Embraer aims to boost production of its RJ-135/145 after a decision by Continental Express to accelerate acquisition of the regional jet with an order for 100 additional aircraft.
The Brazilian company will decide within the next 60 days on whether to ramp up production to 16 aircraft a month. "We're at 12 a month and have committed to 14 by the end of 2000. We are now looking at going to 16 within 15 months," says Fred Curado, Embraer executive vice-president. He concedes that "demand for faster deliveries does pose a challenge for us".
Following Continental's order for another 75 ERJ-145s and 25 ERJ-135s, plus 75 options, total commitments for the two aircraft stand at 995. Firm orders amount to 567 aircraft, comprising 402 50-seaters (186 delivered/216 on order) and 165 of the smaller 37-seater, of which 144 are on backlog.
Embraer is competing for US regional airline campaigns, including US Airways Express and Atlantic Southeast Airlines. It has just announced the sale of 36 ERJ-145s to Mesa, plus 64 options, with deliveries beginning almost immediately. Continental's new order includes an unannounced deal for 25 ERJ-145s concluded in December. The conversion of another 50 options, plus the 25 ERJ-135 orders, doubles the size of the carrier's ERJ-135/145 order and will enable it to accelerate by two years the retirement of its turboprop fleet.
"We're taking delivery of aircraft at the rate of 30 a year and we will complete delivery of all 200 jets in 2003, coinciding with the exit of the turboprops," says Bruce Kink, Continental Express marketing director. The carrier has received 57 ERJ-145s and eight -135s.
Continental has placed all 25 of its Beech 1900Ds with recently acquired subsidiary carrier Gulfstream Airlines and has found buyers in Canada and South America for 10 of its 22 remaining Embraer EMB-120 Brasilias. Eight leased ATR 42-500s are due to be returned to lessors by mid-year and the last of 28 ATR 42-320s by the first quarter of 2003. The last two ATR 72s will go by 2001.
Source: Flight International
