As part of what it's calling the largest aircraft order in aviation history, AMR Corp., the parent company of American Airlines, has ordered 460 narrowbody jets from Airbus and Boeing, which it will use to replace and transform its fleet over the next five years and solidify its fleet plan into the next decade, it announced this week.
The jets — from the Boeing 737 and Airbus A320 families, which offer a 35 percent reduction in fuel cost per seat versus the MD-80, and a 12 and 15 percent fuel cost reduction per seat, respectively, versus the 757 and 767-200 — will be acquired beginning in 2013 through 2022. According to AMR, they'll allow American to reduce its operating and fuel costs, deliver state-of-the-art amenities and maximize financial flexibility.
"With today's news, we expect to have the youngest and most fuel-efficient fleet among our peers in the U.S. industry within five years," said AMR Chairman and CEO Gerard Arpey. "This new fleet will dramatically improve our fuel and operating costs, while enhancing our financial flexibility. More than that, with the power of our network and partnerships and the dedication of our people, we will be an even stronger competitor."
Together, Airbus and Boeing have given American approximately $13 billion of committed financing that fully covers the first 230 deliveries.
"Today's announcement paves the way for us to achieve important milestones in our company's future, giving us the ability to replace our narrowbody fleet and finance it responsibly," Arpey continued. "This was an incredible opportunity for our company that presented itself from two great manufacturers. And, given our aggressive and ambitious fleet plans, we feel fortunate to have both Boeing and Airbus standing beside us to meet our needs."
In addition to its initial order of 460 aircraft, American's agreements with Airbus and Boeing include options and purchase rights for 465 additional aircraft through 2025. Its agreement with Airbus is especially notable because it provides that American in 2017 will become the first network U.S. airline to begin taking delivery of "next generation" narrowbody aircraft — from the Airbus A320neo (New Engine Option) family, which is approximately 15 percent more fuel-efficient than today's models — that will further accelerate fuel-efficiency gains.
"While our network is our core product, designed to take our customers where they most want to go, our fleet is a critical element of our ability to deliver a superior travel experience, safely, reliably and comfortably," said Virasb Vahidi, American's Chief Commercial Officer, who leads American's fleet and network planning and strategy. "With today's announcement, I am confident that we will be able to meet our customers' needs for decades to come with a modern fleet that will be second to none."