yuchung5

The first delivery in 2012 will happen only when those unions back to work in Boeing.

By the way, is 787 to replace AB6?

s80dude

That's the AA I'm talking about.... good to see them start looking at growth versus working with what they have. I hope that it all pans out, both for us as the employees and you as the passengers!

dayone

No doubt, as indicated by first delivery in 47 months of a "sold-out" and yet-to-be-flown airliner.

bernardd

Since the cabin width is between the 767 & 777 I'd get worried if they're trying to fit 9 wide seating!

FWAAA

Exactly. Boeing has pushed back the "entry into service" date of the 787-9 to 2012 (from 2010) and here is AA, practically first in line, as informed posters previously predicted.

Contrast that to dozens and dozens of nonsense posts from the airliners.net crowd over the years that AA had "better hurry and order the sold-out 787 before it's too late."

Probably not as much as it is to replace the 767-200s and 767-300s. For many years, Flyertalk (and airliners.net) gospel has been that Caribbean cargo demands would always require widebodies. With AA grounding all AB6s by next September (latest announced plan), it's apparent that AA feels it can do without some of that cargo capacity. No doubt there will be exceptions, but I wouldn't look for AA to devote 34 of these to the former AB6 routes.

PresRDC

Delivery schedules are never static and deals are always being done to swap slots. I am working one right now involving the A330. It's never dull.

FightingIlliniUAL

Hmmm, a shiny composite plane. How does that work?

FWAAA

Chrome.

FightingIlliniUAL

Or back to the grey color scheme?

AAFA

The pilots have been saying for the past year that we already had a secret purchase agreement for the 787's and that the APA has already laid out the ground work for an agreement and training on the new plane.

I copied and pasted the Q & A from the Jet Net site because it has no confidential info. These Q & A postings always read like a press release anyway. They don't ask us, they make up the questions and answers they imagine that we all would ask and then package them together probably so we post them on BB's and mail them to each other.

This is all the info we received.


15OCT08/1152
TO: ALL FLIGHT ATTENDANTS
RE: AMR FLIGHT RENEWAL PLAN- BOEING 787-9 ANNOUNCEMENT
WE ANNOUNCED TODAY OUR PLANS TO ACQUIRE NEXT GENERATION
BOEING 787-9 AIRCRAFT. WE HAVE ENTERED INTO A PURCHASE
AGREEMENT WITH BOEING TO ACQUIRE 42 FUEL-EFFICIENT 787-9
DREAMLINERS, WITH RIGHTS TO ACQUIRE UP TO 58 ADDITIONAL
787-9 AIRCRAFT.
PLEASE VISIT JETNET TO REVIEW THE SPECIAL JETWIRE THAT
INCLUDES A Q&A AND 787 FACT SHEET.
YOU MAY REFER CUSTOMERS TO AA.COM FOR INFORMATION ON 787-9
AIRCRAFT.

Wednesday, October 15, 2008
Second Special Jetwire - Wed., Oct. 15, 2008

American Airlines Takes Major Fleet Renewal Step; Plans To Acquire Next-Generation Boeing 787-9 Aircraft

Today American announced it will enter a purchase agreement with Boeing to acquire 42 fuel-efficient Boeing 787-9 Dreamliners, with rights to acquire up to 58 additional 787 aircraft.

"Even as we battle the challenges of volatile and historically high fuel prices and serious economic uncertainty, we must continue to carefully invest in our company for the long-term benefit of our shareholders, customers, employees and the communities we serve," CEO Gerard Arpey said. "The 787 will help reduce our fuel and maintenance costs, lessen our impact on the environment and support our goal of providing industry-leading products and services over the long haul."

Arpey went on to say the agreement to purchase the 787s is the latest example of AA's efforts to build a successful, competitive airline for the long-term while continuing to work to overcome the many immediate challenges facing the entire airline industry. The agreement would support American's wide-body replacement as well as the international growth that is expected after American, British Airways and Iberia achieve antitrust immunity and implement a joint business agreement for flights between North America and Europe. (An application for antitrust immunity is pending with the U.S. Department of Transportation).

