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American Airlines Tenders Deal with Boeing for More 737’s, 787’s March 28, 2007

Posted by Andrew in Commercial Aviation.
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American Airlines announced today that they plan to take accelerated delivery of 47 Boeing 737-800 aircraft. The carrier recently embarked on a fleet renewal program, seeking to replace its aging MD-80 aircraft with Boeing’s more efficient model. Slipped innocuously within the press release was even larger news. According to the statement, American Airlines recently negotiated with Boeing “the right to purchase 787 aircraft.” While not a firm commitment, this admission is the firmest evidence yet that the carrier will purchase Boeing’s newest offering. American Airlines has refused to comment any further, but many industry analysts believe that the airline will sign a large deal within the year. Time is of the essence for American Airlines, even if the carrier is a very important customer for Boeing. Early delivery slots are dwindling; unless Boeing saved slots for American on the belief that the airline would eventually buy the 787. With the legacy carriers beginning to enjoy a rejuvenated market, a flurry of orders is expected in the coming months from American, United, and Delta Airlines as they upgrade their long-haul fleets to compete with international rivals.

Source: American Airlines

US Airways to Announce New Aircraft Order in April March 15, 2007

Posted by Andrew in Airbus, Boeing, US Airways.
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Legacy carrier US Airways plans to order new aircraft at the end of April, beginning an extensive revamp of their aging fleet. According to major news outlets, the carrier is evaluating proposals from Boeing and Airbus for both narrow and wide body aircraft. US Airways plans to reach a decision by April 30, choosing either the Boeing 737 or Airbus A320 in the narrow-body segment, and the Boeing 787 or Airbus A350 in the wide-body market. Since Airbus financed a hefty chunk of US Airway’s exit from bankruptcy several years ago in exchange for a loose commitment to the A350 program, many analysts believed that an Airbus order was a certainty. However, in response to the redesigns and delays that have come to characterize the A350 program, US Airways Chief Financial Officer recently quipped, “the A350 today is not the plane we ordered.” He added that the airline was contractually able to cancel the order, if it so desired. From all appearances, US Airways is serious about possibly ordering Boeing’s 787 offering. Industry sources indicate that Boeing has reserved production slots for US Airways– but they will be given to another customer if the carrier does not come to a decision quickly. No matter which carrier US Airways chooses, it will likely not receive new aircraft for a few years, as Boeing is rumored to be sold out of production slots in the short term. Airbus’ A350 offerings isn’t estimated to enter service until 2013, at the earliest. Additionally, US Airways is rumored to be in talks with Air Canada Airlines to purchase its fleet of Airbus A340-500 aircraft, with the hope that these aircraft could serve its proposed Philadelphia to Shanghai route. Air Canada dumped these aircraft in favor of Boeing 777 aircraft, citing significant operational savings of the Boeing aircraft over Airbus’s offering.

Source: Bloomberg.comĀ