American Airlines and American Eagle announce landmark narrowbody agreements
American Airlines and American Eagle announced landmark agreements with Airbus and Boeing to acquire 460 narrowbody aircraft, with deliveries running from 2013 through 2022. If options and purchase rights are exercised, the deals could total 925 aircraft, valued at approximately USD40 billion. The order is the largest in aviation history.
- Boeing order: American plans to acquire a total of 200 additional aircraft from the B737NG family, with options for another 100 B737NG family aircraft. 100 of the orders will be for Boeing's expected re-engined version of the B737NG, powered by CFM International's LEAP-X engine. No timetable was given for delivery. American has the flexibility to convert the new deliveries into variants within the B737 family, including the B737-700, B737-800 and B737-900ER. American will take delivery of the 100 current generation B737NG family aircraft from 2013, including three B737-800 options that had been exercised as of 01-Jul-2011.
- Airbus order: American will acquire 260 Airbus aircraft from the A320 family - 130 current generation A320s and 130 A320neos - and has taken 365 options and purchase rights for additional aircraft. The carrier will take delivery of the current-generation A320 family aircraft from 2013. American has the flexibility to convert its delivery positions into variants within the A320 family, including the A319 and A321. From 2017 American will begin taking delivery of 130 A320neo family aircraft.
The agreements with Boeing and Airbus will continue American's fleet rationalisation, transitioning from four fleet types (MD-80, B737-800, B757 and B767-200) to two (the B737 and the A320 families). With a total of 465 options and purchase rights from both manufacturers through 2025, the agreements give American the flexibility for replacement as well as growth opportunities. American also will benefit from approximately USD13 billion of committed financing from the manufacturers through lease transactions, maximising balance sheet flexibility and reducing risk. The financing fully covers the first 230 deliveries.
The new deliveries are expected to pave the way for American to have the youngest and most fuel-efficient fleet among its US airline peers in approximately five years. The Association of Professional Flight Attendants welcomed the (20-Jul-2011) acquisition. American was advised in the transaction by SkyWorks Capital, LLC. [more - APFA] [more - AMR Corp] [more - AMR Corp #2] [more - Airbus] [more - Boeing] [more - 'AMR reaches transformational agreements' presentation]
American Airlines: "Today's announcement paves the way for us to achieve important milestones in our company's future, giving us the ability to replace our narrowbody fleet and finance it responsibly. This was an incredible opportunity for our company that presented itself from two great manufacturers. And, given our aggressive and ambitious fleet plans, we feel fortunate to have both Boeing and Airbus standing beside us to meet our needs," Gerard Arpey, Chairman and CEO, Gerard Arpey.