Embraer Gets $2.1 Bln Order From Republic Airways For 50 E175 Jets

(RTTNews) - Brazilian aircraft maker Embraer S.A (ERJ) said Wednesday that Republic Airways Holdings Inc. (RJET) has signed a firm order for the purchase of 50 E175 aircraft. The value of the firm order, estimated at $2.1 billion based on 2014 list prices, will be included in Embraer's 2014 third-quarter backlog.

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.

Embraer noted that the contract is in addition to the order signed by Republic Airways in January 2013 for 47 firm and 47 option E175s, of which 34 have already been delivered. In addition to the new order, Republic Airways maintains 32 options for E175 aircraft.

Embraer noted that the transaction is in connection with the transfer of Q400 turboprop airplanes currently operated by Republic Airlines to UK carrier Flybe Limited.

Concurrently, Flybe and Embraer have agreed to reduce the outstanding order for 24 E175 aircraft the airline has on order backlog by 20 aircraft. Therefore, the net increase to Embraer's backlog in the third quarter will be 30 E175 jets.

ndianapolis, Indiana-based Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The company was one of the first U.S. carriers to fly Embraer E-Jets, operating its first E170 aircraft in 2004.

With this new order, the Republic Airways E-Jet fleet will consist of 72 E170 aircraft and 151 E175 aircraft for a total of 223 E-jets. Republic Airways is also a long-time customer of the ERJ 145 regional jet family, with 41 flying as Delta Connection aircraft.

ERJ closed Tuesday's trading at $39.89, down $0.08 or 0.20 percent on a volume of 1.11 million shares. RJET closed Tuesday's trading at $10.27, up $0.05 or 0.49 percent on a volume of 539,557 shares.