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Reuters: American Airlines, CFM close to $2.6B deal

  • Reuters reports American Airlines (AAL) is close to completing a $2.6B engine order from CFM International, a joint venture between GE (GE) and Safran (SAFRF). The 200 new engines will be placed on new Airbus A320neo jetliners that the company has on a firm order.
  • The purchase will mark a loss for United Technologies' (UTX) Pratt and Whitney unit, the only other engine maker for the A320neo.
  • AAL +0.1% AH
Comments (7)
  • diaute
    , contributor
    Comments (13) | Send Message
     
    hearing numerous positive news items coming out on GE. Water unit yesterday this today. anyone hear anything about any turbine contracts. like to see the GE Alstom
    purchase start winning some deals.
    2 Jul 2014, 06:30 AM Reply Like
  • Felix Lumpe
    , contributor
    Comments (488) | Send Message
     
    This adds to an already huge engine order backlog and is further testimony to the fact that GE Aviation is hitting on all cylinders. Every major sale like this secures a very profitable income stream for years to come based on the associated service contract. It should be noted that the GE -Saffron partnership (CFM) has been one of the most successful in aviation history. Believe that CFM alone has a bigger market share than either of GE's engine competitors, Rolls-Royce or Pratt & Whitney.
    2 Jul 2014, 07:01 AM Reply Like
  • Mike the Elder
    , contributor
    Comments (9) | Send Message
     
    I wish American Airlines was buying American airplanes from Boeing and financed them via American Banks? I remember big orders in the past where this airline bought Airbus planes and financed them via French banks. What gives here?
    2 Jul 2014, 01:06 PM Reply Like
  • SDMSF
    , contributor
    Comments (113) | Send Message
     
    feel the pain but too much to ask to have all the pieces fit that nicely. GE is selling and inking deals and we own GE.
    2 Jul 2014, 04:05 PM Reply Like
  • joegillam
    , contributor
    Comments (463) | Send Message
     
    Right, Mike, they have a lot of nerve calling themselves "American". I'm not often on an airliner, but never on American Airlines.

     

    Joe In Georgia
    2 Jul 2014, 07:44 PM Reply Like
  • RWMostow
    , contributor
    Comments (1513) | Send Message
     
    Joe-

     

    Please don't forget that culturally American is really the old US Air.

     

    -rwm
    2 Jul 2014, 11:41 PM Reply Like
  • joegillam
    , contributor
    Comments (463) | Send Message
     
    Yep, RW, worst flight I ever had was US Ai,r Charlotte to Venice, Italy. Another couple and I booked six months out and when we boarded we had four seats in different areas of the aircraft. It was a full flight and after some delayed haggling we finally got seated with our wives but not close together. Service was -0 and the crew was just plane rude. My letter to the airline was not answered.
    3 Jul 2014, 07:11 AM Reply Like
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