Agreement includes 100 Next-Generation 737s with options for 40 more
Commitment to order 100 737s with new engines and options for 60 more
SEATTLE, July 20, 2011 - Boeing [NYSE: BA] confirmed that American Airlines has selected Boeing to provide 200 narrowbody airplanes, with options for 100 more, to accelerate its single-aisle fleet replacement.
The agreement includes 100 CFM56-7B-powered Next-Generation 737s, with options for an additional 40 airplanes. Boeing and American Airlines will work to finalize the agreement over the next several weeks, at which time it will be a firm order and posted to the Boeing Orders and Deliveries website.
In addition, American Airlines has committed to order a variant of the 737 featuring new more fuel-efficient engines, pending final airplane configuration and launch approval of the program by Boeing board of directors. This commitment for 100 airplanes, with options for 60 more, is the first of many commitments anticipated for this variant. The airplane would be powered by CFM International's LEAP-X engine.
"This agreement highlights our focus on investing in our fleet for the benefit of our shareholders, customers and employees," said Tom Horton, president, AMR Corp., the parent company of American Airlines and American Eagle. "The addition of these Next-Generation 737s will play a critical role in replacing our narrowbody fleet with more fuel-efficient aircraft offering state-of-the-art customer features."
American Airlines' current fleet of more than 600 Boeing airplanes includes 156 Next-Generation 737-800s delivered to date. The agreement builds on American Airlines' existing backlog of 64 Boeing airplanes consisting of 51 737-800s, seven 777-200ERs (extended range) and six 777-300ERs. In addition, American Airlines has an existing purchase agreement with Boeing to acquire an initial 42 787-9 Dreamliners, with the right to purchase up to 58 additional 787s.
"American Airlines is an industry leader whose vision and disciplined approach to growth has made it one of the largest airlines in the world," said Boeing Commercial Airplanes President and CEO Jim Albaugh. "This agreement will provide American Airlines with the most capable airplanes in the narrowbody marketplace and continue to deliver industry leading economics. Demand for the 737 remains very strong from customers around the world and we have deliberately retained delivery positions to meet the fleet requirements for all our valued customers."
Today's operators fly Next-Generation 737s that are five percent more fuel-efficient than the first airplanes delivered in 1998. Certification of additional improvements is underway which will be included in airplanes delivered later this year.
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.
To date, the Next-Generation 737 family has won orders for more than 5,700 airplanes and Boeing has delivered more than 3,700.
About the CFM International (CFM):
The CFM56-7B is the sole powerplant for the Boeing Next-Generation 737 family of aircraft. Today, more than 7,450 engines have been delivered to 190 operators around the globe and the company has a backlog of more than 4,000 engines still to be delivered. In July of this year, the company introduced the CFM56-7BE variant, which is the new production configuration for this engine. The CFM56-7BE-powered Next-Generation 737 enhanced airplane/engine combination will provide a 2 percent improvement in fuel consumption, which, in turn, equates to a 2 percent reduction in carbon emissions. Additionally, the enhanced -7B will provide up to 4 percent lower maintenance costs, depending on the thrust rating.
LEAP engines incorporate revolutionary technologies never before seen in the single-aisle aircraft segment. The new engine combines advanced aerodynamic design techniques, lighter, more durable materials, and leading-edge environmental technologies, making it a major breakthrough in engine technology. As a result, operators will achieve double-digit improvements in fuel burn, emissions, and noise while maintaining the benefits of CFM's legendary reliability and low maintenance costs.
CFM is the world's largest supplier of commercial aircraft engines. Its product line includes nine engine models for more than 30 commercial and military applications. The company was formed as a joint venture in 1974 and the two parent companies, GE and Snecma, have extended the partnership agreement to the year 2040.