Analysts say the fact that American is willing to commit to a widebody investment of this scale is a sign of the carrier’s confi dence in its business plan. The move appears part of the carrier’s strategic response to high oil prices. While other airlines have deferred aircraft orders, American accelerated its 737-800 deliveries, reasoning it was worth spending money to make its ageing fleet more fuel efficient.
Under the latest deal American would take delivery of 42 787-as between 2012- 18. The carrier would also secure options for an additional 58 787s, scheduled for delivery between 2015-20. An engine choice has not been revealed.
If it goes through, the initial order of 42 would boost Boeing’s 787 backlog beyond 930 aircraft, a remarkable achievement for an aircraft yet to fly. American would be the largest North American airline customer for the 787, and the fourth largest overall behind lessor ILFC, Qantas and All Nippon Airways.
The September 2012 first delivery target puts American toward the top of the delivery list for the -9 variant. Air New Zealand, the launch customer for the -9, is slated to receive its first aircraft earlier that year. American executives say the carrier has the option to switch the 58 purchase rights to another 787 variant, although the airline has yet to decide if it would be interested in the stretched -10 version that has been mooted.
CEO Gerard Arpey says the 787s will be used mainly for modernising American’s fleet, although they also provide expansion options. “We have a lot of flexibility to decide whether the aircraft are for replacement or growth,” Arpey says. The 787 deliveries will allow the carrier to begin replacing its 767s, as well as the Airbus A300s that are slated to be phased out of the fleet by the end of next year.
The airline put a significant caveat on the agreement – it can elect not to acquire some or all of the initial 42 aircraft “if it has not reached a satisfactory agreement with its pilots’ union.” Arpey stressed that this clause is unlikely to be needed, but it was included because the current pilot contract does not cover 787s.
Air Canada, currently the largest North American 787 customer, had to cancel an initial order for 787s in 2005 when it couldn’t reach agreement with its pilots. The carrier eventually signed on for 37 787s. The American pilots’ union welcomed news of the 787 deal. The APA said the move is “long overdue,” given that American operates “one of the oldest and least fuel-efficient fleets in the industry.”
In other fleet developments, American says it is weighing 737-800s or possibly – 900s as potential replacements for its 757s. The airline will “look at this [option] very carefully” in the next few years, Arpey says. American expects its existing 737-800 deliveries scheduled for next year will be affected by the Boeing strike, but doesn’t yet know the extent.
