AMR Bets Big With Boeing Order

At a time when many investors and lenders are doing everything they can to avoid risk, American Airlines parent AMR(AMR Quote) stepped up last week and made a bold bet on the future.

The world's largest airline announced what could become the biggest aircraft order in its history, saying it wants 42 Boeing (BA Quote) 787-900s, with options for 58 more. The list price for 100 airplanes is close to $20 billion, although carriers never pay the full price and they don't disclose the exact cost.

For American, the order compares with one it placed in three tranches between 1982 and 1987 for 260 MD-80s. Those jets were key to American's dominance in the 1990s. Taking all 100 Boeing planes would enable American to operate the second-largest 787 fleet in the world -- assuming Australia's Qantas acquires all 115 airplanes in its own order -- and to maintain a dominant international role. ...