American Airlines to buy 787 from Boeing for US$12 billion

American Airlines (AA) is planning to buy 47 new 787 jets from Boeing to replace ageing Boeing 767s from the fleet. The contract of 47 787s is worth around US$ 12 billion. The latest purchase will cancel an order for 22 Airbus A 350s.

World’s biggest airline will announce the new order of 787s on Monday. Both have yet to comment about the deal.

The decision to terminate the Airbus purchase was considered a difficult decision, said American Airlines President Robert Isom. Airbus was inked by US Airways before it merged with AA.

The boss thanked Boeing and Airbus for “their aggressive efforts to earn more of American's business.”

Boeing 787 as fuel efficient jet

AA also praised Boeing 787s as jets that boost fuel efficiency, offer customer satisfaction, broader range, and reduce maintenance cost.

AA deal with Boeing offers the option for the air carrier to buy 28 additional Dreamliner aircraft.

AA operates 35 787s and has plans to add seven more by the end of 2019. With the new order of additional 787 jets, AA will operate three different wide-body plane types in its fleet- Boeing ’s 767, 787, and Airbus’ ’ A330-200.

The airline decided to postpone the shipment of 40 Boeing 737 Max aircraft, expected to arrive between 2020 and 2022. The company did not tell the specific time of the plane’s arrival instead.

Boeing ’s shares plunged

Boeing also felt honoured that AA is deepening its commitment to the U.S manufacturer amid President Trump’s protectionism stance.

Despite receiving orders, Boeing ’s shares dropped 0.3 percent after hours on Friday. AA’s stocks went up 0.3 percent after hours after a 3.6 percent fall to wrap up Friday’s session at US$ 50.29.

The aeroplane maker said it had received 1,350 registered orders for 787 planes.

AA’s last significant aircraft order was in 2011 when it bought 460 narrow-body aircraft. The purchase consisted of 260 from Airbus and 200 from Boeing . The total value of the deal was around $40 billion.

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