Monocolumn: Airbus and Boeing Battle For American Airline's Next Generation Of Fuel-Efficient Airplanes
In today's column from luxury magazine, Monocle, American Airlines scores a superior deal on 460 fuel-efficient airplanes, by offering both Boeing and Airbus the job.
Monocolumn is Monocle's daily bulletin of news and opinion. Catch up with previous editions here.
Last week, American Airlines placed the largest single aircraft order in history. To replace its ageing fleet, the airline signed up for 460 narrow-body aircraft to be delivered over the next 11 years. What made the order even more significant was that American ordered 260 of these aeroplanes from European manufacturer Airbus, ending American’s two-decade long loyalty to Boeing.
American appears to have handled the negotiations craftily, pitting the two manufacturers against each other — Airbus desperate to break in, Boeing desperate to keep them — then sealing a great deal with both. The manufacturers combined to commit $13bn (€9bn) to financing the first 230 aircraft in the order, at no doubt much better rates than a bank would have given the airline.