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The Week Of:
,2000

Embraer ERJ-140 Launch Driven by American Eagle Scope Clause


By Ian Goold
AWN European Columnist


INTERLAKEN, Switzerland - American Airlines regional subsidiary American Eagle is maintaining its position as Embraer's largest customer, with plans to add at least a further 155 of the Brazilian manufacturer's regional jets to its fleet.

Last week the two parties announced that the airline had become the launch customer for the 44-passenger ERJ-140 when American Eagle ordered 64 and converted options already held on 66 ERJ-135s.

The decision was driven by the airline's failure to agree with flight crews a higher limit to the number of regional jets it can operate with more than 44 seats. American Eagle is limited to 67 such aircraft and by mid-2001 will have 59 ERJ-145s in its fleet, with outstanding orders for 25 larger, 70-seat Bombardier CRJ-700s (of which it also holds options on a further 25).

Currently, Eagle operates about one in four of Embraer's 303 delivered RJs: 50 ERJ-145s and 24 of the smaller 37-seat ERJ-135s. Nine more ERJ-135s should join the fleet this year, with nine ERJ-145s and seven -135s due to arrive during January-July 2001.

Under the latest orders, 12 ERJ-140s will be delivered in the last five months of next year and a further 118 by the end of 2006. Options held on 48 more ERJs also could be exercised for delivery in the same overall period.

Eagle had proposed to pilots that more 50-seat RJs (but no 70-passenger machines) be permitted in its fleet. It is now free to begin taking the larger CRJ-700s, from August 2001 - when ERJ-140s also start to arrive - but has to negotiate its way around the 67-aircraft limit during next year's pilot talks if it is to retain all 59 of the 50-seat ERJ-145s.

At last week's ERA assembly in Switzerland, Embraer president and chief executive Mauricio Betelho said orders for Embraer ERJ-135/140/145 aircraft number 785, with options held by airlines on a further 365 machines. The manufacturer values this business, plus orders and options on its planned ERJ-170 and -190 models, at some $23.2 billion (of which $11 billion represents firm orders).



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