AA CUTTING FLIGHTS
- Thread starter swdriver
- Start date
kirkpatrick
Veteran
We'd sure save a lot of fuel. We'd also save the money it takes to process all those passengers and collect all that revenue.
Seriously, with revenue above costs even with the high price of fuel, why would a massive cutback in capacity help anything? And why did a proffer for international go out for JFK and MIA for Jan 1?
MK
Seriously, with revenue above costs even with the high price of fuel, why would a massive cutback in capacity help anything? And why did a proffer for international go out for JFK and MIA for Jan 1?
MK
donttouchthebeauty
Veteran
- Joined
- Jan 11, 2006
- Messages
- 545
- Reaction score
- 0
I could definitely see them cutting domestic capacity and ground some 80s - but not international - thats the money maker...
TWU informer
Veteran
- Joined
- Nov 4, 2003
- Messages
- 7,550
- Reaction score
- 3,731
Can you say bargaining chip?
Doesn't AA have over 40 % of fuel hedged ???? Will this be enough to ride out the storm???
operaations
Veteran
- Joined
- Jul 31, 2003
- Messages
- 562
- Reaction score
- 0
I wish we could ground some of those S80's that has to be the passenger plane out there. And I am not familiar with its fuel consumption but I think it is a goas hog.
Any Ideas how AA could upgrade the fleet. Are there any buiyers out there for a huge fleet of s80's
Any Ideas how AA could upgrade the fleet. Are there any buiyers out there for a huge fleet of s80's
kirkpatrick
Veteran
When will the storm be over? Jan 15 - Mar 1 is traditionally a slack period anyway, so I assume the schedule reflects that fact. Ticket prices are rising and passengers are paying. Load factors, while down from the 90% of last summer, remain healthy.
I can see some selective cancelling when certain flights have low load factors, but can't see any reason for a huge capacity dump industrywide. It is contract time, however, so I expect the various managements to do their best to keep us scared.
MK
Fitch's rating service just upped some AA ratings noting that 40% of fuel is hedged for this quarter.
kirkpatrick
Veteran
No. I wouldn't be surprised to see 737 deliveries accelerated and 787's ordered, but replacement will be a slow process.
MK
You can be sure there will be a lot more rumors about cancellations and reductions due to costs from all sorts of unknown sources. It happens every time there are contract negotiations.
operaations
Veteran
- Joined
- Jul 31, 2003
- Messages
- 562
- Reaction score
- 0
Well I am scared. I am not scared of Management....I am scared of certain work groups wanting an all or nothing mentality. Some of what I hear can not be possible for the company to survive. I would like to see each and every work group get at least what they gave up back. I think that is only fair. As far as getting more back I would love it but I doubt it. I doubt we will even get close to getting what we lost back.
CynicalResAgent
Veteran
Allegiant has been expanding their fleet lately and they use MD-80's but I doubt they'd be expanding too much to take any amount of significance. Also Midwest has added a few MD-80's or 90's to their fleet but that was just a few planes in 2007. I don't know of any other US carriers that US MD-80's
It seems like even in developing countries that most airlines opt for the efficiencies of new planes. Maybe there might be a market for them but probably not much demand.
I would not be suprised to see a wave of M&A activity when oil goes above 100.00 bbl.
It's a wild wild guess and just a guess, because who are we kidding, were all just enthusiast on here, if we were anything more we'd be investors and it'd be illegal for us to speculate, but my guess is that B6 or FL gets absorbed by a legacy carrier to take out capacity.
It seems like even in developing countries that most airlines opt for the efficiencies of new planes. Maybe there might be a market for them but probably not much demand.
I would not be suprised to see a wave of M&A activity when oil goes above 100.00 bbl.
It's a wild wild guess and just a guess, because who are we kidding, were all just enthusiast on here, if we were anything more we'd be investors and it'd be illegal for us to speculate, but my guess is that B6 or FL gets absorbed by a legacy carrier to take out capacity.
eolesen
Veteran
- Joined
- Jul 23, 2003
- Messages
- 15,959
- Reaction score
- 9,375
Cutting 25% of the fleet sounds a bit drastic, but perhaps the rumor is just an echo of what was said by UAL's CFO last week -- they could ground approx 100 aircraft because of the timing on lease expirations in addition to unencumbered aircraft. The CFO had to backpeddle the next day and explain that it was a worst case scenario and that UAL wasn't seriously considering such an option... but they could if they had to.
Developing countries do typically buy newer aircraft, but right now they're faced with buying Airbuses in Euro, which is a higher valued currency than the dollar.
If AA were to put a bunch of aircraft on the used market and priced in dollars, they might go relatively quickly. Unlike some other carriers, AA's known to keep their aircraft in relatively good shape mechanically.
Developing countries do typically buy newer aircraft, but right now they're faced with buying Airbuses in Euro, which is a higher valued currency than the dollar.
If AA were to put a bunch of aircraft on the used market and priced in dollars, they might go relatively quickly. Unlike some other carriers, AA's known to keep their aircraft in relatively good shape mechanically.
Oh ... so just hedged for this quarter.... wonder if there are any more fuel hedges..
eolesen
Veteran
- Joined
- Jul 23, 2003
- Messages
- 15,959
- Reaction score
- 9,375
They've disclosed that they're hedged at 40% for this quarter, but I'd be shocked if AMR didn't have futures contracts of some form out thru 2010. They're one of the few carriers with the cash and the credit to take out options that far. Likewise for WN and CO, who have already partially disclosed what their positions are (70% and 10% respective for 2008).
