American And Boeing Agree To Defer Almost All A/c

FWAAA

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Jan 5, 2003
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As I suspected (and posted several weeks ago), AMR and Boeing have reached agreement to defer all firm orders for 6 and 7 more years, except for two 777s which will be delivered in 2006 to help support hoped-for China and the new announced Japan services.

American Airlines, Boeing Reach Agreement to Defer Aircraft Deliveries

Monday November 22, 9:13 am ET

FORT WORTH, Texas, Nov. 22 /PRNewswire-FirstCall/ -- American Airlines and The Boeing Company announced today that American will defer 54 of 56 aircraft originally scheduled for delivery between 2006 and 2010. The delivery of 47 Boeing 737-800 aircraft and seven Boeing 777 aircraft will be deferred by seven years and six years, respectively, beyond their originally scheduled delivery dates. The arrangement allows American to postpone $1.4 billion of capital spending previously planned for 2005 through 2007 and a total of $2.7 billion in capital spending through 2010.

American will take delivery of two Boeing 777 aircraft in 2006, including one aircraft originally scheduled for delivery in 2007, to support its previously announced international growth.

"Deferring the delivery of 54 aircraft and the related capital spending for up to seven years is a very important milestone in American's Turnaround Plan. It will substantially enhance our ability to restructure our finances," said James Beer, American's Senior Vice President-Finance and Chief Financial Officer. "We very much appreciate the support shown to us by our partners at Boeing and look forward to a continuing robust relationship between our two companies," Beer said.

A Boeing spokesperson said that Boeing already has factored these changes into Boeing's financial guidance.

American Airlines' active fleet consists of over 730 aircraft, including 700 Boeing and McDonnell Douglas aircraft.

http://biz.yahoo.com/prnews/041122/dam012_1.html

http://biz.yahoo.com/ap/041122/american_boeing_1.html


Looks like good news and bad news. Good news in that capex spending will be way down over the next several years, bad news in that no new 777 routes will be possible.
 

AAmech

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Aug 22, 2002
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Right now its really great news as the LAST thing AA needs is to be spending precious cash on more aircraft. I would have liked to see them take more than 2 777's though.
 

aafsc

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Oct 29, 2004
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FWAAA said:
As I suspected (and posted several weeks ago), AMR and Boeing have reached agreement to defer all firm orders for 6 and 7 more years, except for two 777s which will be delivered in 2006 to help support hoped-for China and the new announced Japan services.
http://biz.yahoo.com/prnews/041122/dam012_1.html

http://biz.yahoo.com/ap/041122/american_boeing_1.html
Looks like good news and bad news. Good news in that capex spending will be way down over the next several years, bad news in that no new 777 routes will be possible.
[post="203087"][/post]​

They can get some additional 777's by substituting 767's on certain routes.
 

WingNaPrayer

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Boeing To Defer 54 AA Aircrafts Slated For 2006-2010



FORT WORTH, Texas -(Dow Jones)- American Airlines parent AMR Corp. (AMR) said Boeing Co (BA) agreed to postpone delivery of 54 aircraft, allowing AMR to defer $2.7 billion in spending.

In a press release Monday, the carrier said the 47 Boeing 737-800 and seven Boeing 777 craft came from a pool of 56 slated for delivery between 2006 and 2010.

In October, American warned it was shrinking its fleet after posting a third- quarter loss.

American said the aerospace giant would deliver it two of the large, twin- aisle Boeing 777 jetliners in 2006, in tune with the airline's plan for international flight expansion.

For its part, Boeing said it had already factored in the delayed deliveries to its guidance.

In October, Boeing projected delivery of 285 commercial airplanes in 2004 and 320 airplanes in 2005, with "even more" forecast for 2006. Airbus, mostly owned by the European Aeronautic Defence & Space Co.(5730.FR), expects to deliver at least 315 airplanes this year. Airbus usurped Boeing last year as the leading supplier of commercial jets.

American Airlines parent AMR Corp. (AMR) said Boeing Co. (BA) agreed to postpone delivery of 54 aircraft, allowing AMR to defer $2.7 billion in spending.

American Airlines said the postponement allowed it to push back $1.4 billion of capital spending slated for 2005 through 2007 and a total of $2.7 billion scheduled through 2010. Boeing stalled the 737-800 deliveries for seven years and the 777s for six years.

