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Embraer, Republic Airways Sign $4 Billion E-Jets Agreement

American Airlines regional carrier Republic Airways signed an agreement with Embraer to acquire up to 94 E-175s, a deal worth up to $4 billion.

The agreement includes a firm order for 47 E-Jets, with options for an additional 47 aircraft. The deal is subject to court approval due to American’s ongoing bankruptcy proceedings. Embraer said it expects to receive approval for the order by the end of March.

Republic Airlines, a Republic Airways subsidiary under American Airlines’ regional American Eagle brand, was the first U.S. carrier to fly Embraer E-Jets.

The Brazilian planemaker said Republic will be the first carrier to fly the upgraded E-175 jets, with new wingtips and aerodynamic refinements to produce lower fuel burn.

“This is a significant milestone in our company’s history,” said Chuck Schubert, vice president of network planning at American Airlines. “Establishing a large regional jet fleet has long been part of our business plan and this agreement is another example of how we are executing on that plan in a way that benefits our business and our customers. We will offer more flights at the right intervals throughout the day in key markets while providing more opportunities for customers to travel in the First Class cabin to key business markets.”

Delivery of the E-Jets is scheduled to begin in mid-2013