Tag Archives: Embraer ERJ 170-100SU

Fuji Dream Airlines orders two Embraer E175s

Embraer announced today, at the 53rd International Paris Air Show, that it has signed a contract with Japan’s Fuji Dream Airlines (FDA) for a firm order of two E175 jets. The order has a value of $97.2 million, based on 2019 list prices, and was already included in Embraer’s 2019 first-quarter backlog as “undisclosed.”

FDA’s new E175s will be configured in a single-class layout with 84 seats, with deliveries starting in 2019. Embraer delivered the first E-Jet, an E170, to Fuji Dream Airlines in 2009.

The E175 is the best seller of the E-Jets family with more than 770 orders from airlines and lessors around the world. Since January 2013, Embraer has sold more than 565 E175s to airlines in North America alone, earning more than 80% of all orders in the 70-76-seat jet segment.

FDA and Embraer have also signed an extension of the Pool Program to cover its fleet of E170s and E175s, including these new orders. The program includes the advance exchange and repair management for more than 300 essential line replacement units of the aircraft.

FDA-Fuji Dream Airlines Embraer ERJ 170-100SU JA04FJ (msn 17000129) FUK (Rob Finlayson). Image: 946718.

Above Copyright Photo (all others by the airline): FDA-Fuji Dream Airlines Embraer ERJ 170-100SU JA04FJ (msn 17000129) FUK (Rob Finlayson). Image: 946718.

FDA aircraft slide show:

Republic Airways Holdings reports first quarter net profit of $14 million

Republic Airways Holdings (Indianapolis) reported financial results for the first quarter of 2014. Key points include:

Republic’s pre-tax income from continuing operations was $22.8 million, or $0.42 per diluted share, an 18.1% increase over the March 2013 quarter. As of Dec. 31, 2013, Republic had a significant amount of federal net operating loss carry forwards and does not anticipate paying significant federal taxes for the next several years.

Republic’s net income for the March 2014 quarter was $14.0 million, or $0.26 per diluted share. This is a $13.7 million increase from the prior year. The March 2013 quarter was negatively impacted by $11.1 million of losses from discontinued operations at Frontier Airlines.

Republic canceled more than 12,400 flights during the first quarter of 2014, primarily because of severe weather in January and February of 2014. That was a 145% increase from the number of canceled flights compared to the first quarter of 2013. These cancellations negatively impacted the pre-tax financial results by about $7.0 million during the first quarter of 2014.

On February 11, 2014, Republic announced the early termination of its 44 to 50 seat fixed-fee agreements with United Airlines and American Airlines, which were scheduled to terminate in 2014. These agreements wind-down beginning in March 2014 through August 2014 and will result in the indefinite grounding of 27 small jet aircraft.

In the first quarter of 2014, Republic recorded an impairment of its owned Embraer ERJ 140 aircraft of $19.9 million and an $18.4 million gain on its Chautauqua restructuring asset. The Company also sold one Embraer ERJ 145 aircraft for a book gain of $1.8 million during the quarter. The net of these three items improved pre-tax earnings by $0.3 million.

On April 4, 2014, Republic announced that members of the International Brotherhood of Teamsters (IBT) Local 357 failed to ratify a proposed four-year pilot labor agreement. The agreement would have significantly improved pay and work rules for our pilots.

On April 7, 2014, Republic’s Board of Directors authorized management to utilize up to $75 million of unrestricted cash to buy back common shares and/or early retire convertible debt during the next 12 months. Under the $75 million authorization, Republic may repurchase up to $50 million of common shares and early retire up to $50 million of convertible notes, or any combination thereof.

On April 7, 2014, Republic redeemed a $22.3 million convertible note, leaving $52.7 million remaining on the share repurchase and convertible debt retirement authorization. This will reduce the Company’s dilutive share count by about 2.2 million shares going forward.

“I am pleased we were able to report improved first quarter financial results despite the most severe weather events in a single quarter I can recall in my 27 years of experience in the airline industry. Our results demonstrate the stability and strength within our core fixed-fee business,” said Republic Airways Holdings Chairman, President and CEO Bryan Bedford. “We are committed to our guiding principles and strengthening our brand reliability and product quality for our partners, shareholders and employees,” Bedford said.

Republic Airways Holdings, based in Indianapolis, Indiana, is an airline holding company that owns Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Embraer ERJ 170-100SU N806MD (msn 170000019), as a spare aircraft, completes its Republic Airlines (2nd) flight into Charlotte.

Combined Route Map:

Republic Airways Holdings 5.2014 Route Map

Republic Airways (Republic Airlines): AG Slide Show