AMERICAN SIGNS BOEING DEAL.Byline: Katie Fairbank Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the signed up Boeing to be its sole supplier of up to 630 jets to refurbish re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur its fleet over the next 20 years. The unprecedented agreement announced Thursday adds flexibility that could help smooth out the boom-or-bust cycles that have plagued airlines and aircraft makers. American is committed to buying 103 jets by 2001, a deal valued at about $6 billion. The airline also has the right to buy an additional 527 planes by 2018. At prices that have already been set, American can take a new plane with as little as 15 months notice. Traditional options require 24 to 36 months notice and don't allow the price protections. With more time to gauge its needs, American might be able to avoid an oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies of airplanes and available seats that many blame for the huge losses that characterized the airline business just a few years ago. ``We want to grow at the same rate as the marketplace,'' said Robert Crandall, chairman of American's parent corporation, AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. . American's order for 103 planes covers 12 Boeing 777 wide-body jets, 75 Boeing 737s, and 16 of the company's 767 and 757 jets. ``Our new partnership with Boeing is a completely new way of doing business,'' Crandall said. ``It gives American a unique way to replace its existing fleet with great flexibility and at fully competitive prices.'' The airline will phase out its McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. Corp. jets, now nearly half the 640 jets in American's fleet. Older Boeing 727s and Fokker 100s will also be phased out. Crandall said using just one brand of jets will benefit American by reducing training costs and maintenance costs. The arrangement with Boeing is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent ratification of a tentative agreement between American and the Allied Pilots Association. CAPTION(S): Photo Photo: (Color) Jim Dees carries his son Josh, 3, at an exhibit of one of the planes Boeing will supply to American Airlines. Associated Press |
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