American has financing commitments for 198 aircraft

Washington DC
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American Airlines has financing commitments for 198 future aircraft deliveries, as the carrier continues to renew its fleet with at least 70 new aircraft due this year.

The commitments cover 110 Airbus A319s and A321s, 76 of 82 Boeing 737-800s, four Boeing 777-300ERs and up to eight of 26 Boeing 787s all with deliveries through 2016, according to a stock exchange filing on 15 April.

Fort Worth-based American must still close financing for the aircraft, which typically occurs within 12 to 18 months of delivery. The commitments likely include loans from banks or the manufacturers, enhanced equipment trust certificate (EETC) debt, as well as sale and leaseback transactions with lessors.

The carrier can opt for other financing options when it moves to close the deals for the aircraft.

The A319 and A321 financing commitments could come from Airbus. The airframer agreed to provide financing for the "purchase of certain aircraft", under an amended aircraft purchase agreement that was reached in January.

Airbus says that it does not discuss the financial details of its dealings with customers.

Boeing could be providing the financing for the 787s. The OEM provided "certain financing commitments" for the aircraft under a restructured purchase agreement that American and Boeing reached in January, according to court documents.

American and Boeing did not comment by press time.

The airline says that it has arranged $750 million in financing for up to eight 787s but that it may "seek to arrange alternative or additional financing", in the stock exchange filing.

American closed a $663 million EETC for 13 aircraft in March. The deal is secured by eight 737-800s, one Boeing 777-200ER and four 777-300ERs. The financing commitments include these aircraft.