Continental
Exercises Embraer Options
Another day, another
Embraer order. Mauricio Bothelo, president and CEO of Embraer, was all smiles
again as he revealed that Continental has exercised options for an additional
25 EMB-145s. The new fleet will add to the original order of 25 announced
during last year's Farnborough show, bringing the total number of aircraft
scheduled to be delivered to Continental to 50. The deal is estimated to
be worth $750 million.

With 150 remaining options, Continental Express President David Siegel
remained optimistic that his airline will be able to exercise most if not
all of those options in the future. Siegel told the press they should "prepare
for this to be a regular event."
Throughout the conference, Siegel had nothing but praise for the 50-seat
aircraft and the company that builds them. From customers to crews, Siegel
said, "I can't tell you how overwhelmingly positive the reaction to
the aircraft has been."
As with the American Eagle contract announcement, Continental Express
also emphasized the overall quality of the plane as a key factor in their
decision. Continental pointed to the rigorous comparison tests performed
by American Eagle as proof of the EMB-145's superiority. While Continental
acknowledges, "We didn't have a chance to compare the CRJ to the 145,"
Embraer officials still contend it isn't a coincidence that two of the largest
regional airlines chose Embraer.

Embraer plans to simply tack the 25 additional aircraft onto the current
delivery schedule for it's launch customer, avoiding any interruptions in
the rate of delivery. However, Bothelo also announced plans to increase
production to accommodate all the new orders, going from the company's present
rate of 3 aircraft per month and gradually increasing to 6 per month by
May of 1998.
The converted options are for Embraer's new EMB-145 long range version
which incorporates the more powerful Rolls Royce Allison AE3007A1 engine.
Siegel noted the new engines, which provide increased performance for hot
climates and high altitudes, will "open up some new markets for Continental
Express." After the long range batch is delivered, Siegel says the
airline plans to evaluate the mixture to determine which version will be
included in additionally exercised options.
Continental Express also asserted that the new planes were for growth
purposes, but the company may consider replacement orders for turboprops
at a later date. Siegel mentioned Continental's continued interest in the
EMB-135, and said his airline is "encouraging Embraer to put together
a firm proposal." Continental is presently in talks with Fairchild
Dornier as well about supplying the airline with a 37-seat model. The airline
said they anticipate a decision on the smaller planes by the end of this
year.
Paris Daily Cover
Page | Contact AeroWorldNet
 |