American Airlines reveals Boeing 787 'Dreamliner' order worth up to $12.3 billion

Wire and staff reports | USATNetwork

American Airlines is ordering 47 new Boeing jets with a combined list price of $12.3 billion to replace some of its oldest planes.

The sides did not reveal details of the deal, though airlines typically negotiate sizeable discounts on such orders.

American is also canceling an order with Boeing’s European rival, Airbus, that was made last decade by US Airways prior to its merger with American.

Additionally, American delayed delivery of 40 other Boeing planes -- Boeing 40 737 Max jets -- that had been scheduled to arrive between 2020 and 2022

American announced the moves Friday. In its Dreamliner order, American is taking both the 787-8 and 787-9 variants of the twin-aisle jet. They are scheduled to join American’s fleet beginning in 2020.

The first arrivals will replace Boeing 767 jets, and later deliveries starting in 2023 will replace Airbus A330 and older Boeing 777 jets in American’s fleet.

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American already has 35 787s, which it flies on international routes. The carrier says it will have 89 787s in its fleet once all aircraft under its previous order and the order announced Friday are delivered.

The move formally cancels the US Airways order for 22 Airbus A350s that was initially made in 2005.

“We have two excellent partners in Boeing and Airbus and our relationship with both manufacturers goes back many years. Both offer specific aircraft that provide us with the right lift on specific missions across our global network,” American Airlines President Robert Isom said in a statement. “This was a difficult decision between the Boeing 787 and the Airbus A350 and A330neo and we thank both manufacturers for their aggressive efforts to earn more of American’s business. In the end, our goal to simplify our fleet made the 787 a more compelling choice.”

In canceling the order for the A350s, American expressed a preference not to add another type of aircraft to its already diverse fleet.

“Today’s announcement is influenced by our goal to simplify our fleet and reduce the number of aircraft types we operate. Our prior plan would have had us operating five widebody aircraft types, and with today’s announcement we will soon reduce that to three,” Derek Kerr, American's Chief Financial Officer Derek Kerr, added in the statement. “These new replacement aircraft are consistent with our previous plans for the size of our widebody fleet.”

“We see significant advantages to carrying common fleet types, including creating less friction in our operation when aircraft swaps are necessary, reducing inventory needs, and creating a more consistent service for customers and team members.”

Material from The Associated Press was used in this report.

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