Amid rising fuel costs, fare competition and an overcapacity of seats, the air carrier warned in October that it would reduce capacity by the equivalent of 15 narrow-body aircraft next year.
 

JFK777

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I can appreciate the need for 2 777 but we could use 6, 8, 12 of them who knows, but the more the better. If AA is expanding across the Pacific in greater number with no net gain in 777's they are getting them from the latin & Atlantic flights. What no 777's to Buenos Aires & Sao Paulo? That would be an big mistake sending the signal those markets are less imortant then Asia, I wouldn't want to be downgauged to a 763. 10 years ago things were different, today a 763 is yeaterday's airplane. From all the Nagoya, Osaka,and Shanghai's I see AA advertise they need about 8 new 777's so they are 6 short. I can see Jfk-LHR with 763 & A300 again. We have been there and done that already, so lets get the right number of 777's and not go back to A300 at LHR.
 

Oneflyer

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Apr 26, 2004
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How long will RDU-LGW remain a 777?

The main and only reason why this route is still a 777 is that a local business, a drug company whose name slips my mind buys a ton of first class tickets which makes this route unusually profitable. Parts of next year it will be downgraded.
 

s80dude

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Oneflyer said:
The main and only reason why this route is still a 777 is that a local business, a drug company whose name slips my mind buys a ton of first class tickets which makes this route unusually profitable. Parts of next year it will be downgraded.
[post="203255"][/post]​


Glaxo Welcome
 

FA Mikey

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All the A300's are in the process of some heavy maintenance. They are about 1/2 way through the fleet. There is a long term plan for that plane here at AA.

Plus I am almost sure proud as boeing is of its planes abilities. That 2, 777's will not do the work of 32 A300's.
 

JFK777

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Aug 20, 2002
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It sounds like the best airplane for RDU-LGW is a 757 with a special Business Class configuration. Why would AA fly a 777 if only a few First Class seats were sold? Does that flight go out full( 777 full) almost every day or are the fares just so high? A luxury 757 looks llike the answer, if AA 20 club seats a day then lets cater to that market in an even more exclusive way. Air France now has A319 from CDG to the Middle East with long haul business class, I forget what they call the service, but its exclusive. AA should look at this concept for JFK/Bos to Europe as well as transcon. Let the Rdu 777 fly to Japan, LGW is a waste of a 777 except for DFW-LGW, where LHR is not an option. May RDU-LGW prosper.
 

Bob Owens

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Sep 9, 2002
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JFK777 said:
I can appreciate the need for 2 777 but we could use 6, 8, 12 of them who knows, but the more the better. If AA is expanding across the Pacific in greater number with no net gain in 777's they are getting them from the latin & Atlantic flights. What no 777's to Buenos Aires & Sao Paulo? That would be an big mistake sending the signal those markets are less imortant then Asia, I wouldn't want to be downgauged to a 763. 10 years ago things were different, today a 763 is yeaterday's airplane. From all the Nagoya, Osaka,and Shanghai's I see AA advertise they need about 8 new 777's so they are 6 short. I can see Jfk-LHR with 763 & A300 again. We have been there and done that already, so lets get the right number of 777's and not go back to A300 at LHR.
[post="203202"][/post]​


Sure, why dont you guys buy them, we already gave. I'd rather see a new car in my driveway than another new airplane for a company that claims they cant afford to pay us.
 

JFK777

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Aug 20, 2002
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AA should look into all business 737-800 for service to Europe, or First & Business Class only 757's. If this market exists AA should cater to it. AA should lookmat this service for South America too. They sell tons of expensive tickets in Sao Paulo and Buenos Aires, an all business flight with small crowds would appeal to this clientele too. That would be a first for South America. Could you see Aerolinias Argentinas flying a 737 with all business to Miami, I don't see it. If AA wants to continue to dominate South America it will have to come up with new ways. Just think while the exclusive 737 are in miami during the day it could fly from Miami to La Romana, enough high types go there to play golf that would be willing to pay for an exclusive product.


Another thing recently is Lufthansa's new First Class terminal in FRA, AA should look into something similar at JFK.
 

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