NEW YORK—Boeing has landed approval to put a new engine in its 737 to match a competing plane by Airbus, after receiving order commitments for 496 jetliners from five airlines.

American Airlines said it would buy 100 of the new-engine 737’s in July if the plane-maker received board-approval to build them.

American Airlines said it intends to order more than 460 new jets, including 200 from Boeing and 260 from Airbus, ending Boeing’s exclusive grip on American’s fleet of jetliners.

Deliveries of the new 737 are expected to start in 2017.

Chicago-based Boeing says the re-engined 737, to be assembled in Renton, Wash., will save about $85 million in costs per plane and burn four per cent less fuel than Airbus’ single-aisle A320neo.

The new 737 jets will be powered by CFM International LEAP-1B engines.

The Boeing 737 is the worlds most popular commercial jet transport, having won orders for more than 9,000 planes.