United Airlines Buying 30 Embraer Jets
United Continental's United Airlines needs a few more airplanes -- and it's buying them from Brazil.
On Monday, Embraer announced that it has signed a firm order agreement to sell UA 30 of its Embraer 175 regional jets, along with options to buy 40 more. At list prices, and assuming all options are exercised, the deal would be worth $2.9 billion to Embraer.
Announcing the deal, Embraer emphasized its long-standing relationship with the airline, which was Embraer's "launch customer" (the first airline to sign on the dotted line to buy its planes) for the ERJ 145 airliner back in 1996, and has been buying Embraer planes since the 1980s. (This was all pre-merger. At the time, UA was still known as Continental.)
United says it will fly the new planes under its United Express brand, and will configure them as 76-seaters offering a large first-class section, and larger overhead storage bins. The planes will replace older 50-seat aircraft -- and in addition to carrying more customers, will also be more fuel efficient.
The article United Airlines Buying 30 Embraer Jets originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Embraer. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.