International Aero Engines has entered into an agreement that will enable IAE to play a key role in American Airlines' fleet transformation.

As a part of this pact, IAE said it will provide American's future fleet of new Airbus A321 aircraft with its V2533-A5 engines. The financial terms and conditions of the transaction have not been disclosed.

This engine selection supports American's July 2011 fleet order for 130 current-generation A320 family aircraft. American expects to take delivery of the A321 aircraft that are part of that order between 2013 and 2017.

"American Airlines is pleased to select the IAE V2533-A5 engine to power our new A321 aircraft," said Bob Reding, executive VP of operations for American Airlines. "This engine has some of the best fuel, noise, emission and operating efficiency in its class and will therefore allow us to achieve significant cost savings. IAE is a terrific company and we look forward to establishing a close partnership with them as we introduce the Airbus A321 into our fleet."

Under agreements announced in July 2011, American plans to acquire 460 firm narrowbody aircraft orders from Boeing and Airbus beginning in 2013 through 2022. These new deliveries are expected to pave the way for American to have the youngest and most fuel-efficient fleet among its U.S. airline peers by 2017.

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