Rio de Janeiro: Brazilian aircraft manufacturer Embraer said Tuesday it reached a deal to sell 40 E175 passenger jets to US airline SkyWest for nearly USD 1.7 billion.
The planes have a seating capacity of up to 76 passengers.
An additional 60 orders are subject to SkyWest being awarded contracts with major US airline partners, while the agreement also includes options for 100 other E175s, meaning the deal could eventually comprise up to 200 jets, Embraer said in a press release.
"If all 100 firm orders are exercised, the order has an estimated value of USD 4.1 billion at current list prices, representing one of the most significant orders in each company's histories," the press release said.
SkyWest will operate the first 40 aircraft under a capacity purchase agreement with United Airlines.
Embraer said this latest deal was in addition to a contract Embraer signed with United for 30 firm orders and 40 options for E175s.
Utah-based SkyWest is the world's largest regional airline group and the holding company for two passenger airlines: SkyWest Airlines and ExpressJet Airlines.
The E175s, nearly 150 of which are currently in service by 12 airlines worldwide, have a 2,000-nautical-mile range and the ability to operate on short runways.
First Published: Wednesday, May 22, 2013, 12:19