American expects new 737 engines in 2018
Dallas Business Journal - by By Matt Joyce , Staff Writer
Date: Tuesday, August 30, 2011, 11:38am CDT
Boeing sees ‘overwhelming demand’ for 737 model with new engines
American Airlines said Tuesday, that it expects to start flying Boeing 737s with a redesigned engine in 2018.
The announcement from American (NYSE: AMR) followed a vote by the Boeing Co. Boeing Co.
Boeing names new 737 model: 737 MAX
In July, American Airlines announced plans to acquire 460 new aircraft from Boeing (NYSE: BA) and Airbus. The Fort Worth-based airline said the plan would give it the youngest and most fuel-efficient fleet in the industry.
American said it plans to acquire a total of 200 aircraft from the 737 family, with options for another 100. That includes taking delivery of 100 aircraft from Boeing’s current 737 family starting in 2013.
Starting in 2018, American expects to be a launch customer for Boeing's re-engined 737. American said the new engine enhance its fuel-efficiency gains.
American’s commitment to the plan was contingent on the Boeing board’s approval of the 737 engine re-design.
American has not detailed the financial arrangements of the acquisition, but said it will benefit from about $13 billion of “committed financing from the manufacturers through lease transactions that will help maximize balance sheet flexibility and reduce risk.”