American Airlines Announced an Order for 42 Boeing 787-9

Even though most global carriers tighten their belts for the bumpy economic times ahead, at least one US carrier is planning for the next upturn. American Airlines announced an order for 42 787-9s on 15 October, with an option on 58 more. Delivery is due from 2012 onwards.

The deal was hailed by the carrier’s president cargo, Dave Brooks, as “great news” for cargo. “These aircraft are the long-range, intercontinental 787s, and since they are extremely fuel-efficient, we will be able to carry a lot of cargo on them,” he says.

Indeed, Brooks says the new aircraft will be even better cargo performers than the 777, which currently form the backbone of American’s fleet. It has 47 of the aircraft, and they are often regarded as mini-freighters because of their enormous belly capacity. But Brooks says the 787-9 will have four more LD-3 positions than the 777s, and the fuel efficiency to allow them to be filled.

Boeing says that with 20 per cent more fuel efficiency, the aircraft could provide up to 45 per cent more cargo revenue capacity than comparable aircraft today. The 787-9’s range of 8,500 miles also comfortably tops the 777’s 5,500-6,000nm maximum.

Where the 787-9s will be deployed has not yet been decided – 2012 is after all a long time in the future and the economic outlook uncertain – but replacement of the carrier’s 72 767s is likely to be a priority.

However, AMR chairman and chief executive officer, Gerard Arpey, also hopes that the 787-9s will be used to expand into new international markets, particularly if American, Iberia and British Airways succeed in their current application to the US DOT for antitrust immunity.

American will be getting the aircraft at a rate of six a year. The fact that it has got such early slots on the much-delayed 787 programme has raised eyebrows – even Air New Zealand, launch customer for the 787-9, is not getting its first aircraft until around the same time.

The maiden flight of the 787 is supposed to take place in the fourth quarter of this year, though the current machinists strike, which started in early September, must cast some doubt on that, as well as on the timing of the first delivery to All Nippon Airways, due for next August.

At the same time as American unveiled its new order, it announced a US$360m net loss for the third quarter, following a $284m fall in the second quarter ($1.4bn including exceptional items) and $328m in the first. Brooks says the results were “in line with expectations”, however, and the airline ended the quarter with $5.1bn in cash.

Cargo traffic, measured in ton miles, fell one per cent in the quarter to 509 million, while revenues rose 17.3 per cent to $230m. Altogether, cargo traffic is down 1.7 per cent for the year-to-date, while revenue is up 13.6 per cent.