On the Call: AMR CFO Thomas Horton

AMR Corp., the parent of American Airlines, reported Wednesday that it lost $286 million in the second quarter, but that was overshadowed by the announcement that it made the biggest airline order ever for new planes.

AMR said it will get 460 planes from Airbus and Boeing Co. and take options for 465 more over the next several years.

Chief Financial Officer Thomas Horton suggested American bargained hard, even over small details such as whether American or the aircraft makers would pay to train the airline's pilots to fly the new Airbus planes — American doesn't have any Airbus jets in its fleet.

QUESTON: "With respect to training costs for the (Airbus A320) ... do you have to pay for that or will the manufacturers pick up those costs?"

RESPONSE: "There are incremental training costs associated with introducing a new fleet type ... but it is baked into the economics we shared with you all this morning which are overwhelmingly positive for replacing present airplanes with these new-generation airplanes. It is a big win for us, and we obviously drove this hard bargain as we could with the manufacturers, so you can bet that we took that into account."

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • What can void a new car warranty? James Deakin - Wheel Power
    What can void a new car warranty?

    "I was denied warranty once for changing my horn!" One very annoyed reader wrote. "I was told that placing a backup camera will void my warranty" said another. The others are best left in my private inbox as Yahoo! have a swear jar in the office that I do not feel like donating this week's pay to. Continue reading → …

  • Docu exposes destruction of PH marine resources VERA Files - The Inbox
    Docu exposes destruction of PH marine resources

    By Kiersnerr Gerwin Tacadena, VERA Files "Gutom (hunger)," Sen. Loren Legarda said is what’s in store for the Filipino people if destruction of the country's marine resources is not stopped. Legarda, chair of the Senate committee on Environment and Natural … Continue reading → …

  • ‘Yolanda’ fiberglass boats modern-day Noah’s ark VERA Files - The Inbox
    ‘Yolanda’ fiberglass boats modern-day Noah’s ark

    By Jane Dasal, VERA Files If you want to save the earth, build a boat. That's what a group of environmentalists is saying, especially if you want to save both the forests and fishermen affected by supertyphoon “Yolanda” (Haiyan). “Haiyan … Continue reading → …

Poll Choice Options