Embraer sees multiple deals maturing soon with US airlines

Washington DC
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Embraer chief executive Frederico Curado says today that he expects multiple pending deals to mature with US airlines for large regional jets within a few months.

"There are ongoing discussions. We are confident we are going to take a significant share of those agreements," Curado says.

The deals would represent the latest tranche in the long-awaited re-fleeting of US regional jet fleets, as they transition from 50-seat aircraft to at least 75-seat jets over the next several years.

The re-fleeting began last year with deals by SkyWest Inc in July for 100 Mitsubishi Regional Jets (MRJs) and by Delta Air Lines in December for 40 Bombardier CRJ900s.

More recently, Republic Airways tentatively ordered 47 Embraer E-175s to operate on behalf of American Airlines in January. The bankruptcy court involved in AMR's financial restructuring approved the transaction late on 12 March, clearing Embraer and Republic to finalise the deal.

But there remains significant follow-on orders available among the US carriers. Curado declines to name the specific airlines involved in ongoging discussions due to confidentiality agreements.

Overall, Embraer still expects a requirement for between 400 to 600 regional aircraft orders in the US market over the next several years, Curado says.

"I think that number is still a good estimate," he says.