Reuters: Hot Stocks: UPDATE 1-Embraer books $4 bln deal for American Eagle fleet

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UPDATE 1-Embraer books $4 bln deal for American Eagle fleet Jan 24th 2013, 12:51 Thu Jan 24, 2013 7:51am EST * Republic Airways orders planes for American regional fleet * Deal for up to 94 E-175s pending bankruptcy court approval * Embraer shares post biggest jump in two years (Adds share performance, details of contract, background) SAO PAULO, Jan 24 (Reuters) - Brazilian planemaker Embraer SA on Thursday clinched a deal worth up to $4 billion to supply larger regional jets for American Airlines' fleet, providing relief for its depleted backlog and boosting hopes for stable production this year. Shares of Embraer jumped 8 percent in early Sao Paulo trading, their biggest intraday rise in two years. Embraer and Republic Airways Holdings Inc signed a contract for 47 E-175 jets, with an option to acquire an additional 47 aircraft. The new aircraft will be operated by Republic under AMR Corp's American Eagle brand. The contract is the latest major order for bigger jets in U.S. regional fleets under renegotiated labor deals. In December, Canadian rival Bombardier Inc booked a deal for up to $3.29 billion in new regional jets for Delta Air Lines . Embraer's new deal is subject to court approval due to bankruptcy proceedings at American Airlines -- approval that Embraer said it expects by the end of March. That would allow delivery of the 76-seat jets beginning in the middle of 2013. The planemaker's output this year has hinged on securing demand for open production slots after a scarcity of big orders bled its order backlog, a pipeline of future revenue, to a six-year low. (Reporting by Brad Haynes; Editing by Chizu Nomiyama) Link this Share this Digg this Email Reprints

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