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Old Oct 15, 2008, 9:50 am
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AA Orders 42 787 "Dreamliners" (+ 58 on options)

Just on CNBC. If there's already a thread please delete.
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Old Oct 15, 2008, 9:51 am
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Originally Posted by Ltgfrk
Just on CNBC. If there's already a thread please delete.
I just saw it too and was searching for a thread. Holy moley.

http://www.cnbc.com/id/27198167/site/14081545

Options on 59 more.
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Old Oct 15, 2008, 9:51 am
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787 order

Boeing and AA announced that AA ordered 42 787's. Of course, who knows when and whether AA will actually get them.
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Old Oct 15, 2008, 9:52 am
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American Airlines Announces Plans to Acquire Boeing 787-9 Dreamliners

Under Purchase Agreement with The Boeing Company, American Plans to Buy 42
Fuel-Efficient Boeing 787-9 Dreamliners, with Rights to Acquire up to 58
Additional 787s
While American Battles Near-Term Challenges, it will Continue to Invest in
its Long-Term Future

FORT WORTH, Texas, Oct. 15 /PRNewswire-FirstCall/ -- American Airlines,
Inc., a wholly-owned subsidiary of AMR Corporation (NYSE: AMR), announced
today that it has entered into a purchase agreement with Boeing (NYSE: BA)
under which American intends to acquire an initial 42 Boeing 787-9
Dreamliners scheduled for delivery beginning in 2012 and ending in 2018,
with the right to purchase up to 58 additional 787s that may be scheduled
for delivery beginning in 2015 and ending in 2020. The purchase of the
initial 42 787-9 aircraft is subject to certain contingency provisions, as
more fully described below.

AMR Chairman and CEO Gerard Arpey said the agreement to purchase 787
Dreamliners is the latest example of the Company'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.

Arpey said the agreement would support American's wide-body replacement
efforts 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. The airlines have an application for antitrust immunity pending
with the U.S. Department of Transportation. (For more information about
American's application for antitrust immunity, visit
http://www.moretravelchoices.com.)

"Even as we battle the challenges of volatile and historically high
fuel prices and serious economic uncertainty, we must continue to prudently
invest in our Company for the long-term benefit of our shareholders,
customers, employees and the communities we serve," Arpey said. "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."

"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.

The 787 Dreamliner will offer passengers a better flying experience and
provides airline operators greater efficiency, Conner added.

According to Boeing, the technologically advanced 787 will use 20
percent less fuel than today's airplanes of comparable size, provide
airlines with up to 45 percent more cargo revenue capacity, and present
passengers with innovations including a new interior environment with
enhanced air filtration, larger windows, more stowage space, improved
lighting, and other passenger-preferred conveniences. To date, Boeing says
it has received nearly 900 orders for the 787 Dreamliner from more than 55
customers worldwide.

The 787-9 is designed to carry up to 290 passengers. With a range
capability of up to 8,500 nautical miles, it is expected that the 787-9
could operate on every route American serves today, while offering
potential to support new routes if business conditions warrant. 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.

American 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.

American also has undertaken multiple initiatives over the past several
years to enhance its existing fleet with improved cabin interiors, onboard
services and passenger amenities. These efforts have included installing
new premium class seating, with the next-generation Business Class seats
introduced for the 767-300 and 777. In addition, American added two new
First Class seats to the 777 and standardized the fleet in 2007 and 2008
with the addition of Flagship Suite seats for those flying transpacific
routes.

American enhanced inflight entertainment with the current trial for
Gogo(R) inflight broadband Internet service, available on the 767-200.
American also installed new LCD monitors, digital entertainment equipment
for Coach passengers and personal entertainment devices for First and
Business Class customers on the 767-300, 767-200 and 777 aircraft. American
continues to invest in its food and beverage products with the launch of
its menu variety program for First and Business Class customers and new
buy-on-board options.

The 787 purchase agreement contains provisions that would allow
American 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. American must notify Boeing of its intent to purchase a 787
at least 18 months prior to its scheduled delivery date, with the first
scheduled delivery date occurring in September 2012.

While there can be no assurances, American expects to have reached such
an agreement with its pilots union prior to the first notification date.

