American Airlines parent AMR continues to work towards replacing older fuel inefficient aircraft in its fleet through its latest decision to widen the number of Boeing 737-800 deliveries in the 2009-2010 time frame by six aircraft for a total delivery stream of 76 planes.
The amended deal with Boeing is part of American's strategy to replace is MD-80 aircraft, with 36 737s scheduled for delivery in 2010 followed by 40 in 2010. Previously, the airline had delivery commitments for 70 aircraft through 2010.
American still has firm commitments for 11 737s for a 2013 delivery date, and in a statement explains it continues to evaluate its opportunities for MD-80 replacement with 737s.
To support this transaction American says it has backstop financing in place for roughly two-thirds of its 2009 and 2010 deliveries, subject to certain terms and conditions. The company says it could finance all 2009 737 deliveries under that agreement if it elects to do so.
"Other than this financing arrangement, American currently has no committed financing for any aircraft that it is committed to purchase or that it may order," the carrier explains.
In a filing with US regulators American explains payments for its 737-800 and 777 purchase commitments for the remainder of 2008 are roughly $400 million, $1.1 billion in 2009 and $785 million in 2010. Commitments for 2012 total $218 million and $1 billion for 2013.
Previously, American has explained its fleet revamp entails the retirement of 10 Airbus A300s, 30 MD-80s, 37 regional jets and 26 Saab turboprops by year-end.
Source: Air Transport Intelligence news
Source: Air Transport Intelligence news
