MIAMI – American Airlines has signed a firm purchase agreement for 15 Embraer E175 aircraft, valued at $705 million, based on current list prices, adding up to the 30 planes that it ordered in 2018.
Deliveries are to begin from 2020 and will be sent to subsidiary Envoy Air, which will operate the aircraft with a two-class configuration, offering 12 seats in First Class and 64 in Economy.
Charlie Hills, Director of Sales and Marketing for North America Embraer Commercial Aviation commented on the value of the E175. “This new order from American Airlines shows the value that airlines follow banking on our successful E175 jet.”
“We are fully committed to providing fleet solutions that have a positive impact end, and our E175 is responsible for leadership with over 80% share of the US market,” he said.
Since January 2013, Embraer has sold more than 435 units for the E175 model in North America alone, obtaining an 80% market share in the segment of up to 76 seat jets.
Currently, Envoy operates an all-E175 fleet of 44 aircraft. In October 2017, the airline signed a firm order for ten Embraer E175 jets valued at US$ 457 million.
It is interesting that the airline hasn’t opted for the E2 variant yet, likely because Embraer might be offering a better deal in terms of price per unit.
Also, the fact that the airline operates an all-E175 fleet, suggests that it might want to keep standardization rather than innovation.
Overall, these are excellent news for Embraer, keeping its E1 production alive as the E2 gathers momentum.