United Airlines, the wholly owned subsidiary of
United Continental Holdings Inc.
) entered into a deal with partner SkyWest Airlines - an
affiliate of SkyWest Inc. Per the Capacity Purchase Agreement
(CPA) between the two carriers, SkyWest will run 40 Embraer 175
aircraft under the United Express brand.
In late April, United Airlines struck a deal with the Brazilian
planemaker Embraer to buy 30 of its E175 planes. The recent
contract of United with SkyWest is an addition to the month-ago
The airplanes - which are scheduled to be delivered through 2014
and 2015 - are the first 76-seat jets operating on a regional
basis in the United Express fleet. Designed with 12 first-class
seats, 16 Economy Plus coach seats with extra legroom, 48 coach
seats, wider seats with more aisles space and larger overhead
bins, these jets aim to offer a more comfortable flying
experience to passengers.
These dual-class aircraft will replace United's older 50-seat
regional jets that are proving expensive due to high fuel prices.
With the new airplanes, United will be able to save 10% fuel per
passenger as well as emit less harmful gases.
On the other hand, the agreement between SkyWest and Embraer
carries the option of purchasing another 100 E175s, making the
contract value worth $4.1 billion. If SkyWest decides to go for
another 100 sets of E175s, Embraer is estimated to receive an
additional $4.1 billion.
United Airlines is in constant endeavor to expand its route
network with the most advanced and upgraded aircraft along with
rendering top-class services to flyers. Early this week, the
The Boeing Company
) 787 Dreamliner aircraft with service between Houston
Intercontinental and Chicago O'Hare.
United Continental, which operates in the airline industry with
the likes of
Delta Air Lines
Southwest Airlines Co.
) , currently retains a Zacks Rank #3 (Hold) rating.
BOEING CO (BA): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis
SOUTHWEST AIR (LUV): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
To read this article on Zacks.com click here.