Forward looking statements disclosure

Statements in this release contain various forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which represent the Company's expectations or beliefs concerning
future events. When used in this release, the words "expects," "plans,"
"anticipates," "indicates," "believes," "forecast," "guidance," "outlook,"
"may," "will," "should," "seeks," "targets" and similar expressions are
intended to identify forward-looking statements. Similarly, statements that
describe the Company's objectives, plans or goals are forward-looking
statements. Forward-looking statements include, without limitation, the
Company's expectations concerning operations and financial conditions,
including changes in capacity, revenues and costs; future financing plans
and needs; fleet plans; overall economic and industry conditions; plans and
objectives for future operations; and the impact on the Company of its
results of operations in recent years and the sufficiency of its financial
resources to absorb that impact. Other forward-looking statements include
statements which do not relate solely to historical facts, such as, without
limitation, statements which discuss the possible future effects of current
known trends or uncertainties or which indicate that the future effects of
known trends or uncertainties cannot be predicted, guaranteed or assured.
All forward-looking statements in this release are based upon information
available to the Company on the date of this release. The Company
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events, or
otherwise.

Forward-looking statements are subject to a number of factors that
could cause the Company's actual results to differ materially from the
Company's expectations. The following factors, in addition to other
possible factors not listed, could cause the Company's actual results to
differ materially from those expressed in forward-looking statements: the
materially weakened financial condition of the Company, resulting from its
significant losses in recent years; the ability of the Company to generate
additional revenues and reduce its costs; changes in economic and other
conditions beyond the Company's control, and the volatile results of the
Company's operations; the Company's substantial indebtedness and other
obligations; the ability of the Company to satisfy existing financial or
other covenants in certain of its credit agreements; continued high and
volatile fuel prices and further increases in the price of fuel, and the
availability of fuel; the fiercely and increasingly competitive business
environment faced by the Company; industry consolidation; competition with
reorganized carriers; low fare levels by historical standards and the
Company's reduced pricing power; the Company's need to raise substantial
additional funds and its ability to do so on acceptable terms; changes in
the Company's corporate or business strategy; government regulation of the
Company's business; conflicts overseas or terrorist attacks; uncertainties
with respect to the Company's international operations; outbreaks of a
disease (such as SARS or avian flu) that affects travel behavior; labor
costs that are higher than those of the Company's competitors;
uncertainties with respect to the Company's relationships with unionized
and other employee work groups; increased insurance costs and potential
reductions of available insurance coverage; the Company's ability to retain
key management personnel; potential failures or disruptions of the
Company's computer, communications or other technology systems; changes in
the price of the Company's common stock; and the ability of the Company to
reach acceptable agreements with third parties. Additional information
concerning these and other factors is contained in the Company's Securities
and Exchange Commission filings, including but not limited to the Company's
Annual Report on Form 10-K for the year ended December 31, 2007.

About American Airlines

American Airlines, American Eagle and the AmericanConnection(R)
airlines serve 250 cities in 40 countries with more than 4,000 daily
flights. The combined network fleet numbers more than 1,000 aircraft.
American's award-winning Web site, AA.com, provides users with easy access
to check and book fares, plus personalized news, information and travel
offers. American Airlines is a founding member of the oneworld(R) Alliance,
which brings together some of the best and biggest names in the airline
business, enabling them to offer their customers more services and benefits
than any airline can provide on its own. Together, its members serve nearly
700 destinations in over 140 countries and territories. American Airlines,
Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation.
American Airlines, American Eagle, the AmericanConnection(R) airlines,
AA.com, We know why you fly and AAdvantage are registered trademarks of
American Airlines, Inc. (NYSE: AMR)

Current AMR Corp. releases can be accessed on the Internet.
The address is http://www.aa.com


SOURCE American Airlines, Inc.
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Old Oct 15, 2008, 9:56 am
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^ good news
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Old Oct 15, 2008, 9:58 am
  #6  
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Let's have 8-across seating in coach, and true lay-flats in Business class, please!
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Old Oct 15, 2008, 10:01 am
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How real is the order?

The Press Release carries the sentence "American must notify Boeing of its intent to purchase a 787 at least 18 months prior to its scheduled delivery date, with the first scheduled delivery date occurring in September 2012." which begs the question how committed AA actually are to these 42 aircraft? Sounds like they can walk away relatively easily any time up to Spring 2011.
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Old Oct 15, 2008, 10:03 am
  #8  
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Originally Posted by bernardd
How real is the order?

The Press Release carries the sentence "American must notify Boeing of its intent to purchase a 787 at least 18 months prior to its scheduled delivery date, with the first scheduled delivery date occurring in September 2012." which begs the question how committed AA actually are to these 42 aircraft? Sounds like they can walk away relatively easily any time up to Spring 2011.
Continuance of AA's preferred customer status with Boeing?
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Old Oct 15, 2008, 10:08 am
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Originally Posted by bernardd
How real is the order?

