MIAMI — Horizon Air and Embraer announced this morning a firm order for 30 E175 regional jets, with options for up to 33 additional aircraft. The estimated value of the deal is $2.8 billion based on current list prices if all options are exercised.
The new E175s will start arriving to the fleet in 2017, and deliveries will extend over a period of three years. These regional jets will complement the airline’s current fleet of Bombardier Q400 aircraft, which has roughly the same capacity than the E175 but with a shorter range. The E175s will enable Horizon to serve long and thinner routes, which do not have enough passenger demand to fill Alaska Airlines’ Boeing 737s.
“The E175s position Horizon for growth beyond our current West Coast destinations while providing better customer utility in the growing Alaska Airlines network,” said Horizon Air President, David Campbell. “This aircraft opens up tremendous new opportunities to fly to new places that would not have been feasible with our existing aircraft.”
Horizon Air will be flying the E175s for Alaska Airlines under a capacity purchase agreement (CPA) once the aircraft start arriving to the fleet. The new aircraft will replace 15 Q400s, due for return back to their lessors in 2018.
The aircraft will be configured with a three-class seating including 12 in First, 16 in Premium Class and 48 in Economy, and will include in-flight Wi-Fi and power outlets in all cabins.
“To be chosen by Horizon to expand their fleet with the E175, is a great honor for Embraer. It recognizes the great economics that this aircraft offers,” said Paulo Cesar Silva, Embraer Commercial Aviation president and CEO. “The Alaska Airlines brand is known for its high-standards of service, having received many awards for their superior customer services, which brings us even greater responsibility to deliver a state-of-the-art product, with the best cabin for passengers in the 76-seat jet segment.”