American Airlines orders 460 new planes from Boeing and Airbus

July 20th, 2011 - 6:40 pm ICT by BNO News  

FORT WORTH, TEXAS (BNO NEWS) — AMR Corporation, the parent company of American Airlines and American Eagle, on Wednesday announced a huge order with Airbus and Boeing to acquire 460 new aircraft to replace and transform American’s current fleet.

AMR Corporation said the company plans to acquire 460 narrowbody, single-aisle aircraft from the Boeing 737 and Airbus A320 families beginning in 2013 through 2022 - the largest aircraft order in aviation history. As part of these agreements, starting in 2017, American will become the first network U.S. airline to begin taking delivery of next generation narrowbody aircraft that will accelerate fuel-efficiency gains.

American also will benefit from approximately $13 billion of committed financing provided by the manufacturers through lease transactions that will help maximize balance sheet flexibility and reduce risk, AMR said It said the financing fully covers the first 230 deliveries.

Gerard Arpey, Chairman and CEO of AMR and American Airlines, said the huge order represents an important step in the company’s strategy to build a stronger foundation in the future. “We have a long track record of meeting our obligations to all of our stakeholders, including strategic partners, lenders, suppliers and investors,” Arpey said. “We believe this history continues to help us navigate today’s challenges while remaining focused on doing what’s necessary to position American Airlines for long-term success, and we look forward to working with Boeing and Airbus to achieve it. ”

Also on Wednesday, AMR Corporation reported a second quarter 2011 net loss of $286 million. It partly blamed increasing fuel prices for the negative performance.

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