American Airlines Group Inc. (AAL) signed agreements with
Bombardier Inc. (BBD.A.T, BBD.B.T, BDRBF) and Embraer S/A (ERJ,
EMBR3.BR) to purchase 90 new 76-seat regional jets, a
multibillion-dollar order coming just after the airline completed
its merger with US Airways Group Inc.
American has firm orders for 30 Bombardier CRJ900 NextGen
aircraft, with options for up to 40 more. Bombardier said the firm
order contract is valued at about $1.42 billion and could increase
to about $3.38 billion if the 40 options are converted to firm
orders.
American also has firm orders for 60 Embraer E175 type aircraft
with options for up to 90 more. Embraer said the firm orders have a
value of $2.5 billion.
Earlier this week, American Airlines Group was created after AMR
Corp.'s American Airlines stepped out of bankruptcy and merged with
US Airways, creating the world's largest airline by traffic. Under
the terms of the stock-swap merger, US Airways shareholders
received 28% of the new company's shares, while AMR's creditors and
equity interests were slated to receive the rest.
Kenji Hashimoto, American Airlines Group's senior vice president
of regional carriers, said the new regional jets will improve
economic efficiencies by lowering operating costs and will be an
important element in building up the company's regional
subsidiary.
American Airlines Group shares closed Wednesday at $25.99.
Embraer shares recently rose 3.8% to 18.36 Brazilian reais.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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