American orders 130 A320s, 130 A320neos, 100 737NGs; also commits to 100 of 'new 737 variant'

By Aaron Karp | July 20, 2011

American Airlines 737-800. Photo: Courtesy, American Airlines.

American Airlines announced one of the largest aircraft orders in commercial aviation history Wednesday, signing up for 130 Airbus A320 family aircraft, 130 re-engined A320neos, 100 CFM56-7B-powered 737NGs and also committing to order 100 of a new variant 737 with CFM Leap-X engines. Boeing and Airbus will help finance the aircraft, AA said.

It did not announce an engine selection between the Leap-X and Pratt & Whitney's PW1100G for the A320neos it ordered.
In addition to the firm order for 100 current version 737NGs, AA took 40 options. Boeing and AA said in a statement that they will "work to finalize" the order for 100 of the apparently re-engined 737. "Pending final configuration of the new 737 variant and board of directors' approval, Boeing will take another giant step forward in improving the operating economics of this already market-leading airplane," the manufacturer stated. It noted that in addition to 100 aircraft to be ordered, AA will take 60 options on the new variant.

The carrier said it will begin taking delivery of the newly ordered aircraft in 2013, with the last of the 460 total aircraft committed to arriving in 2022. In a letter to employees, AA Chairman and CEO Gerard Arpey said the orders "are supported by approximately $13 billion of committed financing (loans) from the manufacturers through lease transactions on the first 230 aircraft that will help maximize our balance sheet flexibility and reduce risk."

He added, "The transactions we have been able to structure represent an opportunity that is virtually unprecedented in our industry's history. We are putting our partners' capital—more capital than we would otherwise be able to raise effectively on our own—to work for our company."

Separately, AA said it intends "to move forward with the divestiture of American Eagle," its regional affiliate. Arpey stated, "We believe this will enable us, over time, to ensure that we maintain market rates for the feed traffic to AA through Eagle or other regional airlines, while also providing Eagle with an opportunity to compete for new business and grow."

Finally, the Dallas-based airline disclosed that it incurred a net loss of $286 million in the second quarter, widened from an $11 million deficit in the year-ago period.

Discuss this news 12

20 Jul12:18

I don't understand why AA is

By Chuck

I don't understand why AA is getting A320's. They have 737's , and are ordering more. Why get another airplane from a different manufacturer and is new to the fleet. As well as the same capacity as the 737. It doesn't make sense to me.

20 Jul12:44

While I am glad to see AA

By Anonymous

While I am glad to see AA ordering Boeing, I'm also disappointed to see them ordering Airbus, especially more Airbus than Boeing. I wish they would have ordered an additional 200-250 aircraft (composing entirely of 738, 738NEO, 739ER, and 739ER-NEO) to replace their MD-80s, and 752s.

20 Jul14:32

260 firm orders for Airbus

By PlaneMad

260 firm orders for Airbus plus 365 options!
That is a MASSIVE victory for the A320 family at 737′s home turf.
Boeing management took a big gamble claiming that the 737NG was capable enough vs the A320 but their 2nd biggest customer (after Southwest) brought them down to earth in a burning and crushing fashion.

20 Jul14:53

The 320 is the better

By Another Airline Employee

The 320 is the better aeroplane. Always has been. It might disgust Americans, but one wonders how well a 737 might have landed on the Hudson...

20 Jul14:57

Slipping ever faster into the

By Another Airline Employee

Slipping ever faster into the state of a Third World country, it is sad to see that people are not willing to recognize that there is a whole other world beyond the oceans, and the parallels, and the rivers, that might just even have better products. Like aircraft.

20 Jul16:52

Hang on to your hat PlaneMad,

By Anonymous

Hang on to your hat PlaneMad, once the specs for the new B-737 is out , the 365 options for Airbus A-320NEO will drop like a rock. Also I don't understand why an american airlines buy European made airplanes, they should play the politics like some European airlines do when they buy Airbus. Unfortunately politics now play a big role with the purchase of airplanes

20 Jul18:09

Congratulations to Airbus, as

By Fleabyte

Congratulations to Airbus, as they continue to run circles around...Boeing. Boeing needs some real sales executives, ...- almost like they are blind while Airbus has a crystal ball.

...
And at the end of the day, the Boeing account manager let Airbus come in with the initial offer and did not sound the red alarm, and Boeing final offer was a vague, non board approved re-engine concept "that American intends to order", that sounds like throwing a bone to the dog you just kicked out of the house.

...
The decline of the American business model... Airbus - a multinational consortium originally formed by four governments is running circles around what was once a crown jewel of American private Industry.

21 Jul02:22

You hang on to the facts

By Another Airline Employee

You hang on to the facts first, kiddo. It was Lufthansa that ordered the 737 from Boeing, actually suggesting it to them. Even Air France flies Boeing, and British Airways only went from practically all Boeing to Airbus because it bought British Caledonian, or whoever it was, and they had 10 320s. Now BA has many airbus, even the Brits found they are the better airplane...

And let me scream in disgust that in the past American carriers have bought French Caravelles, Brit BAC 1-11s...Isn't it true: the American Century has come and gone; it lasted the famous 15 minutes.

21 Jul04:45

Apart from the discussion

By International Airline Pilot

Apart from the discussion which airplane type has the highest merits, what I frankly don't understand is how it's possible that an airline (any airline) can announce "one of the largest orders in commercial aviation history" (order 360 airplanes), while it "disclosed that it incurred a net loss of $286 million in the second quarter, widened from an $11 million deficit in the year-ago period." Isn't this what is (and has been for a long time) wrong with this business model? The USA is just short of bankrupt, entirely, as a country! People should worry where the money is coming from...

21 Jul05:22

I am very intrigued as to how

By PlaneMad

I am very intrigued as to how the 737Re will be able to compete with the neo while having a 12" smaller fan!
Their difference in fuel burn will be massive!

21 Jul17:03

Until Airbus started in the

By Anonymous

Until Airbus started in the late 70's, 95% of all passenger airplanes in the "free" world where Boeing, Mc Donell Douglas and Lockheed.

We must stop whining and moaning. Now it is Europe's turn. History did not end with this AA's order and we may climb back to the top some day (with China's permission).

16 May03:03

Loans are the best way to

By poly

Loans are the best way to fulfill our desires,loans is the best medium for it,