American Air orders 42 Boeing 787 Dreamliners

By Bill Rigby

NEW YORK (Reuters) - AMR Corp's (AMR.N: Quote, Profile, Research) American Airlines ordered 42 Boeing Co (BA.N: Quote, Profile, Research) 787 Dreamliners on Wednesday, worth more than $8 billion at list prices, providing a badly needed boost for the plane maker as it struggles with an uncertain economy and a five-week strike by assembly workers.

The order is the first American Airlines has made for widebody aircraft since 2001, acknowledging that its fleet needs to be overhauled, and signaling some confidence in the future of international air travel.

Boeing's carbon-composite and titanium 787 is designed to carry about 200 to 300 passengers on long-range flights using 20 percent less fuel than its predecessors.

American is buying the 787-9, the larger version of the plane, which it said would help in its international expansion under its planned co-operation agreement with British Airways (BAY.L: Quote, Profile, Research) and Spanish carrier Iberia (IBLA.MC: Quote, Profile, Research).

American's order is a timely boost for Boeing. Orders for its commercial aircraft have slowed sharply as airlines worry about an economic downturn and its assembly workers have been on strike for more than a month, with no end in sight.

The 787 is already facing long delays due to production problems. Airlines -- which have now ordered more than 900 787s -- will have to wait up to two years or possibly longer than they first expected to receive their planes after the program was set back by underperforming suppliers and parts shortages.

American, the world's biggest airline by traffic, said it would take delivery of its 42 787-9s between 2012 and 2018. It also took out purchase rights on a further 58 787s that would be delivered between 2015 and 2020.

American is only the third major U.S. carrier to order 787s, after rivals Northwest Airlines NWA.N and Continental Airlines (CAL.N: Quote, Profile, Research). Leasing companies, Middle Eastern and Asian airlines have been the main customers so far for the new plane.