SkyWest Airlines Orders 20 Embraer E175 Jets

Regional airline operator SkyWest has ordered 20 Embraer E175-E1 jets worth almost $1 billion. SkyWest will operate the new aircraft on behalf of American Airlines’ regional brand American Eagle. Deliveries are due to begin later this year.

Embraer E175-E1 aircraft
SkyWest has ordered 20 Embraer E75-E1 aircraft. Photo: Embraer

The deal

Despite Embraer having issues with orders for the new E175-E2, orders are still coming in strong for the E175-E1. The latest order comes from SkyWest who already operates 156 E175s, although this will be the first time they operate them for American Eagle.

The new aircraft will be configured with 76 seats and delivery will start in the second half of the year. The airline already operates similar aircraft for Alaska Airlines, United Express and Delta Connection. SkyWest only operates under the names of other airlines but has one of the largest fleets in the world at almost 500 aircraft.

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Skywest flies for other airlines, but has one of the world’s largest fleets. Photo: Skywest

The deal between SkyWest and Embraer is valued at $972 million and has already been included in Embraer’s 2019 backlog. SkyWest initially ordered 100 Embraer aircraft way back in 2013 but has not been allowed to fly the plane due to restrictions from pilot unions regarding the size of the aircraft.

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Restrictions on the E2

It is due to the restrictions from US pilots’ unions which means Embraer is yet to deliver any E175-E2 aircraft. SkyWest has 100 of the next-generation E2 aircraft on order, worth around $9.4 billion. The airline has said this new order of E1 aircraft does not affect the original order and that it still hopes to receive the planes if an agreement can be made with the unions.

The problem with the unions is that although the new E2 jet is almost the same as the E1, most of the major airlines have contracts saying that regional pilots can’t fly them. Regional pilots are often paid less, so the big airlines aren’t allowed to rely on the smaller jets which take jobs away from the pilots who fly the large aircraft for more money.

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Embraer E175-E2
The Embraer E175-E2 is slightly heavier than the E1 which means it is restricted by union contracts. Photo: Embraer

Scope clause

While this gives the pilots a decent bargaining chip, it means that the new, more fuel-efficient, quieter E2 planes are not be utilized. The E2 is a slightly heavier plane which means that regional pilots cannot fly it. Most union contracts state that the take-off weight of the E2 is almost 13,000lb heavier than is generally permitted for regional pilots.

While Embraer is confident that they will find a way around the issue, saying that measuring regional aircraft by weight is old-fashioned, the unions don’t seem to want to budge. So, Embraer is looking to sell the new E175-E2 outside of American into the European markets. But this is tricky and regional jets have never done that well outside the American market.

Another hope for Embraer is that the joint venture with Boeing is completed. With the force of Boeing behind them, perhaps the manufacturer could get its E175-E2 off the ground and into the skies. But as yet, the performance of the E175-E2 has yet to persuade the unions to change their Scope clauses.

What do you think of the new E175-E2 jet? Will the unions change their position or are Embraer fighting a losing battle?

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Armand2REP

This is good news for the A220. It is not pretending to be something it is not and its pilots receive full wages. The E2 is just another cost cutting deception to airlines who think they will be able to pay their pilots less money.

Frank

You know it’s bad when you have a brand spanking new model and customers are buying the less efficient older models…

Frank

Ouch. This is not good news for the E2 line. It’s looking like the scope clauses will not be changed and the E2 line will be orphans – given that the A220 is being used by mainline carriers and has left the regional market behind. The E2 cannot compete with the A220 in mainline fleets and is too big for US regionals, leaving it stuck in the middle with no market, save for a few orders here and there.

Perhaps Boeing may want to re-visit that $4 billion tie up

John

Embraer is 100% at fault for designing a non scope compliant aircraft. Too bad.

The CRJ program is dead. No new orders, and the last aircraft will be delivered this year. The E2 cannot be flown in the US and it has limited orders outside North America. Mitsubishi’s Spacejet isn’t looking too good as well.

Airlines will likely continue to fly aging regional jets into the ground. A new, efficient, clean sheet RJ is needed. Otherwise, long term, regional flying will die off.

Gerry S

Regional flying will die off??…… How is that possible? Pray tell!

Ivan

Mostly because LCC would use the likes of A320neo and MAX8 to operate their flights to these smaller cities.

Competition from these LCC would kill of regional airlines that try to get premium customers.

If LCC grows, Regional would shrink.

Guilherme Lobato

I hope that Embraer can solve this problem. It is an excellent company.

Benedito Venturoso

It sounds like an absurd discussion, since it’s not taking into consideration the benefits that the new aircraft would bring for the passengers, for the environment and for the pilots themselves in terms of safety. It shows how absurd American capitalism has become! A stupid clause written with no sense of consequence preventing upgrades on people’s standards of comfort, safety and economy!

Armand2REP

You sold out your entire aerospace industry to Boeing. I would think you would be far more concerned with that when they start gutting operations in Brasil.

Gerry S

@Benedito V: …….Well said. However don't blame capitalism et al. Blame belongs with the union which is unbending in its rules. Pilot protectionism over the abilities of other pilots to fly. The only ones who benifit are the regional carriers who get to pay their pilots a whole lot less money. Now it seems that clause has also handicapped them since they cannot purchase a much safer and superior a/c. Once the airline itself presses for change it will happen.

Gerry S

@Ivan: A320 sized a/c would not operate profitably in regional areas. Passenger numbers are much lower than 100 persons. That is why there are regionals linking small airports to big ones. A320 could not even get in some airfields. Regionals in the US are here to stay.