Bombardier and Embraer Agreement Made Up Of Both 50- and
Fresh from bankruptcy protection, US Airways agreed to buy at
least 170 Canadair and Embraer regional jets from Bombardier
Aerospace of Canada and Embraer of Brazil. The first aircraft
delivery is scheduled for October 2003.
The order equally splits between the world's two leading
regional jet manufacturers a combination of 170 firm orders and 380
options to purchase aircraft. The estimated value of the firm
order, based upon list price, is approximately $4.3 billion.
Financing terms were not disclosed.
Grow The Network, Shave The Costs
"These new regional jets will enable US Airways to
generate additional revenue by growing our route network and
competing more vigorously in short- to-medium-length haul markets,"
said US Airways President and Chief Executive Officer David N.
Siegel. "The RJs also will enable us to increase hub feed by adding
new markets that were too distant for turboprop aircraft, and
replace current turboprop flying, which will please many customers
who prefer jet aircraft. Regional jets will allow us to replace and
complement larger jet aircraft on routes with poor to marginal
performance, which then can be re- deployed to operate in more
profitable destinations, such as the Caribbean and on other routes
where we currently do not fly."
"Both manufacturers were extremely aggressive in vying for our
business. I believe that this agreement is going to benefit US
Airways and its employees, and brings the greatest value to our
company," said Siegel. "As a result of this great deal, we were
able to split the order equally between Bombardier and
Under the Bombardier agreement, US Airways has firm orders for
60 CRJ Series 200, 50-seat single-class aircraft; and 25 CRJ Series
700, 75-seat dual-class aircraft. The 50-seat order for the CRJ
Series 200 aircraft is scheduled to be delivered beginning in
October 2003 to US Airways Express wholly owned subsidiary PSA
Airlines. All firm order CRJ aircraft will be delivered by April
US Airways also has placed firm orders for 85 Embraer 170,
70-seat, dual class aircraft, with the first delivery scheduled for
November 2003 to MidAtlantic Airways, a regional jet division of US
Airways. US Airways has the option to convert the Embraer 170s to
Embraer 175s with 76 seats. All Embraer 170 deliveries are to be
received by September 2006.
Seigle: RJs Fit In Nicely
Siegel said that these smaller jet aircraft are
extremely well suited to serve the US Airways network and will fill
in nicely with schedules at key times at the airline's hubs in
Charlotte (NC), Philadelphia and Pittsburgh, as well as its major
East Coast operations at Boston, New York LaGuardia and Reagan
"We are extremely pleased that US Airways has selected the
Bombardier CRJ family of regional jets as part of its profit
strategy," said Pierre Beaudoin, president and chief operating
officer, Bombardier Aerospace. "US Airways will realize the
operating benefits of high performance, low operating costs and
family commonality. In addition, US Airways customers will also
enjoy more convenient, comfortable service."
"To be a part of US Airways' remarkable growth plan and to have
them as the launch customer in North America for the Embraer 170 is
exciting for all of us at Embraer," said Mauicio Botelho, president
and chief executive officer of Embraer. "US Airways is redefining
the American commercial airline market, and we are very proud to be
supplying the Embraer 170, an aircraft that is redefining what
people expect from a commercial airliner."
The CRJ Series 700 aircraft and the Embraer 170s will offer both
First and Coach-Class service. Every seat is either an aisle or
window seat. These regional jets also provide comfortable leg space
with plenty of overhead and under-the-seat baggage storage room and
stand-up headroom. They have a cruising speed of around 500 miles
per hour and can cruise at altitudes above 30,000 feet. GE engines
will power each of these regional jets.