American Airlines has placed an order for 260 new narrow-body jets, including dozens of Boeing’s long-delayed 737 Max 10.
The order includes 85 of Boeing’s 737 Max 10 planes, 85 of the Airbus A321neo, and 90 Embraer E175 planes.The aircraft will help the airline upgauge on domestic and short-haul international routes,American Airlies expects the Max 10 deliveries to start in 2028.
American’s CFO Devon May said it would also convert orders for 30 737 Max 8 planes, a model that is already a staple of its fleet, into the larger 737 Max 10s.
Devon May said the airline has additional Airbus options for new aircraft as well as financial protections with Boeing, and the ability to take already-certified models if the Max 10 certification is further delayed.
Boeing is struggling with a series of production flaws and certifications of new planes that have taken years longer than originally expected.
Boeing’s Troubles with FAA
Boeing is facing additional scrutiny from the Federal Aviation Administration (FAA) after a door plug on a 737 Max 9 blew out midair during an Alaska Airlines flight in January.
Boeing’s 737 MAX production process failed 33 of 89 tests.
A report from FAA shows that Boeing failed a check which dealt with the component that blew off the jet, known as a door plug.
Supplier Spirit AeroSystems, which makes the fuselage for the MAX, passed six of 13 audits and failed the rest, the report added.
Additionally, an audit at Spirit focusing on the door plug component found five problems and it failed the one which dealt with the installation of the component.
Other audits that Spirit failed included one that involved a cargo door and another that dealt with the installation of cockpit windows.
The plane maker’s Commercial Airplanes fourth quarter revenue increased to $10.5 billion driven by higher deliveries.
During the quarter, Commercial Airplanes booked 611 net orders, including 411 737s, 98 777X, and 83 787s airplanes. The company began certification flight testing on the 737-10, and resumed production on the 777X program.
Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.
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