American Airlines Expected To Announce Jet Orders
FORT WORTH (CBSDFW.COM/AP) – American Airlines is expected to announce Wednesday a major order of new planes that could put pressure on other airlines to upgrade their fleets.
The Fort Worth-based airline is also expected to announce a first-quarter 2011 loss of around $250 Million.
KRLD’s Austin York reports:
Airline Analyst Denny Kelly says American is hoping that by dealing with Airbus it will force Boeing to make more fuel efficient planes. The deal could be a possible $20 Billion purchase.
Kelly says American is making the purchase to save money on fuel. The move will also give the airline a lucrative tax break.
Kelly says the timing of the purchase is odd, coming while the airline hasn’t signed a contract with their pilots, mechanics or flight attendants.
The board of American parent AMR Corp. was meeting Tuesday night, and last-minute negotiations could still affect American’s decision.
The airline could order up to 400 planes. AMR President Tom Horton is scheduled to appear on the CBS Early Show Wednesday morning.