Saturday, April 7, 2018

American Ordered 47 DreamLiners and Cancelled A350 Order

       Today American Airlines suddenly became the Largest 787 customer for Boeing as they have announce Massive order for Dreamliners. This is the announcement mulling since last few weeks after American announced their plans to looking replacement for their Medium to long haul fleet. In last few months, American exercised options how to utilize the inherited A350 order from Legacy carrier "US Airways" Merger. In January there are news that American is looking to convert A350 order into A330Neo and it also exercising the 787 options it is holding.

        Despite maintaining a varied fleet, American stick to Grow its 787 fleet when News surfaced on last week of March that American talks on A330neo deal is over. The carrier decided to Grow its Medium to Long haul fleet based on Boeing DreamLiners. Today's order values at 12.3$ Bn American says and its merely a half of its value with customary discounts.Also Airbus reported that they cant able to beat Boeing on their pricing indicates that how Boeing wants to win this deal in order to snub A330 neo to get out of US markets. So one can assume the aggressive pricing by Boeing in this Deal.

        American currently having 951 airplanes in its fleet. Its having 23 767-300ER,15 A330-200,9 A330-300 and 47 777-200ER which needs soon to be replaced. In fact American ones looking at A330neo was a suitable replacement for its 767 and 330 fleet but dropped to maintain simplified fleet. American already having 35 DreamLiners in its fleet having a mix of 20 787-8 and 15 787-9. Its about to receive 7 more dreamlines in the coming years with 58 options left to be exercised. How ever there is no clarity whether the new order includes any of the exercised options. Now the new order consists of 22 more 787-8 and 25 more 787-9 with 28 options making the American largest 787 operator surpassing ANA which has ordered 83 DreamLiners. 

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