American Airlines, Boeing reach agreement to Defer Aircraft Deliveries

American Airlines is to defer 54 of 56 Boeing aircraft originally scheduled for delivery between 2006 and 2010. The delivery of 47 Boeing 737-800 aircraft and seven Boeing 777 aircraft will be deferred by seven years and six years, respectively, beyond their originally scheduled delivery dates. The arrangement allows American to postpone $1.4 billion of capital spending previously planned for 2005 through 2007 and a total of $2.7 billion in capital spending through 2010.

American will take delivery of two Boeing 777 aircraft in 2006, including one aircraft originally scheduled for delivery in 2007, to support its international growth.

"Deferring the delivery of 54 aircraft and the related capital spending for up to seven years is a very important milestone in American's Turnaround Plan. It will substantially enhance our ability to restructure our finances," said James Beer, American's Senior Vice President-Finance and Chief Financial Officer. "We very much appreciate the support shown to us by our partners at Boeing and look forward to a continuing robust relationship between our two companies," Beer said.

A Boeing spokesperson said that Boeing already has factored these changes into Boeing's financial guidance.

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