American Airlines Buys Up To 100 Boeing 787-9’s
October 15th, 2008
American Airlines confirmed its intention to purchase up to 100 Boeing 787-9 Dreamliners, while also announcing a third quarter profit of $45m.
American has taken 42 787-9’s as firm orders, with the balance made up of purchase rights. First delivery has nominally been identified as September 2012. Deliveries are scheduled to run until 2018, with purchase rights exercisable during 2015 through 2020. Based on current list prices, the deal is worth around $8bn.
Since the last delay to the 787 programme in April 2008, no firm date aside from early 2012 had been given for entry into service of the second model in the 787 line up - however, despite the ongoing strike and contrary to belief of some sceptics, delivery positions fore key customers such as American Airlines are indeed available.
Air New Zealand is the launch customer for the 787-9. However, two 787-9 customers had privately opined to this site that it feared that as a result of the existing delays to the 787-8, the 787-9 would also suffer a knock on effect by being delayed up to six months. As of yet, Boeing has not delayed the 787-9 beyond what was formally announced in April.
“The 787 will help reduce our fuel and maintenance costs, lessen our environmental impact, and support our goal of providing industry-leading products and services over the long haul. Fortunately, our agreement with Boeing, our long-time partner, allows for significant flexibility to manage our fleet replacement and growth plans in the way that best meets all of our stakeholders’ interests,” said American CEO Gerald Arpey.
Image courtesy of American Airlines
The news comes a welcome boost to Boeing, which has now entered a second month of strike action and is also due to commence talks with the second biggest union, the SPEEA toward the end of this month.
The order forms yet another blow to Airbus A350XWB, which has thus far only managed to secure two US customers in Hawaiian Airlines and US Airways, both of whom have precarious financial status. American Airlines, however, is largely regarded as one of the few well known carriers that avoided Chapter 11, in the wake of the atrocities on September 11, 2001.
“American has been a valued and enduring Boeing partner for many years. Its selection of the Boeing 787 Dreamliner for fleet replacement and renewal represents strong validation of the 787’s advanced technology and superior operating economics, especially in light of high fuel prices and the need for more environmentally progressive airplanes,” said Ray Conner, Vice President Sales, Boeing Commercial Airplanes.
American Airlines also reaffirmed its commitment to work toward gaining anti-trust immunity with oneworld partners Iberia and British Airways.
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Entry Filed under: Airlines
16 Comments Add your own
1. johnny stick | October 15th, 2008 at 5:31 pm
Now if we can only get this strike settled, then we can get this party started:-)
2. boeing investor | October 15th, 2008 at 5:43 pm
Totally agree johnny!
I read on another website that the 787 was sold out till 2017 etc.
Obviously Leeham’s site was wrong again….as usual!
3. Chris Wallace | October 15th, 2008 at 6:08 pm
Last I heard the earliest 787 slots are now 2020.
Good news for Boeing. And I wonder if any other “major” customers have reserved early delivery slots?
I’d still like to know who has that 23-frame UFO order. AC seems the best bet, but you would think they would have announced by now…
4. Field Veteran | October 15th, 2008 at 8:09 pm
Our top management is very well educated but lack the “common sense” needed to move forward. Their “supply chain” is the reason Boeing has egg in their face in regards to the 787, the hottest selling aircraft EVER! The “competitive edge” their fighting for in regards to material handling (New Breed) is just a joke. Why are standards in Everett common to all programs locked in a room in the 40-54 building? I’ll tell you why, the folks trying to build the 787 are unaccustomed to waiting ½ a shift for a washer available across the street at New Breed. The 787 folks have been helping themselves to parts staged for other programs because the New Breed just can’t react quickly enough given our schedule driven environment. We haven’t even got one of these birds in the air yet because of the “Supply Chain” Boeing holds so dear. There’s no sense of urgency instilled in these non-union vendors, why should they care if Boeing succeeds, it’s just another minimum wage job to them. That’s reality Jim. Why has Field Operations (EDC) fought for standards to remain on sight? We know what it means to have pilot’s onboard, engines running and you need a part, NOW! When you’re delivering a 145 million dollar aircraft going straight into service there’s no time to fiddle around with ordering a part from across the street. Why is Boeing sending MPRF’s all over the world trying to get our global partners up to speed? These are the same 2000 MPRF’s Boeing so desperately wants to be rid of, HUH? Jim, you’d better come down out of your ivory tower in Chicago and have a chat with the men and women who have made and can continue to make this company successful. If you’ve got to much pride to do that maybe the BOD need to send you back to where you came from.
