News Release
Continental Airlines Announces New Order for 37-Seat Embraer Regional Jet
SAO PAULO, Brazil, May 6, 1998 -- Continental Airlines (NYSE: CAIA CAIB) today announced from Sao Paulo, Brazil, an order by its regional subsidiary, Continental Express, for 25 Embraer ERJ-135, 37-seat regional jets. The order strengthens Continental Express' move towards an all-jet fleet over the next five years. At a list price of $12.6 million per aircraft, the transaction is valued at $315 million.
In addition to 25 firm ERJ-135 jets, the order includes an option for 50 additional aircraft. The firm order with options, added to the 150 options still remaining on the ERJ-145 (50-seat regional jet) arrangement, brings the total commitment to the Embraer jet family to 75 firm and 200 option aircraft over the next 10 years.
Continental Express will be the first North American operator of the 37-seat ERJ-135 with deliveries beginning in July 1999. Continental Express became the North American launch customer for the 50-seat ERJ-145 in April 1996 when it introduced service from its hubs in Cleveland and Newark. Today there are 22 Continental regional jets in service in the U.S. Customer surveys indicate passengers strongly prefer jets to propeller planes.
"We have now solidified our position as a leader in the use of small, efficient jets on regional routes. We are Embraer's number one world-wide customer taking a product that has proven itself with superior customer satisfaction, turboprop-like costs, and excellent reliability in its first year of service," said Gordon Bethune, CEO and chairman of ContinentalAirlines.
"Continental has placed itself at the forefront in the regional airline industry with this newest order, thanks to our business partnership with Embraer and its President and CEO Mauricio Botelho," Bethune said.
In the Sao Paulo news conference, Mauricio Botelho, Embraer's president and CEO, said, "We are extremely pleased and honored with the selection of the ERJ-135 by our largest customer, Continental Airlines. Their decision represents an endorsement of the Embraer Jet family concept, demonstrated by the performance of the 22 ERJ-145s in operation. This new contract with Continental proves the quality of our products and ensures the success of the ERJ-135."
Cruising at Mach .78 (520 mph), the regional jet is designed to fly 1,300 miles. The new product embodies the Embraer "jet family" concept. Based on the ERJ-145 design, the new 37-seat jet shares a 90 percent design commonality, such as the Rolls-Royce/Allison AE3007A engines and main systems, equivalent cockpit, wings, tails and fuselage (11.6 ft. shorter). The commonality offers cost efficiencies through reduced training, maintenance, and spare parts requirements.
Continental Airlines is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 122 domestic and 70 international destinations. Operating major hubs in Newark, Houston, Cleveland and Guam, Continental is strategically positioned for transcontinental travel, and offers extensive service to Latin America and Europe via its Houston and Newark gateways. Continental has entered into a strategic global alliance with Northwest Airlines, subject to government approval, that will result in interconnection of the two airlines' route systems, code-sharing arrangements, frequent flier reciprocity, cooperation between Continental and Northwest's trans-Atlantic partner KLM, and other cooperative activities.
Continental Express serves more than four million customers annually with more than 800 daily departures to 80 cities from its hubs in Newark, Houston and Cleveland. Continental Express offers advance seat assignments and OnePass frequent flyer miles which can be redeemed anywhere in the world Continental and its partner airlines fly.