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Continental Express Launches ERJ-145XR in $3 Billion, 175-Aircraft Order

Embraer has seized the headlines again with another new aircraft and another multi-billion dollar order. After Sunday's launch of the Legacy corporate jet, Embraer has returned to the regional jet market and unveiled the extended-range ERJ-145XR, a development of the long-range ERJ-145LR. The XR features a revised wing with winglets, newly-developed Rolls-Royce AE3007-A1E engines, a reinforced fuselage to cope with higher operating weights, and an additional fuel tank in the wing trailing-edge/rear fuselage section.

The new AE3007 engines offer 7% more thrust, while the new wing further extends cruising range. Compared to the existing ERJ-145LR (Long Range), the ERJ-145XR offers a 2,000 kg increase in max take-off weight, a 700 kg increase in max landing weight, and a 600 kg increase in zero-fuel weight.

Payload and maximum cruise speed (Mach 0.78) remain unaffected, but range as been extended from roughly 1,500 nmi to 2,000 nmi.
The ERJ-145XR has improved "hot-and-high" capability, too. To illustrate this, Embraer cited the example of operations from Denver, an airport where the typical operating conditions are ISA+30. With a full load of 50 passengers an ERJ-145XR would have an effective range of 1,580 nmi.

Echoing his words from the earlier Legacy launch, Embraer president and CEO Mauricio Botelho pointed out that a program is only valid with a customer. He continued, "We have a very special relationship with Continental Express. In September 1996 they were the launch customer for the ERJ-145 and that was a true vote of confidence in the aircraft and the company. I remember that the market laughed at us, saying "they'll never, ever, confirm all those options." The fact is that Continental Express have 210 firm orders and 60 options-until now."
Botelho handed over to Jim Ream, president of Continental Express, who declared, "We will convert all our remaining options to firm (XR) options and switch 11 of our ERJ-145LRs to XR standard. Having used up all our option positions we'd like to hold on to some flexibility, so we have reserved another 100 options, over and above the 275 we already hold."

The value of the deal was quoted as $3 billion, with $1.2 billion of that taken up by the 75 firm orders.

The new deal re-organizes Continental Express's already complicated ERJ order book. Prior to this announcement the airline held 211 firm orders, with 64 options. Of these Continental will eventually take delivery of 50 ERJ-135s and 150 ERJ-145s. The new order for 75 ERJ-145XRs will take up the 64 options plus 11 existing ERJ-145LR orders, yet to be delivered, which will be converted on the line. The 100 options announced today could be taken up as any type in the ERJ-135/145 family.

The ERJ-145XRs will serve on routes such as Houston-Guadalajara, where hot-and-high conditions in Mexico force standard aircraft to operate with a 10-15 passenger penalty, depending on time of year. The XR will also benefit routes where ATC restrictions force aircraft to descend from their optimum cruise level before the desired time-like services from New York to Florida, and along the entire Eastern seaboard. Finally, the XR will allow Continental Express to extend its network on thin routes like Houston to Fresno or Bakersfield, avoiding the need for eastbound passengers to have to feed into western hubs like Los Angeles.

The first aircraft will be delivered in August 2002. Continental will continue to receive between three and four per month until all 275 aircraft are in service by January 2005.

"We will have one fleet type covering our entire network. Everything we do now, or plan to do in the future, we can do with an Embraer jet," said Continental chief Ream.

"I think the contribution that the engine has made to all our success has been underrated," he continued. "Giving us 7% more thrust is a sizeable improvement-but then, if you can't rely on Rolls-Royce in this business, who can you trust?"

By Robert Hewson

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