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.
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.