flyinggreasemnky
Well-Known Member
United to Buy $840 Million of Embraer Regional Jets - Bloomberg
United Continental Holdings Inc. (UAL) agreed to buy 30 Embraer SA (EMBR3) 76-seat regional jets valued at about $840 million under a new pilot contract allowing commuter partners to fly bigger planes.
Deliveries of E-175 jets from Sao Jose dos Campos, Brazil- based Embraer will begin in 2014, United said today in a statement. United, the world’s largest airline, is retiring smaller, less-efficient 50-seaters as part of the move.
United is taking advantage of changes in the so-called scope clause of the labor agreement reached with pilots in 2012. Those terms specify the maximum size of planes that can be flown by pilots at lower-paying regional airlines, which helps reduce labor costs at major carriers such as United.
The Chicago-based airline joins peers in getting rid of their smallest jets. Delta Air Lines Inc. (DAL) ordered 40 Bombardier Inc. (BBD/B) CRJ900 76-seaters in December as it retires 50-seaters, and AMR Corp. (AAMRQ)’s American Eagle reached a deal in January for Republic Airways Holdings Inc. (RJET) to operate 53 Embraer 76-seaters.
New Embraer 175s have an average book value of about $28 million apiece, according to Chantilly, Virginia-based consultant Avitas. Recent sales have averaged about $26 million, based on data compiled by Doug Rothacker, a Bloomberg Industries analyst in Skillman, New Jersey. United didn’t disclose a price.
Continental Airlines Inc., one of the carriers that formed the current United in a 2010 merger, had the most-restrictive scope clause among major U.S. carriers, with commuter affiliates limited to flying aircraft with 50 or fewer seats.
Plus, 40 options...
http://atwonline.com/airframes/unite...embraer-e-175s
United Continental Holdings Inc. (UAL) agreed to buy 30 Embraer SA (EMBR3) 76-seat regional jets valued at about $840 million under a new pilot contract allowing commuter partners to fly bigger planes.
Deliveries of E-175 jets from Sao Jose dos Campos, Brazil- based Embraer will begin in 2014, United said today in a statement. United, the world’s largest airline, is retiring smaller, less-efficient 50-seaters as part of the move.
United is taking advantage of changes in the so-called scope clause of the labor agreement reached with pilots in 2012. Those terms specify the maximum size of planes that can be flown by pilots at lower-paying regional airlines, which helps reduce labor costs at major carriers such as United.
The Chicago-based airline joins peers in getting rid of their smallest jets. Delta Air Lines Inc. (DAL) ordered 40 Bombardier Inc. (BBD/B) CRJ900 76-seaters in December as it retires 50-seaters, and AMR Corp. (AAMRQ)’s American Eagle reached a deal in January for Republic Airways Holdings Inc. (RJET) to operate 53 Embraer 76-seaters.
New Embraer 175s have an average book value of about $28 million apiece, according to Chantilly, Virginia-based consultant Avitas. Recent sales have averaged about $26 million, based on data compiled by Doug Rothacker, a Bloomberg Industries analyst in Skillman, New Jersey. United didn’t disclose a price.
Continental Airlines Inc., one of the carriers that formed the current United in a 2010 merger, had the most-restrictive scope clause among major U.S. carriers, with commuter affiliates limited to flying aircraft with 50 or fewer seats.
Plus, 40 options...
http://atwonline.com/airframes/unite...embraer-e-175s
