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Fri, Nov 05, 2004

AAL Could Cancel Some Boeing Orders

World's Biggest Airline Struggles Against Tide Of Red Ink

Continuing its attempts to climb out of the financial cellar, the world's biggest airline says it wants Boeing to hold off. With depressed fares and too much capacity in the system, American has canceled orders for 18 RJs.

"Given the current state of the airlines, this is nothing surprising," said Boeing spokesman Nicolaas Groeneveld-Meijer. "As carriers work to improve their economic health, Boeing continues to work closely with each of its airline partners such as American Airlines." He was quoted by the Seattle Post-Intelligencer.

American, which lost $214 million in the third quarter of this year, has firm commitments to buy 47 737-800s and nine 777-200s between 2006 and 2010.

The move sent Boeing shares lower and was the reason Credit Suisse lowered the aerospace giant's credit rating Thursday.

FMI: www.boeing.com, www.aa.com

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