Sections

ideals
Business Essentials for Professionals

Boeing Convinces American Airlines To Cancel Airbus Deal For Its 787s


04/08/2018


Boeing Convinces American Airlines To Cancel Airbus Deal For Its 787s
Airbus had been expecting to expand sale of its wide-body aircraft in the U.S. and that ambition was given a jolt after an order for forty-seven 787 Dreamliners of Boeing were placed by American Airlines Group which would be used for long-range flying and this will also expand the fleet of the airlines of its advanced carbon-composite aircrafts.
 
And according to a statement by the airlines, a purchase order of 22 of Airbus’s twin-aisle A350 jets that had been placed with the European plane maker by its predecessor company was cancelled by the airlines in a related development. The new order placed with Boeing is worth $12.3 billion without the discounts that plane makers tend to give later.
 
This development highlights the challenge for Airbus in the U.S. market which is the largest market for aircrafts and aviation and where Boeing is the dominant player.  This is the second time in this year itself that Boeing has been able to convert a client of Airbus wide-body planes to change decision and purchase the 787. In the earlier incident, orders for Airbus’s A330-800 was cancelled earlier in the year by Hawaiian Airlines following which the airlines ordered 10 Boring Dreamliners.
 
Some of the oldest plane in its fleet of long range jets would be replaced by American while I its fleet would also be simplified by the addition of the Boeing aircrafts which are also very fuel-efficient. A competing bid by Airbus for the A330neo.was cancelled by American earlier.
 
“This was a difficult decision between the Boeing 787 and the Airbus A350 and A330neo,” Robert Isom, American’s president, said in the statement. “In the end, our goal to simplify our fleet made the 787 a compelling choice.”
 
American Airlines would be able to reduce costs of maintenance and training as the company will able to reduce the number of wide-body aircraft types that is in its fleet from five to three with the addition of the Boeing Dreamliners. It would be too uneconomical to operate the limited number of A350s that it had ordered, American had previously said. A small fleet of 20 Embraer SA E190 jets would also be replaced by it according to current plans. In Both 2016 and 2017, American had delayed taking the A350s.
 
25 aircrafts of the 787-9 variant which is the most advanced type of aircraft of Boeing and 22 787-8s which are the smallest crafts of the jet family, are included in the deal. It would also more than double the number of Dreamliners with American. General Electric’s GEnx-1B engines would be fitted in all of the new 787s.
 
On the other hand, talks and sales campaigns with over 100 airlines – that still use the older model of Airbus’s A330neo, is ongoing for Airbus’s A330neo, Airbus has said.
 
(Source:www.bloomberg.com)