U.S. regional Continental Express Monday exercised options for an additional 25 Embraer ERJ145 regional jets, bringing its orderbook for the 50-seaters to 75 firm plus 125 further options. The order is valued at $375 million. The Houston-based carrier became the U.S. launch customer for the airplane at Farnborough '86 with its order of 25 plus 175 options. It exercised its first 25 options at last year's Paris Air Show. COEx also ordered 25 37-seat ERJ135s in May with options for 50. Monday's 145 order takes the orderbook to 100 ERJs plus 100 options.

"This order moves us one step closer to our goal of transitioning to an all-jet fleet," said COEx president David Siegel. The company additionally operates 32 EMB-120 Brasilia turboprops at 30 seats, 65 ATR 42s at 46 seats, three ATR 72s at 64 seats, and 25 19-seat Beech 1900Ds. The Brasilia fleet will be retired by year-end 2000 with the first to go on the market in about a month. The 72s are also to be retired, beginning in the next few months.

"As we continue to induct new jet aircraft into our fleet, more of our customers enjoy the best product in the regional industry," Siegel said. "At the same time, Express benefits from increased economies of scale, lower operating costs and enhanced aircraft performance."

The decision to go all-jet is based on costs, said Siegel, citing a 30% improvement in traffic from the jet-stimulation factor and higher revenues. He said placing a jet into an ATR 42 market results in the same trip costs while adding four additional seats. "This is a significant cost advantage over other carriers," he maintained. "And the passengers are overwhelmingly pleased."

COEx will be operating 35 145s by year-end and 50 by next September. It is taking delivery of 18 145s per year and next year will receive one 135 per month.

By Arnold Lewis