WASHINGTON -(Dow Jones)- AMR Corp., the parent of American Airlines, said in a federal filing that it intends to expand its fleet of Boeing Co. aircraft through 2004.
American Airlines, the nation's No. 2 air carrier, plans to spend about $850 million through the remainder of 2000 to acquire 69 Boeing 737-800s, 20 Boeing 757-200s and 15 Boeing 777-200IGWs, the company reported in a filing with the Securities and Exchange Commission.
American Airlines said it will spend $1.6 billion in 2001, $500 million in 2002 and approximately $300 million in both 2003 and 2004 to complete the transaction. Deliveries from Seattle-based Boeing Co. (BA) will extend through 2004.
American Airlines will fund its remaining 2000 capital expenditures from its existing cash and short-term investments, internally generated cash, and new financing.
In May, American Airlines ordered an additional 20 Boeing 757 narrow-body jets valued, at list prices, at about $1.4 billion. The planes were ordered under an agreement guaranteeing American the lowest price for jets in return for ordering large airplanes from Boeing exclusively. Airlines typically receive deep discounts off Boeing's list prices. Terms of the transaction weren't released. Boeing, in a pitched battle with European consortium Airbus Industrie, has offered more creative financing to customers recently.
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