Flea Bite

American Airlines CEO : Not Eager To Buy New Boeing Jet

Wednesday June 8, 3:32 PM EDT

DALLAS (AP)--American Airlines is unlikely to buy Boeing Co.'s (BA) next jetliner until the money-losing carrier returns to profitability and can get better credit terms, American's chief executive said Wednesday.

Gerard Arpey said American considers the Boeing 787 Dreamliner, due out in 2008, "a very intriguing airplane," but added that American likes to pass on the first model of new jets.

Arpey made the comments during an investors' conference. He also emphatically renewed American's vow to fight an effort by rival Southwest Airlines Co. (LUV) to make long-haul flights from Dallas Love Field, which would compete with American's flights at nearby Dallas-Fort Worth International Airport.

Arpey accused Dallas-based Southwest of trying to exploit its "monopoly" at Love Field, where flights are limited to Texas and seven nearby states by a 1979 law called the Wright Amendment.



"Southwest can start tomorrow from DFW and compete with American, and I suspect if the Wright Amendment isn't repealed, that's what they'll do," Arpey said.

Although American's parent, Fort Worth-based AMR Corp. (AMR), has lost more than $7 billion since the beginning of 2001, it has one of the strongest balance sheets in the U.S. airline industry, prompting an analyst to ask Arpey whether American would buy the Boeing 787 Dreamliner.

Last month, Northwest Airlines Corp. (NWAC) announced it would buy 18 787s - at a cost of $2.2 billion - for long flights and buy options for another 50.

Arpey said it didn't make sense that AMR should invest in new planes as it struggles to turn a profit.

"We've got to take the airplanes we have today and drive them to profitability," Arpey said. Once the company is profitable, he said, it could get better terms on loans for new aircraft.

Boeing did not immediately return two calls Wednesday.

Shares of AMR were up 3 cents, or 0.3%, to $14.03 in recent trading, near the high end of a 52-week range of $6.34 to $14.95. Boeing shares were down 99 cents, or 1.5%, or $64.29.

av8r4aa

Boeing 787 jet is not good for AA.
My calculations show that with 6 RJ 50 seaters could do the job of that dumb 787.
Just get more RJ's out there, cheap parts and labor!
WHAT A CONCEPT!
AA is waiting for the new Boeing 797 SUPER DUPER JUMBO PLANE.

It holds 1000 paying passengers. plus enough cargo space to move Barnum and Bailies complete road show!

One flight each day to LAX ORD and JFK

Everything else give to Eagle.

And when we are done "burn down the house"