American Can't Pick Just One, Places Regional Orders With Bombardier and Embraer Totaling $1.4 Billion
American Airlines announced on Thursday that it's placed two separate aircraft orders — one with Bombardier and one with Embraer — totaling $1.4 billion. The Dallas-based carrier's Thursday order includes both a firm order for 15 Embraer E175 jets and 15 Bombardier CRJ900s.
The order for 15 Embraer E175s is worth $705 million, based on current list prices. Combined with the carrier's previous three E175 orders, the contract for AA orders with Embraer totals 89 — most recently, an order for 10 in October 2017. Deliveries for the order of 15 E175s placed on Thursday from Brazil-based Embraer will take place between March and November 2019.
Each of the 15 E175s ordered by AA on Thursday will be operated by Envoy Air, a wholly owned subsidiary of the carrier. The aircraft will be outfitted with 76 seats — 12 in first class and 64 in the main cabin, including Main Cabin Extra seats. Along with the firm order for 15 E175s, AA's also took options for 15 more.
The second order AA placed on Thursday is with Embraer's Canadian competitor, Bombardier. In total, American placed an order for 15 of Bombardier's CRJ900 jets, which will be operated by regional affiliate PSA Airlines. Based on list value, the order has a value of about $719 million. In addition, it also took options for 15 more CRJ900s.
The new CRJ900s will feature Bombardier's Atmosphere cabin, offering an enhanced passenger experience and can accommodate a large number of roller bags in its overhead bins. The aircraft will feature 76 seats — 12 in first class and the remaining in economy. The first deliveries of the CRJ900 are set to take place in the second quarter of 2019.
Bombardier has struggled to keep its CRJ program afloat, admitting to neglecting it in favor of its new CSeries family.
As Bloomberg reports, American had about 118 CRJ900 aircraft operated by regional affiliates PSA and Mesa at the end of 2017. In addition, it had 148 E175s in operation at Republic, Envoy and Compass affiliates. It's added about 200 dual-class regional jets in the past four years. Thursday's order for 30 more of the jets shows the emphasis AA is putting on updating its regional jet fleet.
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Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month