; is valued at $457m, based on current list prices, and will be included in Embraer’s fourth-quarter backlog. Deliveries begin in 2018 and continue through mid-2019.  Combined with the airline’s two previous orders for the E175, this new contract results in a total of 74 E175s for American Airlines.

American selected Envoy, its wholly owned subsidiary, to operate the ten aircraft, which will be configured with 12 First Class, 20 Main Cabin Extra, and 44 Main Cabin seats, for a total of 76 seats.

Including this new contract, Embraer has sold more than 390 E175 jets to airlines in North America since January 2013, earning more than 80% of all orders in the 76-seat jet segment.

To provide some perspective, the chart shows how important the US market is for the active E175 fleet.

In terms of the global market, the E175 is crucial to success at Embraer.  It is, by far, their best seller.  And the USA is, by far, their best market.

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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.

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