SkyWest has ordered eight new E175 for operation with Alaska Airlines, adding to the 32 SkyWest E175 jets SkyWest already flies for Alaska. The E175 aircraft will fly exclusively with Alaska Airlines under a Capacity Purchase Agreement (CPA). The value of the contract, which will be included in Embraer’s second-quarter backlog, is US$399.2 million, based on list price. The 76-seat aircraft will be delivered in Alaska’s livery and three-class configuration, starting in 2022.
President and CEO of SkyWest, Chip Childs, said, “With these aircraft, we will have over 220 E175s, operating more than any other carrier in the world. Our customers love the E175; and we have great confidence in and appreciate our long-standing partnership with Embraer for more than 35 years.”
“We have navigated through the pandemic and we’re on a solid path to recovery. The E175 remains a key part of our strategy,” said Nat Pieper, Alaska Airlines senior vice president of fleet, finance and alliances. “We’re excited about growth in the years ahead, which has always been at the heart of Alaska’s DNA. The E175 is a terrific plane to help us add new routes and frequencies, and to complement our mainline aircraft to meet fluctuating demand with the right capacity.”
Alaska and its subsidiary Horizon Air have also ordered nine new E175 aircraft that will fly exclusively with Alaska Airlines under a Capacity Purchase Agreement (CPA). The value of the contract is US$449.1 million, based on current list prices.
Once all 17 E175 aircraft are delivered, Alaska Air Group will have 79 E175s in its regional fleet operated by Horizon and SkyWest.
Horizon is converting nine options from its April 2016 contract to firm orders. Added to Horizon’s three remaining firm orders on backlog, they will have a fleet of 42 E175s flying for Alaska Airlines, when all aircraft are delivered.
Alaska credits the E175 as a “lifeline for carriers” since they are suited for rebuilding frequencies and adding incremental capacity to meet rebounding domestic demand. “During 2020 it was the first aircraft type to bounce back, achieving 100% of Alaska’s 2019’s schedule by Nov. 2020,” says the airline in its order announcement. “Last October, the E175 started replacing larger aircraft on several intra-Alaska routes. Alaska Airlines has also been building its presence in California with the addition of new seasonal routes between cities in the Golden State and Montana with the E175.”
Aside from these Embraer aircraft, Alaska is also exercising options for 13 Boeing 737-9 MAX deliveries in 2023 and 2024.
"Regional aircraft play a huge role in Alaska's growing network," said Pieper. "As our network expands, regional aircraft connect smaller communities to our larger hubs providing critical feed to assist in the development of new markets."
Alaska announced a restructured agreement with Boeing in December 2020 to acquire 68 737-9 MAX aircraft between 2021 to 2024, with options for another 52 deliveries between 2023 and 2026. The airline will accept the first 13 options over two years: nine in 2023 and four in 2024.
"We are excited to exercise options for more 737-9s just months after committing to 68 firm deliveries. It's another indication that we're ready for growth," added Pieper.
Alaska has also announced today a new nonstop service to Belize City, Belize, in Central America from the West Coast.