Embraer announces sale of up to 150 aircraft for American Airlines

SÃO PAULO-Embraer announced on Thursday the sale of up to 150 aircraft for American Airlines, in a deal that could add $ 6.25 billion, whereas firm orders and options. American Airlines is the fourth airline of the United States ordering Embraer jets this year. In all, the Brazilian manufacturer sold more than 700 aircraft for companies in the country, whereas firm orders and options of first and second generation jets.
The contract with American Airlines provides 60 firm orders for jets and 175-90 and more options. Only firm orders totaling $ 2.5 billion, whereas the values of the table model.
The company also commissioned 30 CRJ900 NextGen jets from Canadian Bombardier, with an option for another 40 aircraft. Bombardier planes will be delivered in the second quarter of 2014. Embraer's already coming from the first quarter of 2015.
The jets from the two manufacturers will fly with the American Eagle brand and will be operated by a partner airline for American Airlines to be set, the company said in a statement.
American Airlines orders contain a cycle of buying American Airlines aircraft for regional flights. The trigger for the renewal of the fleet was an agreement between companies and pilots ' Union, signed in 2012, which allowed them to do regional flights with larger aircraft. The new rule, companies could operate with aircraft capable of up to 76 passengers, against 50 in the previous limit.
After the change, the American flight left for shopping, intensifying the dispute between Embraer and Bombardier, leaders in the segment of jets of 70 to 120 seats.
The Brazilian manufacturer took most of the contracts of the round. The first-generation jets sales accounted for about 70% of orders from American companies in this category after the rule changes. The company also sold aircraft and 200-175, between firm orders and options. The model launched this year should hit the market in 2020.
Altogether, Embraer sold jets and 175-177 to American Airlines-Republic Airways, American Airlines, United and Skywest, which should be delivered over the next three years. Bombardier already closed 70 firm orders, considering purchases made by American and the contract with Delta.
"The change in the regulation was what allowed us to offer u.s. companies a bigger plane. But we won the race because our plane have lower operating costs and a wider cabin, "said the President of Embraer commercial aviation, Paulo Cesar Silva.
Orders from u.s. companies accounted for 80% of total sales of Embraer this year. This heating of the American market was fundamental to the growth of the portfolio of enterprise applications in 2013, after three consecutive years of decline. In the third quarter, the company accumulated $ 17,8 billion in firm orders, up from $ 12.5 billion at the end of 2012, but still below the $ 20.9 billion in 2009.
Analysis. The growth of the backlog and the large orders left analysts worried about the impact of the concentration on the shores of Embraer. Analysts of BTG Pactual, Citibank and Itaú BBA wrote in reports that the discount granted to u.s. airlines may have been high.
"A growing proportion of E-175 in the mix, along with trade discounts for large orders, must weigh in on the banks of the segment (commercial aviation) in the short term," said analysts of BTG Pactual.