The aircraft purchase agreement is an investment in the future of American Airlines - and one that is essential for positioning AA for success. The agreement also allows for significant flexibility to manage AA's fleet plan to meet the needs of our business.

Delivery Schedule
The Initial 42 Boeing 787-9 aircraft is scheduled for delivery beginning in September 2012 and ending in 2018. The 58 additional 787 aircraft may be scheduled for delivery beginning in 2015 and ending in 2020.

The 787 purchase agreement contains provisions that would allow AA to choose not to acquire some or all of the 42 initial 787s if it has not reached a satisfactory agreement with the Allied Pilots Association to operate the aircraft. The company must notify Boeing of its intent to purchase a 787 at least 18 months prior to a scheduled delivery date. While there can be no assurances, AA expects to reach such an agreement with the APA prior to the first notification date.

AA announced previously that it will take delivery of 76 more-fuel-efficient Boeing 737-800 aircraft in 2009 and 2010 as it replaces its narrow-body MD-80 fleet.

787 Purchase Agreement Q&A

AA TAKES MAJOR FLEET RENEWAL STEP
PLANS TO ACQUIRE BOEING 787-9 DREAMLINER


American announced it has entered into a new purchase agreement with Boeing to acquire 42 B787-9 Dreamliners scheduled to be delivered in 2012 and ending in 2018. The agreement also includes the right to purchase up to 58 additional B787 Dreamliners which may be scheduled for delivery beginning in 2015 and ending in 2020.

Questions & Answers

What are the benefits of this transaction for AA customers?
The B787 aircraft offers technological advancements and presents passengers with innovations including a new interior environment with enhanced air filtration, larger windows, more stowage space, improved lighting, and other passenger-preferred conveniences.

For example, the aircraft has the largest overhead bins in the industry, which are approximately 30 percent larger than comparable aircraft bins. The large 19-inch windows are designed to make the cabin feel more spacious. In addition, the improved air and water purification, new humidification techniques, and lower cabin altitude are expected to lessen customer fatigue. [Source: Boeing's site, newairplane.com]

Why did AA order B787s instead of more B777s?
The B777 is a good aircraft and will continue to serve AA's needs. The B787 is a next-generation aircraft and offers many benefits including:

Approximately 50 percent of each aircraft is made of advanced materials such as carbon fiber reinforced plastics
Improved aerodynamics
Advances in engine technology
Reduced maintenance requirements
Lower operating costs
More fuel efficient - approximately 20 percent over existing wide-body aircraft

Will the new planes have the Next Generation Business Class seat? How about the Flagship Suite Seats in first class?
AA has yet to decide on 787 cabin configuration.

How does this fit in with AA's overall fleet replacement plan?
This announcement is a continuation of AA's fleet replacement plan. AA previously announced it will take delivery of 76 more-fuel-efficient Boeing 737-800 aircraft in 2009 and 2010 as it replaces its narrow-body MD-80 fleet. AA has also announced the acceleration of its plan to retire 34 A300 aircraft by the end of 2009. By entering into this purchase agreement, AA is also planning to capitalize on advantages offered by next-generation aircraft to lower its operating costs.

Why didn't we choose to further accelerate the replacement of MD-80 aircraft instead?
AA also has wide-body aircraft replacement needs, and the company must ensure that it has the wide-body aircraft needed to maintain the vast route network upon which its customers depend.

What will happen if we don?t move forward and purchase these aircraft?
We have spent a lot of time analyzing what aircraft that would best meet the needs of our customers and our company - at the right price. The 787-9 is clearly the best option for our future. If we're not able to acquire these aircraft, it significantly limits our future opportunities. AA could still purchase B777s through its existing purchase agreement, but the technology advances in the B787 make it more economical and more environmentally friendly to fly than the B777.

How many of these anticipated aircraft deliveries are "firm" commitments?
The 787 purchase agreement contains provisions that would allow AA to choose not to acquire some or all of the 42 initial 787s if it has not reached a satisfactory agreement with its pilots union to operate the aircraft.

