SEATTLE, Nov. 21, 1996 -- Boeing Commercial Airplane Group today confirmed an order by American Airlines for 103 Boeing jetliners and confirmed that the airline had arranged innovative "purchase rights" for 527 more Boeing jets over the next 20 years.

American placed 75 orders for the Next-Generation 737 family of jetliners and 12 orders for the 777-200, adding the latest members of the Boeing family of jetliners to its fleet for the first time. In addition, the airline ordered 12 of the popular 757 airplanes and four 767-300ERs. The agreement is contingent on ratification of the tentative agreement between American and the Allied Pilots Association.

Based on the manufacturer's list price, this order is valued at about $6.6 billion.

With this transaction, American Airlines also has identified Boeing as its preferred airplane supplier and has obtained "purchase rights" for an additional 527 airplanes: 425 Next-Generation 737s, 38 777s, 38 757s and 26 767-300 ERs. Purchase rights simply mean that airplanes are "slotted" into the production line with more flexibility than ever before. This customer-driven approach is, in part, a result of Boeing's ongoing cycle-time reduction efforts.

American Chairman and Chief Executive Officer Robert L. Crandall said, "This agreement will cement a 40-year working relationship between American Airlines and Boeing and we look forward to continuing to work together for the next generation."

The 737s on order will be delivered between 1998 and 2001. They will be powered by CFM56-7 engines.

Since Boeing announced the launch of the latest members of the Boeing 737 family -- the 737-600/-700/-800 models -- they have outsold all others in their market segment. Today's order brings the Next-Generation 737 total to 501. Changes from current production 737s include a new larger wing, higher cruise speed, more range and new engines with improvements in noise, fuel burn and thrust.

The 777s on order also will be delivered between 1998 and 2001, but the engine decision has not yet been made. American Airlines participated in defining and developing the new airplane's configuration, ensuring that the final product has the broadest possible application to the airline's needs.

The 757s and 767 jets in American's fleet will be joined by the new 757s in 1998 and 1999, and the 767s in 1998, bringing their totals to 102 and 75, respectively. This combination of twinjets in American's fleet offers flexibility in crew scheduling and, to a great degree, in spares and maintenance.

The Boeing 757-200 is a twin-engine, medium-to-long-range jetliner incorporating advanced technology for exceptional fuel efficiency, low noise levels, increased passenger comfort and top operating performance.

The twin-aisle Boeing 767-300ER provides airlines with a profitable, comfortable airliner sized between the standard-body Boeing 757 and the larger Boeing 777.

"Today's announcement confirms that working closely with customers and offering a complete product line provides superior value to the marketplace," said Boeing Commercial Airplane Group President Ron Woodard.

"We're extremely pleased that American Airlines has chosen the Boeing family of airplanes to meet all of its requirements for the next 20 years. This decision is particularly meaningful for us," Woodard added, "because American has had the opportunity to operate our competitors' airplanes, and ultimately the airline chose Boeing airplanes for the value they provide."