Monday, January 14, 2013

American and Boeing closer to finalizing 787/737MAX deals

In a proposal revealed by Flightglobal's Stephen Trimble, AMR has proposed to finalize the 787 and 737MAX deals (both currently a purchase agreement) by the end of the month with some modifications.  With regards to the 787 there are two modifications:

1) Of the 42 787s that AMR intends to order, 20 will be for the 787-8 and 22 for the 787-9.  Previously AMR was going to order 42 787-9.
2) The first scheduled delivery of the 787-9 will be restored to the original 2014 time (November 2014).  The delivery time frame had slipped to beyond 2014 due to the production issues at Boeing.

This is just a proposal that AMR has to approval from the US Bankruptcy Court for the Southern District in New York.  The hearing is  to take place on January 23 and if the court (and creditors) gives its approval.  The firm order can be placed before the end of January for 42 787s and 100 737MAX.  Other changes to the purchase agreements includes a lower price on the737MAX and adding 60 737MAX options.  AMR will also have 58 787 options. that will be part of the contract.

AMR wold have to have negotiated the terms of the final contract with Boeing before filing the motion the the bankruptcy court and having the contract firmed before the end of the month so it does seem that Boeing is on board with AMR.

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