American Airlines defers delivery of aircraft

Airline Industry Information, Nov 22, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

American Airlines parent company AMR Corp. has deferred the delivery of 54 Boeing aircraft over the next five years to save itself USD2.7bn.

The 47 Boeing 737-800 aircraft and seven Boeing 777 aircraft were schedule for delivery between 2006 and 2010. The airline will still take delivery of two Boeing 777s in 2006 to aid its international expansion plans.

Like most major US carriers American Airlines has been struggling to cut costs as it struggles against intense competition on its domestic routes, a capacity surplus and high fuel costs across the board. The airline's Chief Finance Officer James Beer said that the move would enhance its ability to restructure, reports AFX.

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