Embraer Secures $914m order from SkyWest to sell 20 aicraft

Embraer announced a firm order from SkyWest for 20 E-Jets. The order has a value of USD 914 million, based on current list prices, and will be included in Embraer’s 2017 third-quarter backlog. Combined with last month’s announcement for 25 new aircraft, today’s order results in a cumulative order of 45 new aircraft placed by SkyWest with Embraer in 2017.

 

 

 

Brazilian aircraft manufacturer, Embraer, and U.S. regional carrier, SkyWest, have announced a $914 million order for 20 E-Jets, of which 15 will fly for Delta Air Lines, and the other five for Alaska Airlines. The transaction will take the total number of E175 jets booked by SkyWest in 2017 to 45. Notably the airliner had ordered 25 new jets from Embraer in September. The payment for all 45 aircraft will be made using $161 million in cash and the balance in debt. While delivery of the E175s is expected in between September and early 2018, the E175 SCs are expected to be delivered in the next year.

 

 

 

 

The latest agreement has brought the total number of orders received by Embraer from SkyWest this year to 45, including last month’s announcement for 25 new aircraft. Deliveries of the aircraft are expected to begin this month and scheduled for completion by the end of next month. The aircraft will be operated by SkyWest subsidiary SkyWest Airlines following delivery. Of the 20 aircraft, SkyWest will receive 15 E175 Special Configuration aircraft, in a 70-seat configuration. The E175 Special Configuration aircraft features an E175 airframe, which can be retrofitted to 76 seats in the future. SkyWest will also receive five E175s, in a 76-seat configuration, similar to aircraft SkyWest has previously ordered.

 

 

 

Including this new contract, Embraer has sold more than 380 E175 jets to airlines in North America since January 2013, earning more than 80% of all orders in the 76-seat jet segment. Since entering revenue service, the E-Jets family has received more than 1,700 orders and over 1,300 aircraft have been delivered. Today, E-Jets are flying in the fleets of 70 customers in 50 countries. The versatile 70 to 130-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

 

 

 

 

Price Movement:

Shares of Embraer have declined 30.2% in the last year, as against the industry's gain of 49.3%. This underperformance may have been caused by the weakening Brazilian real against the U.S. dollar. Additionally, the softness observed in the company’s Defense and Security business remains a concern.

 

 

About the Embraer:

Embraer is a global company headquartered in Brazil with businesses in commercial and executive aviation, defense & security. The company designs, develops, manufactures and markets aircraft and systems, providing customer support and services. Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. 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 130 seats.

The company maintains industrial units, offices, service and parts distribution centers, among other activities, across the Americas, Africa, Asia and Europe once entering revenue service, the E-Jets family has received more than 1,700 orders and over 1,300 aircraft have been delivered. The versatile 70 to 130-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

 

Source: ICAERODESIGN, 2017

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Friday Oct 6, 2017