American Airlines 1997 Annual Report Download - page 14

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THE AIRLINE GROUP
12
Fleet of the Future
American’s 20-year aircraft acquisition agreement with Boeing,
finalized in November, ensures that the company will contin-
ue to operate one of the youngest and most technologically
advanced fleets in the airline industry.
The Boeing deal gives American preferential pricing status,
as well as very flexible purchase rights for as many aircraft as it
needs during the next 20 years. The purchase rights will enable
American to acquire new aircraft on much shorter advance
notice than has previously been required, which means we will
be better able to plan for both aircraft replacement and fleet
growth, and to optimize aircraft size and range to match the
industry’s cyclicality and our changing competitive needs.
Another important benefit of the new contract is that as
we move toward a more common, all-Boeing fleet over the
next two decades, we should see a significant reduction in
operating, training and maintenance costs.
American’s initial firm order is for 106 aircraft, including
75 737s, 12 757s, 11 777s and eight 767s. The 737s and
757s will ensure the efficiency of our domestic fleet, and the
longer range aircraft — 767s and 777s — will give us the
equipment necessary to expand our already strong networks
in Europe and Latin America and to serve additional routes
to Asia. In addition, we expect that a yet-to-be-offered,
super-long-range version of the 777 will enable us to serve a
number of Asian destinations beyond the reach of the long-
Aircraft mechanic
Rebecca McDaniel con-
stantly looks for better
ways to do her job, an
ever-important task as
American expands its
fleet. She has submitted
69 money-saving sug-
gestions to American’s
IdeAAs In Action pro-
gram, and her 1997
ideas alone will
save American
$40,000
a year.