The Press Release carries the sentence "American must notify Boeing of its intent to purchase a 787 at least 18 months prior to its scheduled delivery date, with the first scheduled delivery date occurring in September 2012." which begs the question how committed AA actually are to these 42 aircraft? Sounds like they can walk away relatively easily any time up to Spring 2011.
That's not shocking considering the gentleman's agreement AMR has had with Boeing for some time.
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Old Oct 15, 2008, 10:14 am
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Originally Posted by ndhapple
That's not shocking considering the gentleman's agreement AMR has had with Boeing for some time.
Yep CO/AMR both have such and construct their contracts in such a manner, but at the same time Boeing is really needing to get their unions back to work or they won't have any 787's to deliver in 2011!
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Old Oct 15, 2008, 10:15 am
  #11  
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Just received the following email from AA:

American Airlines Plans To Acquire Boeing 787 Dreamliners

October 15, 2008

Dear Holtju2,

As American Airlines continues to focus on improving the travel experience for our customers – especially our business and premium travelers – we are investing in industry-leading products and services that we believe you will appreciate. Today, marking the latest investment in your travel comfort, American announced that we have entered into a new purchase agreement with Boeing and intend to acquire 42 B787-9 aircraft scheduled for delivery beginning in 2012 and ending in 2018, with the right to purchase up to 58 additional 787s.

The new 787 Dreamliners will support American's wide-body replacement efforts, as well as 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.

Boeing's Dreamliner aircraft offers a new level of comfort for our passengers. It features improved air and water purification systems, as well as new humidification techniques and lower cabin pressure, which are expected to reduce passenger fatigue. In addition, the 787 advanced engine design provides a quieter operation, with an expected noise footprint 60 percent smaller than other aircraft of similar size, benefiting those in the air as well as those on the ground. The plane's lower overall weight and improved design means we also will reduce our impact on the environment by burning less fuel.

The 787 aircraft also has the largest overhead bins in the industry – approximately 30 percent larger than comparable aircraft bins. The large 19-inch windows are designed to make the cabin feel more spacious. While American has not made any decisions about the configuration of the aircraft, the 787 is designed to carry up to 290 passengers.

This is our latest step in a series of fleet renewal efforts. American announced previously that we will take delivery of 76 fuel-efficient Boeing 737-800 aircraft in 2009 and 2010 as we replace our narrow-body MD80 fleet. We've also undertaken multiple initiatives over the past several years to enhance our existing fleet with improved cabin interiors, on-board services and passenger amenities on the 767-300, 767-200 and 777 aircraft. Additionally, we continue to invest in the food and beverage product with the launch of our menu variety program for First and Business class customers and new buy-on-board options.

We hope you enjoy the improvements we have been making and that you look forward to the new 787 Dreamliner aircraft and all the updated features it will offer. For more details about our exciting news announcement today, visit AA.com.

As always, thank you for your business and continued loyalty. We look forward to serving you onboard soon.

Sincerely,
Rob Friedman
Rob Friedman
President, AAdvantage Marketing Programs
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Old Oct 15, 2008, 10:27 am
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I am liking it!!!! Way to go AA!!^ When these come, may I humbly suggest HKG as a destination? <GTITAN ducking the arrows, slings, protestations, disagreements and the like that will come from that suggestion>. Safe Travels Y'All.
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Old Oct 15, 2008, 10:28 am
  #13  
 
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Originally Posted by YVR Cockroach
Continuance of AA's preferred customer status with Boeing?

Maybe it's also to put pressure on AA's pilots to agree new terms for longer routes - presumably AA managers can threaten "we'll cancel if you don't work with us".
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Old Oct 15, 2008, 10:36 am
  #14  
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Originally Posted by bernardd
[B]how committed AA actually are to these 42 aircraft? Sounds like they can walk away relatively easily any time up to Spring 2011.
There's no doubt in my mind that you'll see them pulling back from the order if the antitrust application (with BA/IB) doesn't go through. The type of airline that AA will be in the future (global competitor or just super-regional) is in large part in the hands of the (unfortunately projectionist) DOT and Congress.
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Old Oct 15, 2008, 10:38 am
  #15  
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Originally Posted by 3Cforme
Let's have 8-across seating in coach, and true lay-flats in Business class, please!
Completely agree, but the way AA has been trending I'd be more worried that they are seriously looking at ways to fit a 10-across configuration.
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