Embraer Sells up to 34 Additional E-Jets to Air France/KLM Group
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SAO JOSE DOS CAMPOS, Brazil, – Embraer announced today a firm order for 15 E175s and two E190s from KLM Cityhopper, KLM's regional subsidiary. The contract for the 17 E-Jets also includes an option for 17 additional E-Jets for KLM Cityhopper or Air France regional subsidiary HOP! The firm order, which will be included in Embraer's 2015 first-quarter backlog, has an estimated value of USD 764 million based on Embraer's current list prices. The transaction is valued at USD 1.5 billion, if all options are exercised.
Both the E190s and the E175s will be configured in single-class layouts. They will join the 28 E190s already flying with KLM Cityhopper to replace the remaining 19 Fokker F70s that the carrier is phasing out.
"KLM Cityhopper's decision to acquire more E-Jets is a tremendous endorsement and confirmation that the E-Jets are the most efficient, comfortable and the lowest operating cost aircraft in the segment from 80 to 110 passengers," said Paulo Cesar Silva, President CEO, Embraer Commercial Aviation.
The delivery of the first E190 is scheduled to occur by year-end. The first E175 will join KLM Cityhopper's fleet in the first semester of 2016. The Air France/KLM group started the process of replacing the Fokker 100 for E-Jets in Regional/Air France and KLM Cityhopper in 2008, in order to enhance the existing network and to permit the development of new routes. When the last aircraft from this order is delivered, Air France/KLM group will have 71 E-Jets, the largest E-Jet fleet in Europe.
"Purchasing these seventeen Embraers and taking out an option to order an additional seventeen in the future, represents a giant stride for KLM in terms of fleet renewal. KLM continues to invest in its fleet and product in order to offer passengers the best, as well as reaffirming KLM and KLM Cityhopper's commitment to our customers," said KLM President CEO Pieter Elbers.
"This strategic decision ties in with KLM Cityhopper's policy of ongoing innovation. The new fleet will contribute even more towards optimal operations, serving the seven million passengers who fly with KLM Cityhopper each year," said Managing Director KLM Cityhopper Boet Kreiken. KLM Cityhopper was recently awarded by the Air Transport News magazine as Regional Airline of the Year 2015.
The E175s feature a new wingtip that, among other technical enhancements, improves aerodynamic performance. Fuel consumption on a typical flight is 6.4% lower than the original E175. The reduction makes the operating economics of today's E175s comparable to large-capacity turboprops and presents new opportunities for the E175.
Since entering revenue service in 2004, Embraer has received more than 1,560 orders for its family of E-Jets. The aircraft have been added to the fleets of 65 customers in 45 countries. More than 1,100 E-Jets have been delivered. The versatile 70 to 130-seat family is flying with low-cost airlines and with regional and mainline carriers.
About KLM Cityhopper
KLM Cityhopper operates around 300 flights a day for KLM. These flights all serve cities within Europe, 54 of which are essentially business destinations. Each day, around 18,000 passengers choose to fly with KLM Cityhopper. KLM Cityhopper was recently rated Regional Airline of the Year 2015 by an international panel of professional judges.
Embraer S.A. (NYSE: ERJ; BMFBOVESPA: EMBR3) is the world's largest manufacturer of commercial jets up to 130 seats, and one of Brazil's leading exporters. Embraer's headquarters are located in Sao Jose dos Campos, Sao Paulo, and it has offices, industrial operations and customer service facilities in Brazil, China, France, Portugal, Singapore, and the U.S. Founded in 1969, the Company designs, develops, manufactures and sells aircraft and systems for the commercial aviation, executive aviation, and defense and security segments. It also provides after sales support and services to customers worldwide. For more information, please visit www.embraer.com.br.
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SOURCE Embraer S.A.
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