September 17, 2014
Embraer and Republic Airways sign contract for 50 firm E175 jets
Embraer and Republic Airways signed a contract for the sale and purchase of 50 firm E175 jets. The value of the firm order, which will be included in Embraer’s 2014 third-quarter backlog, is estimated at US$2.1bn, based on 2014 list prices. The aircraft will be operated for United Airlines under the United Express brand. Deliveries are scheduled to begin in the third quarter of 2015 and extend until 2017. This contract is in addition to the order signed by Embraer and Republic in January 2013 for 47 firm and 47 option E175s – 34 of which have already been delivered. In addition to the new order, Republic maintains 32 options for E175s. This transaction is in connection with the transfer of Q400 turboprop airplanes currently operated by Republic Airlines to UK’s carrier Flybe. Concurrently, Flybe and Embraer have agreed to reduce by 20 the outstanding order for 24 E175’s the airline has on order backlog. Therefore, the net increase to Embraer’s backlog in the 3rd quarter will be 30 E175 jets.