American Airlines Flight 718, a Boeing 737 MAX, takes off from Miami International Airport en route to New York on December 29, 2020 in Miami, Florida.
Joe Rydell | Getty Images
American Airlines Emirates Airlines said today, Monday, that it has ordered the purchase of 260 new narrow-body aircraft, including dozens of aircraft. Boeing Long delayed 737 Max 10.
The order includes 85 Boeing 737 Max 10 aircraft and 85 Airbus A321neo aircraft, which it says will help it improve short-haul domestic and international flights. The Fort Worth, Texas-based airline has also ordered 90 Embraer E175 aircraft.
The US request is a vote of confidence for Boeing, which has been plagued by a series of production defects and certifications for new aircraft that have taken years longer than originally expected. Scott Kirby, CEO of the rival carrier United Airlinessaid earlier this year that his airline was considering fleet plans without its Max 10 planes due to delays.
US Chief Financial Officer Devon May said the airline had additional options from Airbus for new aircraft as well as financial protection with Boeing, and the ability to take already certified models if Max 10 certification was delayed further.
“In no way do we want to be financially disadvantaged by any of these aircraft orders,” May told reporters on Monday.
May said America currently expects Max 10 deliveries to begin in 2028.
He noted that the Max 10, the largest in the Max family, will not have lie-flat seats, but will be designed like some of the airline's A321neo planes, with about 190 seats and about 20 first-class seats up front.
American said it will also convert orders for 30 Boeing 737 Max 8 jets, a model that is already a staple of its fleet, to the larger 737 Max 10 jets. The order includes purchase options for another 193 aircraft from the three manufacturers.
Boeing is facing additional scrutiny from the Federal Aviation Administration after a door plug exploded in midair during an Alaska Airlines flight in January. That flight was operated on a Boeing 737 Max 9 aircraft.
American Airlines plans to develop first class on some of its narrowbody planes, the carrier said Monday coinciding with its first investor day in more than six years. Starting in 2025, the company will modernize its older Airbus A319 and A320 aircraft to increase the number of first class seats from eight to 12 and from 12 to 16, respectively.
The airline plans to retire its 50-seat fleet of single-class regional aircraft in favor of two-class aircraft, with in-seat power and satellite Wi-Fi, by the end of the decade. The aircraft will be operated by wholly-owned US regional airlines.
Aircraft orders were included in previous US capital spending targets.
Airlines are facing high demand for first class and other premium seats, as more customers collect points using credit cards and appear willing to shell out more space on board.
American said Monday it expects about 80% of its revenue this year to come from “premium content,” meaning products beyond the cheapest tickets, and its loyalty program, compared with a 70% share in 2017.
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