AF Air FranceKLM

   By Robert Wall 

LONDON--Brazilian aircraft maker Embraer SA (EMBR3.BR) on Monday said Air France-KLM (AF.FR) placed a firm order for 17 regional jets with a list price of $764 million.

The deal also includes options for the Franco-Dutch airline group to buy another 17 planes, which could boost the total value of the deal to $1.5 billion at list price. Airlines typically get discounts when they buy planes.

The firm order is for two E190 regional jets due for delivery starting this year to KLM Cityhopper, a unit that operates on shorter, regional routes. The airline will also get 15 ERJ175 jets that will be handed over starting early next year, Embraer said in a statement. KLM Cityhopper already operates both plane types.

The 17 jets for which the airline group took options could be used either by KLM Cityhopper or by Air France's regional arm, the plane maker said.

Write to Robert Wall at Robert.Wall@wsj.com