American Air In Talks With Boeing About Delivery Pact Wednesday November 3, 3:23 PM EST NEW YORK (Dow Jones)--AMR Corp. (AMR) Chief Executive Gerard Arpey said he's in talks with Boeing Co. (BA) about the airline's current contracts for airplane deliveries with the manufacturer. Arpey said in a speech to analysts Wednesday that another airplane maker, Embraer (ERJ), agreed to cancel AMR's remaining order for 18 airplanes. He said he's in similar talks with Boeing. "We're in talks right now with Boeing about business we have with Boeing," Arpey said. He didn't elaborate. The world's largest airline has outstanding orders with Boeing for nine 777 airplanes and 47 737s, according to Boeing's Web site. Arpey further said he'd like to shift the paradigm for the airline's relationship with vendors. He pointed out that many vendors have done very well financially of late, even though airlines have mostly turned losses. "I don't have a roadmap for doing that, other than contract by contract, relationship by relationship," he said, adding airlines need more flexibility in contracts in case the carriers reach difficult times. Arpey further said he's "excited" about Boeing's new 7E7 airplane, but now isn't the time for AMR to take a risk on an airplane that isn't yet in production. The 7E7 is scheduled to begin production in 2007, with the first delivery coming in 2008. Arpey said he'd like to also change the way airplane development is done, shifting the financial burden on the manufacturers rather than on the airlines. "We can't foot the bill for the development of a new airplane. You've got to foot the bill for that, and we'll let you know in a few years if we want to buy it," he said. -By Elizabeth Souder Roger EWROPS