Horizon has ordered 30 Embraer jets with a list price of $2.8 billion, the sister company of Alaska Airlines said Tuesday.
Alaska Air Group’s Horizon Air unit has ordered 30 Embraer E175 jets to be delivered over three years starting in 2017, the company said Tuesday. The deal, which Horizon called its largest order since the airline was founded in 1981, also includes 33 options.
The order has a value of $2.8 billion at list prices, though large buyers typically get substantial discounts.
Horizon said it will use the 76-seat jets beginning in spring 2017 to serve sister company Alaska Airlines on “long, thin routes,” meaning routes that don’t have enough customers for a larger jet but are beyond the range of a turboprop.
The planes, made by Brazil’s Embraer, will enable Horizon to expand as well as replace 15 of Horizon’s leased Q400s. Those leased planes, built by Bombardier of Canada, are due to be returned in 2018.
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“The E175s position Horizon for growth beyond our current West Coast destinations while providing better customer utility in the growing Alaska Airlines network,” said Horizon Air President David Campbell in a statement.
It’s the second billion-dollar deal for Alaska Air Group this month. On April 4 it emerged as the winner in bidding for Virgin America, a $2.6 billion deal that was Alaska’s first acquisition in three decades.