Wednesday, July 20, 2011

American Airlines confirms deal to buy 460 aircraft, spin off American Eagle


American Airlines Inc. is buying 460 airplanes from Airbus and the Boeing Co., the company announce Wednesday, calling it the biggest aircraft purchase in aviation history.
As part of the deal, American is getting about $13 billion in committed finance from the two companies, covering the first 230 deliveries.

These new deliveries are expected to pave the way for American to have the youngest and most fuel-efficient fleet among its U.S. airline peers in around five years, American said in its announcement.

Parent AMR Corp. disclosed the major purchase as it announced a $286 million loss for the three months ended June 30.

In addition, AMR outlined its plans to spin off its American Eagle regional carrier to AMR shareholders in coming months.

Strategically, AMR believes a divestiture would be beneficial, as it would help ensure American maintains bloodthirsty rates and services for its regional feed into the future,” AMR said. “A divestiture would also provide Eagle an opportunity to vie for the business of other mainline carriers and allow the carrier to expand its operations.

Among other major disclosure, American said it expects to cut back its flight schedule between the United States and Europe. It is evaluating its winter flying, and anticipate making seasonal route and day-of -week flying adjustments in early 2012 to improve its results,” the company said.

It also wants the suppleness to suspend its new route from New York’s Kennedy International Airport and Tokyo’s Haneda International Airport.

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