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Embraer Announces A Firm Order For 30 E-Jets By United Airlines

Stocks in this article: ERJ

SAO JOSE DOS CAMPOS, Brazil, April 29, 2013 /PRNewswire/ -- Embraer announced today that it has signed a firm order with United Airlines for the sale of 30 EMBRAER 175 jets, with options for an additional 40 of the same model, taking the firm order and options to a total of up to 70 aircraft. If all options are exercised, the combined order has an estimated value of USD 2.9 billion at current list prices.

"With this order for the new enhanced E175 jet, we are delighted to reinforce and extend our long-standing partnership with United Airlines, which was the ERJ 145 launch customer back in 1996, known at that time as Continental Airlines," said Paulo Cesar Silva, President and CEO, Embraer Commercial Aviation. "This order from United, one of the world's leading airlines, validates our investment strategy in the E-Jets, where we offer an optimized product with all of the additional benefits of a proven and mature platform. The E175 has proven itself to be the best product for the U.S. regional market for the next decade and beyond."

The partnership between Embraer and United, which is the product of the 2010 merger of United Airlines and Continental Airlines, started with the sale of  EMB 120 Brasilia turboprops to Continental Airlines in the 1980s. Subsequently, Continental was also the ERJ 145 jet launch customer, eventually acquiring 275 jets, the largest ERJ fleet in the world. Currently, 38 E170s are flying with United's regional partners under the United Express brand.

The E175s will be operated under the United Express brand. The aircraft will be configured in a 76-seat layout. The first delivery is scheduled for the first quarter of 2014.

"At United, we are focused on modernizing our fleet, and we look forward to introducing the E175 to our United Express service. Compared to the 50-seat aircraft we are replacing, these aircraft provide a superior customer experience and are more fuel efficient," said Jim Compton, United's Vice Chairman and Chief Revenue Officer. "With a large first-class cabin, wider fuselage, and larger overhead bins, this aircraft brings an improved regional flying experience to our customers."

As the leader in the 70 to 120-seat jet segment, Embraer continues to invest in the E-Jets family, which is flown by over 60 airlines from more than 40 countries. The Company has begun implementing a series of enhancements to the E175, including new wingtips, systems optimization, and aerodynamic refinements that will lower fuel burn by as much as 5%. Longer maintenance intervals and component improvements will increase aircraft productivity and bring maintenance costs down. All of the United Airlines deliveries will include these enhancements.

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