September 8, 1998


American Eagle Tops Embraer Order List

By Rebecca Rayko,
Associate Editor

Farnborough, England - Embraer announced a round of orders today, with the largest one by far coming from the regional arm of American Airlines.

American Eagle placed the largest order to date for the Embraer EMB-135 37-seat regional jet with 75 firm orders plus 75 options. The transaction value, although not officially disclosed, is said to be around $2 billion including spare parts and services.

Eagle will use the smaller capacity regional jets as turboprop replacements as the carrier phases out its fleet of Saab 340s and ATR 42/72s. It will also use the aircraft to enter new markets out of its Dallas/Fort Worth hub. Eagle said it will not be limited by scope clauses with the EMB-135 because they do not fall within the 45-70 seat jet category.

Deliveries will bbegin next July and run through 2004. Eagle currently operates 12 ERJ-145s and will have eight more in service by the year end. Another 22 ERJ-145s will be delivered to Eagle by next November for a total of 42 of the 50-seaters.

Rolls-Royce was another winner in the deal. Its AE 3007 engines will power the ERJ-135s. The 150 engine-deal is worth $500 million for the sole powerplant of the aircraft. Rolls will also receive another $50 million from the orders announced just prior to the Eagle order at Tuesdayıs press conference.

Luxair increased its order for the ERJ-145 to seven firm and two options, from two firm and two options placed last year. Luxair will dub its planes the Eurojet as it intends to link Luxembourg with other major European cities with its newly expanded service.

National Jet Systems of Australia became the launch customer of the ERJ-145 in the region today as it announced orders for four of the regional jets. Deliveries are scheduled for November and December this year. Embraer established a support facility in Melbourne, which was critical in the companyıs decision to order the aircraft, it said.

Flandre Air, the European launch customer of the ERJ-135, exercised its options for an additional two aircraft today, increasing the original eight firm and 12 options to 10 firm plus 10 options.



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