Labor Strife Threatens Jet Order American Airlines Pushes Back Delivery Of Boeing Airplanes

American Airlines President Donald Carty says a $6.6 billion order of Boeing jets to refurbish the airline’s fleet may now be in jeopardy because of continuing labor strife.

“I can’t tell you how many of those first deliveries are impacted,” Carty said Thursday of the initial order for 103 jets. The airline also has an option to buy hundreds of more jets from Boeing over a 20-year period.

American is waiting to resolve a dispute with pilots before proceeding with the purchases.

The airline and the Allied Pilots Association have been at odds on a contract for 2-1/2 years and the discord resulted in a strike at midnight on Feb. 14. The walkout lasted only minutes before President Clinton stepped in and appointed an emergency board, which is scheduled to give its opinion by March 17.

If both sides accept the board’s settlement, the pilot union’s 9,300 membership still will have to vote on the agreement. If either side rejects the board’s settlement, they enter another 30-day cooling off period.

All of the delays have pushed back the order schedule for the Boeing jets, which was originally placed in November.

“At least the front end is in jeopardy,” Carty said of the company’s firm order which included 12 Boeing 777 wide body jets, 75 Boeing 737s, four Boeing 767 and 12 Boeing 757 jets. The aircraft originally were scheduled for delivery between 1998 and 2002.

American’s deal with Boeing also gives the airline the right to buy an additional 527 jets by 2018. American would be allowed to buy those aircraft as needed, rather than according to the rigid delivery schedules that characterize typical airplane orders.

Carty said the Boeing deal, which hinged on a signed pilot contract, will be re-examined next week to see where things stand.

“With each month we slide back, the more airplanes become exposed to risk,” said spokesman Chris Chiames.

Boeing spokeswoman Liz Verdier did not immediately comment. However, last week, as the strike deadline approached, she said Boeing “would do our best to restructure the deal to keep it.”