American seeks court approval of modified Airbus order

Washington DC
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American Airlines parent AMR is seeking bankruptcy court approval for its order for 260 Airbus A320 family aircraft that includes newly agreed to cost savings for the carrier.

The Fort Worth-based airline will benefit from unspecified "savings" as a result of the amended order, according to a court filing on 2 January. It is unclear whether Airbus reduced the cost of the order or offered improved financing terms.

"New, fuel-efficient aircraft will allow the debtors to optimise fuel consumption, enable them to fully compete for their share of 'high value' customers and maximise their revenues, thereby assuring their long-term viability and profitability," says AMR in the filing. "The debtors' fleet plan is a fundamental element of their business plan and their successful emergence from chapter 11."

"The amendments to the prepetition Airbus agreement have only served to enhance this arrangement and the economics attendant thereto," adds the carrier.

The US Bankruptcy Court for the Southern District of New York approved American's request to continue pre-delivery payments to Airbus in May 2012.

American's order is split between 130 A319s and A321s with deliveries from July 2013 through 2017, and 130 A320neo family aircraft with deliveries from 2017.

Airbus and Boeing committed $13 billion in financing to support the order as well as a simultaneous one for 200 Boeing 737s.