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Boeing flies high on deals
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November 20, 1996: 8:12 a.m. ET
American Airlines expected to purchase 100 new jets
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NEW YORK (CNNfn) - Boeing Co. is expected to win a $6 billion contract from AMR Corp.'s American Airlines to provide more than 100 new passenger jets as the airline expands international operations, published reports said Wednesday.
The New York Times and The Wall Street Journal reported that AMR's board of directors plans to meet Wednesday to vote on the proposed orders for at least one dozen 777s, about 75 737s and a handful of 767 and 757 planes. The airline has scheduled a news conference for Thursday morning, possibly to announce the agreement.
News of the contract sent shares of the aerospace giant up $1 in premarket trading Wednesday morning after closing up 3/4 at 94 on Tuesday.
For Boeing, the good news just keeps on coming.
Air France agreed Wednesday to purchase 10 Boeing 777s with an option for 10 more, following some protests by European consortium Airbus. That development was topped by this weekend's announcement that Boeing and Lockheed Martin Corp. were selected as finalists by the U.S. military to design and produce 3,000 "Joint Strike Fighters" valued at up to $219 billion.
If AMR approves the purchase, Boeing will have secured a long-term contract to refurbish American's fleet over the next decade.
American is ready to buy such a large number of new jets largely because of its plans to expand overseas. The carrier hopes to merge operations with British Airways in Europe and plans to broaden its lead as the dominant U.S. airline in Latin America.
Also on the agenda is the opening of some routes to Asia. The airline currently operates a limited number of flights to Japan. A treaty with Japan prevents adding to those routes, but the airline could bypass Japan and open routes to the rest of Asia with the long-range 777 in its fleet.
Sources told the newspapers that American wants to use the jet purchase as a carrot to dangle in front of its 9,100 pilots. The Airline Pilots Association is expected to vote Wednesday on a new labor contract that includes a pay increase, stock options and job security provisions. If the union board approves the contract, pilots will vote on it next month.
The jet purchase is seen as a signal to pilots that they will have future opportunities for job growth within the airline. 
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