American Airlines' new aircraft expenditure will increase substantially in years 2012 and 2013 as part of the airline's goal to replace and transform its narrowbody fleet.
According to a regulatory filing with Securities and Exchange Commission, American's total aircraft purchase commitments are expected to be approximately $10.3 billion at the end of the third quarter.
Future minimum lease payments required under capital and operating leases that have initial or remaining "non-cancellable" lease terms are approximately $24.3 billion.
American's payments for all firm aircraft purchase commitments outstanding, as well as other outstanding aircraft commitments, will total $532 million for the remainder of 2011 and then skyrocket to $1.3 billion in 2012 and $1.4 billion in 2013. New aircraft spend will ease again in 2014 at $267 million and then dip to $198 million in 2015, and fall to $154 million in 2016.
All payments are net of purchase deposits held by the manufacturers.
Airbus and Boeing have committed $13 billion in financing to American through lease transactions, which cover the first 100 Boeing and first 130 Airbus narrowbody deliveries
American says it has arranged financing commitments covering all of aircraft scheduled to be delivered between 2011 and 2016, except 15 widebodies that it intends to finance at a later time, according to the filing.
Last week, American inked a deal to acquire 460 narrowbody aircraft from the Boeing 737 and Airbus A320 families, becoming the first network US airline to take delivery of re-engined narrowbody aircraft. Deliveries start in 2013 and run through 2022.
American also has purchase rights and options through 2025 for an additional 465 aircraft.
The airline has agreed to acquire 100 additional Boeing 737 Next Generation aircraft, which may consist of Boeing 737-700, 737-800, or 737-900 ER aircraft. The firm aircraft include three Boeing 737-800 aircraft for which American exercised purchase rights on 30 June. Twenty of the firm aircraft are scheduled to be delivered in each of the years 2013-2017.
Under the agreement, American also expects to acquire 100 Boeing 737 Next Generation "re-engined" aircraft to be delivered in each of the years 2018-2022. In addition, American acquired purchase rights for 40 additional Boeing 737 Next Generation aircraft, which, if exercised, would be delivered in the years 2015-2018, and purchase rights for 60 additional Boeing 737 Next Generation "re-engined" aircraft, which, if exercised, would be delivered in the years 2020-2025.
Boeing agreed to provide primary lease financing to American for the firm Next Generation aircraft. If American elects to use this lease financing, then BCC Equipment Leasing Corporation (a subsidiary of Boeing) or a third party arranged by Boeing will enter into a lease deal for an initial term of ten years.
Under the Airbus agreement, American committed to lease 130 Airbus current generation A320 family aircraft which may consist of A319, A320 or A321 aircraft, and committed to purchase 130 Airbus A320 family neo aircraft. Between 20-35 of the firm current generation Airbus aircraft are scheduled to be delivered in each of the years 2013-2017.
Ten firm neo aircraft are scheduled to be delivered in 2017 and thereafter between 20-25 firm neo aircraft are scheduled to be delivered in each of the years 2018-2022.
In addition, American acquired 70 options and 15 purchase rights for additional Airbus current generation A320 family aircraft, which would deliver in years 2014-2017. It also holds options for 280 additional Airbus A320 family neo aircraft, which deliver in the years 2017-2025.
Like Boeing, the Airbus aircraft will be financed under leases with initial terms of ten years with Airbus or one of its affiliates, or with a third party arranged by the manufacturer.