American to firm up 787 order, add two 777s and firm up MAX

American Airlines will firm up 42 orders for the Boeing 787, its 737 MAX order and add two 777 orders upon bankruptcy court approval, according to an SEC filing today.

American’s plans to acquire 75 787s had always been contingent on a new pilot contract–which has come through the bankruptcy process. The MAX orders, placed in July 2011, also were never firmed up due to the bankruptcy filing the next month.

Two new 777 orders were unconnected to the 787 and MAX orders.

From the SEC filing:

The Restructured Aircraft Purchase Agreements will provide for certain concessions and savings to American in connection with the acquisition by American of the 737 aircraft, the 787 aircraft and aircraft spare parts. The Restructured Aircraft Purchase Agreements will also provide for the substitution of up to 20 787-8 aircraft for 787-9 aircraft, an accelerated delivery schedule for the 787 aircraft with deliveries scheduled to commence in November 2014 and to continue in each calendar year through September 2018, and the confirmation of the purchase of the Boeing 787 aircraft, which previously had been subject to certain reconfirmation rights.
Under the Restructured Aircraft Purchase Agreements, as of January 31, 2013, American will have firm aircraft orders for 111 737 aircraft, 18 777 aircraft and 42 787 aircraft, with the option to purchase 40 737 aircraft, 13 777 aircraft and 58 787 aircraft.
MAX Aircraft Purchase Agreement. The Restructuring Agreement further provides that, upon approval by the Court, American will enter into a definitive purchase agreement (the MAX purchase agreement) pursuant to which American will acquire 100 MAX aircraft, equipped with new, more fuel efficient engines. The MAX purchase agreement will constitute the definitive purchase agreement contemplated by and will supersede the agreement entered into by American and Boeing on July 19, 2011 (the 2011 MAX order) that provided for the commitment of American to purchase such MAX aircraft (referred to in the 2011 MAX order as 737RE aircraft). The 2011 MAX order was subject to a number of contingencies, including the parties entering into a definitive purchase agreement and Boeing’s approval of the launch of the Boeing 737 re-engined aircraft program, which was approved in August 2011. Under the MAX purchase agreement, the MAX aircraft are scheduled to be delivered in each of the years 2018 through 2022. In addition, under the MAX purchase agreement, American will have the option to purchase 60 additional MAX aircraft in the years 2022-2025.

13 Comments on “American to firm up 787 order, add two 777s and firm up MAX

  1. Will American firm up the Airbus order as well or drop it? Given that it can be assumed that Airbus offered a massive discount to AA and reached their main strategic goal (to force BCA to follow up with the MAX), this might be good news, as this would free up early slots which can be sold for a better price.

  2. CRORpower :
    Will American firm up the Airbus order as well or drop it?

    Dallas News’ Aviation Blog is reporting that the Airbus CEO + NEO deal was firmed on Friday:

    American said it and Airbus signed a definitive agreement Friday for American’s purchase of 260 aircraft from the Airbus A320 family.

    American previously had disclosed plans to acquire 130 of the current generation of Airbus A320, with the first to arrive in July and the last to be delivered in 2017. It also plans to acquire another 130 from the next-generation Airbus A320neo family…

    See the last two paragraphs of this story.

    • I think next to the 260 orders American also had options on the A320, 365. Not an indication they want to drop them.

  3. Doesn’t AA need bankruptcy court approval for the Airbus orders, too?

    With AA firming up an order for 111 B-737NGs (and 40 options), why would they also need 130 A-319/-321s?

    So, AA firmed up orders for 181 Boeing aircraft, and another 111 airplanes options (plus 100 B-737MAXs)?

    • I think AA selected so many A321s and A321NEO for their superior pay load range, airfield performance from the carabien, comfort transcon and cargo capability. They’ll replace 757s and 767s. The MAX flies far too but needs bigger fuel tanks and long runways for that.

      • Where did you get that from? AA said when they placed both orders they did it because their order was to big for one OEM to deliver the airplanes when they wanted them. Both the Boeing order and the Airbus order were to replace the MD-80s and the older B-757s, not the B-767. There is no change in the fuel capacity for the B-737MAX. They still have more range than the A-32X-NEO, and AA (currently) has no LDs to fit the A-32X family.

      • That’s not why AA took them. AA took them because they got a great deal/financing and delivery positions-just like they did with their Boeing single-isle planes.

        During the order, AA specifically stated no one manufacturer would be able to deliver the planes they need in the time needed.

      • kc135topboom :
        Where did you get that from? AA said when they placed both orders they did it because their order was to big for one OEM to deliver the airplanes when they wanted them.

        While this is a common enough interpretation, American itself did not explicitly stated this in the original press release.
        Also note how American bypassed the 737-700 and -900 for the A319ceo and A321ceo (and the A320ceo for the 737-800). Which means it looks very much like they had specific roles for each type in mind given their route profiles, rather than just evenly distributing the order among A319/737-700, A320/737-800 and A321/737-900.

        kc135topboom :
        Both the Boeing order and the Airbus order were to replace the MD-80s and the older B-757s, not the B-767.

        Again, American’s press release at the time begs to differ. It specifically mentions the 767-200 as a reference point for fuel consumption improvements generated by the 737 and A320 families. Same in the PowerPoint presented at the time (to be found here as a PDF).

  4. anfromme :While this is a common enough interpretation, American itself did not explicitly stated this in the original press release.Also note how American bypassed the 737-700 and -900 for the A319ceo and A321ceo (and the A320ceo for the 737-800). Which means it looks very much like they had specific roles for each type in mind given their route profiles, rather than just evenly distributing the order among A319/737-700, A320/737-800 and A321/737-900.

    With the A321, AA can have an exclusive first class transcontinental section if they use Door L2 for Boarding (NB. On the A321, L2 is a full sized type-1 exit door and larger than doors R2, L3 and R3). With the 737-800, you’ve got to board through Door L1

    [youtube http://www.youtube.com/watch?v=20zshmYxhLw&w=560&h=315%5D

  5. kc135topboom :
    Where did you get that from? AA said w….and the older B-757s, not the B-767. There is no change in the fuel capacity for the B-737MAX. They still have more range than the A-32X-NEO, and AA (currently) has no LDs to fit the A-32X family.

    AA says they will use them to replace 767-200s.
    http://www.aa.com/content/images/aboutUs/newsroom/bg_apollo_fleet_renewal.pdf

    737NG have bigger fuel tanks then A320s. The lower BPR 737NG engines have higher sfc’s, but the bigger tanks compensate a lot.

    “Have no LD to fit the A32X family”. No, that doesn’t surprise me 😉

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