5. mike j | October 15th, 2008 at 9:49 pm
I want the strike over too.
Seems odd that airlines are STILL ordering with all the factors which seem opposed (delays, economy, strike, bailouts), maybe there is “something” they know that we don’t.
One obsevation I made on Sunday while I was on picket-duty near the Everett flightline, where 747s, 767s, 777s, (and maybe someday 787s) get final touchups:
There were at least four or five 777’s still there since August (which I had worked on when we weren’t yet on strike), and they looked like parts were STILL missing.
I’d venture a guess that the reason the strike didn’t resolve Monday is because there are still part shortages.
(My picket-duty-card goes until mid November, maybe Boeing and Union knows already how long the strike will last.)
(As an aside, last strike 2003, my picket-duty-card had October duty-times crossed off ahead of time, and lo-and behold the strike ended before October.)
Just a guess.
I always knew I was just a pawn in other people’s games. Oh well…
6. mike j | October 15th, 2008 at 10:07 pm
Order anouncement comes right after AIG bailout, go figure…
7. Motorhussy | October 15th, 2008 at 10:19 pm
The article describes the order as a blow to Airbus. Seeing as AA and AMR are not in any way loyal to or are regular Airbus customers, the 787 order could be seen as, at most, a disappointment to Europe’s global consortium - a blow infers that this was an unpredicted order that was in someway damaging to the unsuccessful tender.
Congratulations to both Boeing and AA, I doubt there is anyone with any enthusiasm for aviation that is in anyway surprised by this order.
8. Mike | October 16th, 2008 at 12:28 am
GEnx engines will look great and save tons of fuel on these AA 787s.
9. Reality check | October 16th, 2008 at 1:37 am
I work on the 787 progam and tell you, it is difficult like any other first airplane. But it is the number one selling airplane, because the IAM machinist are putting it together. The bad thing is what kind of inspection program does are partners have. We have to fix all there mistakes, documented or undocumented. We document and fix them, that is the Boeing way for a Air Worthiness cert. Only IAM can make a airplane put together I would fly in!
10. Emmanual | October 16th, 2008 at 4:33 am
You are hoping my friends that with new orders that money will trickle to IAM workers and we would go back to work soon. Our demands are too high.Folks who max out overtime with all the perks is over. I know too many folks who can not starve for thanksgiving wiil defect before they sit outside during winter. New hires have nothg to loose but their hubbger for a prize.
11. Emmanual | October 16th, 2008 at 4:35 am
OOPS that is hunger
12. BOEING777 | October 16th, 2008 at 6:47 am
Motorhussy -
Indeed it is a blow to Airbus given that it has lost AA as a key blue chip customer. I agree that AA is neither a loyal or big Airbus customer, in part down to Airbus’ own stupidity after the tragic AA587 crash, but to lose a major order like this can only really be a blow - just as it was a blow to Boeing when they lost the Emirates order to the A350XWB.
13. Motorhussy | October 16th, 2008 at 11:37 am
BOEING777
Do you think that anyone at Toulouse would have been surprised by this? If it were a blow, it was one they were expecting.
The EK loss to Boeing would indeed have been a blow as it was a hard and close fought competition with a carrier whose sense of loyalty is exclusively to itself. It could equally have gone the other way and the blow would have been to Airbus.
Put it this way, if the AA order had gone to Airbus, this would have been a blow to Boeing, a huge and one that no-one would have expected including Airbus.
No if IB goes the 787 way, that will be a blow to Airbus.
14. BOEING777 | October 16th, 2008 at 11:41 am
I agree, it was a blow Airbus was expecting - but as stated, Airbus’ shocking ignorance and deceit by playing “the blame game” in the wake of the AA587 crash has damaged relations with AA seemingly forever.
In that sense, I do agree with your view
The only reason why I likened it to a blow is because the A350XWB lacks a range of big blue chip customers like the 787.
Like the A380, the bulk of the A350 orderbook rests on airlines from the MidEast.
15. Trike | October 16th, 2008 at 8:43 pm
I don’t think it’s a secret AA are dirty on Airbus after the way they treated the AA587 accident so consequently it’s no surprise Boeing has cleaned up this order.
The Dreamliner must be closing on on the big 1,000 order mark and the first example has yet to get in the air - incredible!
16. Jeb | October 17th, 2008 at 2:00 am
So… anyone else wonder why they would paint a carbon fiber airplane “polished aluminum” color as depicted in the photo?
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