AMERICAN AIRLINES shared its order among the Giants.

Boeing aircraft co's monopoly with american airlines(AA) was on pinnacle as the latter approached the former rival Airbus aircraft co for their fleet, but it seems the airlines convinced both of them by sharing its orders among them,nevertheless Boeing's monopoly is quietly shaken!


No single manufacturer could provide the number and variety of aircraft we need to fulfill our vision for the future," American Airlines Chairman and CEO Gerard Arpey was quoted in a report by the Seattle Post-Intelligencer

American President Tom Horton also downplayed the rivalry. "Some characterized this as a split deal,” he said. “I would characterize it as a 'both' deal. We decided that each deal was so compelling, and the replacement economics and flexibility for both was so compelling that we wanted to do both."

The airline confirmed in a press release that it had split its biggest airline order (in fact, the largest aircraft order in history) between the rival companies.

Boeing's deal: AA is buying 200 aircraft from the 737 family, with options for another 100 737 family aircraft.

Its Airbus order: AA will acquire 260 Airbus aircraft from the A320 family with 365 options and purchase rights for additional aircraft.

While it was good news to get some orders, Boeing also got to deal with a good bit of stress with the word from Reuters that another big client, Southwest Airlines, was having “‘warm’ top-level talks” with Airbus, which led plenty to surmise that Boeing could be losing some business soon.

USA Today surmised that Southwest “may be feeling that Boeing did not consult with it enough before its seemingly abrupt decision to re-engine its 737 in order to win a share of American’s big order.”

However, Southwest CEO Gary Kelly told FOX Business those rumors are bogus,according to USA Today.

“There is no truth to that at all,” Kelly stated. “They’re a great company and great friend of Southwest and we certainly correspond and interact with those folks. But we’re talking exclusively with Boeing, and that’s only fair because that’s what we want to make work and waiting to hear from the Boeing Company about what opportunities we have with this newly re-engined 737.”

Boeing also reported that two earlier orders for 737s from a Turkish airline were canceled.

AA will be the first U.S. airline to offer in-flight streaming video.

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