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Monday, October 17, 2011

American's Jet Deal and American Eagle Spinoff

On July 20, 2011, American split its $40 billion order between Boeing and Airbus. This is the first time Airbus has captured the share of American's order and broke the monopoly of Boeing. American would get 460 narrow-body , single-aisle airplanes--260 from Airbus and 200 from Boeing Co.--between 2013 and 2022. American would get from Airbus a new version of A320, A320neo, and from Boeing a new version of 737. Boeing Board of Directors subsequently named the variant MAX.

Also on July 20, AMR Corp. announced divestiture of American Eagle into a separate entity.