EMBRAER S.A.: Alaska Air Group Orders Nine New E175 Aircraft for Operation with Horizon Air

Rhea-AI Summary

Embraer has secured a contract to sell nine E175 jets to Alaska Air Group, valued at USD 449.1 million. These jets will operate under a Capacity Purchase Agreement, further solidifying Embraer's presence in the regional market, where it holds an 85% market share for 70-90 seat aircraft. Alaska Air Group will also receive eight additional E175s through a commitment with SkyWest Airlines. Deliveries of the new aircraft are set to commence in 2022. This order is expected to enhance Alaska Airlines' capacity and support its growth strategy.

Positive

• Contract for nine E175 jets valued at USD 449.1 million strengthens Embraer's order backlog.
• Alaska Air's commitment to expand E175 fleet boosts regional capacity, supporting recovery post-pandemic.
• E175 recognized as backbone of North American regional market with an 85% market share.

Negative

• None.

SÃO JOSÉ DOS CAMPOS, Brazil, May 12, 2021 /PRNewswire/ -- Embraer (B3: EMBR3, NYSE: ERJ) has agreed the sale of nine new E175 jets to Alaska Air Group and its subsidiary Horizon Air. The E175 aircraft will fly exclusively with Alaska Airlines under a Capacity Purchase Agreement (CPA). The value of the contract, which will be included in Embraer's second-quarter backlog, is USD 449.1 million, based on current list prices.

"We have navigated through the pandemic and we're on a solid path to recovery. The E175 remains a key part of our strategy," said Nat Pieper, Alaska Airlines senior vice president of fleet, finance and alliances. "We're excited about growth in the years ahead, which has always been at the heart of Alaska's DNA. The E175 is a terrific plane to help us add new routes and frequencies, and to complement our mainline aircraft to meet fluctuating demand with the right capacity."

Alaska Airlines, a new member of the oneworld Alliance, currently has 62 Embraer E175 jets in their fleet, operated by Horizon Air and SkyWest Airlines. The 76-seat aircraft will be delivered in Alaska's livery and three-class configuration, starting in 2022.

Joe Sprague, President and CEO of Horizon Air, said, "Our customers love the comfort and convenience of the E175, especially their two by two layout, meaning no one has to sit in  the middle seat. The size and efficiency of the E175 also allows us to boost flying in key  markets, giving our customers more of the flexibility they crave."

Mark Neely, VP Sales and Marketing, The Americas, Embraer Commercial Aviation, ‎said, "The E175 is truly the backbone of the North American regional market; Embraer's market share in the region's 70-90-seat segment is 85%. There are currently 588 E175s serving U.S. and Canadian carriers in cities across Canada, the USA, Mexico, and Central America."

Alaska Air Group also announced today a commitment for eight more E175 aircraft with SkyWest Airlines.  Once all 17 E175 aircraft announced today are delivered, Alaska Air Group will have 79 E175s in its regional fleet operated by Horizon and SkyWest.

Horizon is converting nine options from its April 2016 contract to firm orders. Added to Horizon's three remaining firm orders on backlog, they will have a fleet of 42 E175s flying for Alaska Airlines, when all aircraft are delivered.

The E175 has been a lifeline for carriers as they are perfectly suited to rebuild frequencies and add incremental capacity to meet rebounding domestic demand. During 2020 it was the first aircraft type to bounce back, achieving 100% of Alaska's 2019's schedule by Nov. 2020. Last October, the E175 started replacing larger aircraft on several intra-Alaska routes. Alaska Airlines has also been building its presence in California with the addition of new seasonal routes between cities in the Golden State and Montana with the E175.

Aircraft photos:
https://embraer.imagerelay.com/share/a5b91ed5eee44458bc7d97eb038ad2a3

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About Embraer

Embraer is a global aerospace company headquartered in Brazil. It manufactures aircraft for Commercial and Executive aviation, Defense & Security, and Agricultural customers. The company also provides after-sales services & support through a worldwide network of wholly-owned entities and authorized agents.

Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.

Embraer is the leading manufacturer of commercial jets up to 150 seats and is the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service and parts distribution centers across the Americas, Africa, Asia, and Europe.  

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SOURCE Embraer S.A.

FAQ

What is the value of the recent Embraer contract with Alaska Air Group?

The contract for nine E175 jets is valued at USD 449.1 million.

When will the E175 jets be delivered to Alaska Airlines?

The delivery of the E175 jets will start in 2022.

How many E175 aircraft does Alaska Air Group currently operate?

Alaska Air Group currently operates 62 E175 jets.

What percentage of the regional market does Embraer hold with the E175?

Embraer holds an 85% market share in the 70-90 seat aircraft segment in North America.