AA must notify Boeing of its intent to purchase a 787 at least 18 months prior to a scheduled delivery date, with the first scheduled delivery date in September 2012. While there can be no assurances, AA expects to have reached such an agreement with its pilots union prior to the first notification date.

What is the value of the transaction?
Based on average list price, the initial 42 787-9 aircraft would be worth approximately $8 billion. However, airlines, including American, typically negotiate discounts to stated list prices.

The additional 58 787-9 Dreamliners would be worth an additional $11.3 billion based on average list prices.

Does American have financing for these aircraft?
AA has not yet arranged financing for these aircraft. However, strong worldwide demand and the forecasted efficiencies for B787 aircraft support the expectation that these deliveries can be financed when we choose to do so.

Given the current state of the financial markets, how certain are we that financing will be available?
The expectation is that there would be sufficient demand for the B787 to facilitate financing because of its lower operating costs and other next generation attributes. Several financing options are available, and we expect that financing should be available as needed.

Can we really afford new aircraft right now?
We have always taken the long-term view. Even though our industry is facing some of its most daunting challenges, AA is confident in its future and believes this is the right decision for our collective future.

How many months prior to delivery can AA reduce the number of initial aircraft?
AA must notify Boeing of its intent to purchase a 787 at least 18 months prior to a scheduled delivery date, with the first scheduled delivery date in September 2012.

Are the seven 777 aircraft to be delivered in 2013-2016 impacted by this new purchase agreement?
No. These deliveries are still planned for 2013-2016.

Is the Allied Pilots Association (APA) supportive of this agreement?
We expect the pilots' union to be supportive of this decision because of the strengths of this particular aircraft and the benefits it is expected to bring to AA's customers, employees, communities, and other stakeholders.

What contractual issues must be resolved with the APA before taking delivery of these aircraft?
AA must negotiate a successor contract with APA that allows AA to operate the aircraft to its satisfaction.

Why do we have to negotiate a pay rate with the APA before taking delivery?
AA has to negotiate a successor contract, not just a pay rate, so all of the factors driving the economics of this aircraft are known. While our contract with the APA requires that we reach agreement on a wage rate prior to operating this aircraft, there are also other factors that need to be considered. It would be unwise to commit that amount of money, take delivery of these aircraft and not have a firm deal with the APA in place.

What options for crew rest does the 787-9 offer?
The aircraft offers built-in crew rest areas for both pilots and flight attendants. Pilots will have a dedicated rest area located near the cockpit; flight attendants will have a dedicated rest area near the rear of the aircraft.

Are there any contractual issues that need to be negotiated with the Association of Professional Flight Attendants (APFA) or Transport Workers Union (TWU)?
No.

Where will the B787s be maintained?
This has not yet been determined.

How will employees in Maintenance & Engineering be affected by this announcement?
The planned delivery of the 42 new 787-9 aircraft is spread fairly evenly over the years, and once fully integrated, would represent a very small percentage of our overall fleet - about 6.5 percent. We would still have a great number of aircraft that would need to be maintained.

Where can I find more information about the 787?
In addition to the Boeing sites, the Seattle Post Intelligencer has created a special section on its Web site full of program details at www.newairplane.com

onedog

I have to say that seeing this announcement cross the wires made my day. Way to go AA.

hillrider

That would make a ton of sense, but the press release states "American has yet to decide on a specific cabin configuration or engine type for its 787s and is in the process of determining the specific wide-body aircraft in its fleet that the 787 would replace."

In other words, it seems a top-down decision thick in PR and loopholes and very thin in details.

YVR Cockroach

Engine type for the 787 is pretty flexible. Supposedly the a/c can take either RR or GE engines, and even have one of each, by just changing software. AA may be waiting to see which engine holds up best in service.

traveladam

Should we proactively start a new thread: "Will my 787 flight have NGBC?"

ndhapple

If they were looking to replace the AB6's with 787's I would think they would have opted more for the 787-3's which have roughly the same range and passenger capacity as the old AB6's. I would assume that the 787-9's would be largely to replace the 767-300's (which they are slightly larger than) primarily for Latin American and European service.