American Airlines Signs Jet Deals

American Airlines Group Inc. (AAL) signed agreements with Bombardier Inc. (BBD.A.T, BBD.B.T, BDRBF) and Embraer S/A (ERJ, EMBR3.BR) to purchase 90 new 76-seat regional jets, a multibillion-dollar order coming just after the airline completed its merger with US Airways Group Inc.

American has firm orders for 30 Bombardier CRJ900 NextGen aircraft, with options for up to 40 more. Bombardier said the firm order contract is valued at about $1.42 billion and could increase to about $3.38 billion if the 40 options are converted to firm orders.

American also has firm orders for 60 Embraer E175 type aircraft with options for up to 90 more. Embraer said the firm orders have a value of $2.5 billion.

Earlier this week, American Airlines Group was created after AMR Corp.'s American Airlines stepped out of bankruptcy and merged with US Airways, creating the world's largest airline by traffic. Under the terms of the stock-swap merger, US Airways shareholders received 28% of the new company's shares, while AMR's creditors and equity interests were slated to receive the rest.

Kenji Hashimoto, American Airlines Group's senior vice president of regional carriers, said the new regional jets will improve economic efficiencies by lowering operating costs and will be an important element in building up the company's regional subsidiary.

American Airlines Group shares closed Wednesday at $25.99.

Embraer shares recently rose 3.8% to 18.36 Brazilian reais.

Write to Ben Fox Rubin at [e-mail]

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