Guy Norris/FORT WORTH

American Eagle has selected the Embraer ERJ-135 to meet its requirement for up to 150 of the 37-seat regional jets.

The carrier expects formally to announce the deal by early September - probably in time for the Farnborough air show. The decision will be a major, but not unexpected, blow to the rival Fairchild Dornier 328JET/428JET.

The airline, the American Airlines feeder, says it is in detailed negotiation with Embraer. "We've still got to cut deals with Embraer, with the banks and with engine supplier Allison," says American Eagle president Daniel Garton.

"I've read reports that we've signed a deal and others that we haven't-they're both wrong. We are somewhere between and we're working hard to get there."

1174

Garton says that commonality with its ERJ-145 fleet was a key factor in its selection over the 328JET. The airline already has a firm order for 42 of the 50-seat ERJ-145s, plus options for a further 25 aircraft.

The choice follows a similar transaction undertaken by Continental Express, which ordered large numbers of ERJ-145s and recently followed that up with a deal to purchase the smaller version.

Under a scope clause with its pilots, American Eagle can fly as many regional jets with 42 or fewer seats as it likes, but is restricted in the number of 50-70 seat aircraft it can fly. It is thought that Fairchild Dornier tried to overcome the commonality argument at American Eagle by offering the slightly larger 42-seat 428JET. American's preference for a 42-seater was outweighed by cost reductions available from commonality, however.

American Eagle, which has annual sales of more than $1 billion and is the largest feeder airline in the world, has already received its sixth ERJ-145. A further 14 are due for delivery in 1998, with the balance of 22 due for handover in 1999. The first of 25 Bombardier Canadair Regional Jet Series-700s, also on order, is not expected to be delivered until early in 2001.

American ERJ-145 began operations from American's Chicago hub on 15 May on former turboprop routes to Cleveland, Cincinnati and Milwaukee.

Source: Flight International