AA undertaking billion dollar cabin overhaul

American Airlines plans to go on a $2 billion shopping spree to upgrade plane seats and in-flight entertainment, to keep pace with rival Delta Air Lines.

One year following the merger with US Airways, assimilation is well advanced in many areas, from frequent flyer integration to network and operational cooperation.

Now it plans to invest in visible improvements for customers.

"American is playing catch-up to other airlines, the result of past business decisions to not invest in its passenger experience," said Henry Harteveldt, of consultants Atmosphere Research Group.

Work has started on is international fleet of 777-200s and 767-300s, with in-seat entertainment upgrades and lie-flat business class seats.

Lie-flat business seats also will be installed on single-aisle Boeing 757 jets.

In contrast, Delta has seat-back entertainment systems on planes on its international network and all two-class aircraft which includes regional planes, have Wi-Fi access.

American will have taken delivery of about 100 new jets by the end of this year since the merger.

"The act of replacing those aircraft with a brand-new airplane is an enormous customer enhancement; they are nicer, they’re brighter and they’re more comfortable. It’s a much better flying experience," said CEO Doug Parker.