AA defers delivery of A320neo family aircraft

[FWAAA]

From an 8-K filed today:

Item 1.01 Entry into a Material Definitive Agreement

On July 20, 2011, American Airlines, Inc. (American), a wholly-owned subsidiary of American Airlines Group Inc. (AAG), entered into the A320 Family Aircraft Purchase Agreement (the Purchase Agreement) with Airbus S.A.S. (Airbus). On June 11, 2015, American and Airbus entered into Amendment No. 8 to the Purchase Agreement (the Amendment).

As of March 31, 2015, as described in AAGs Form-10Q filing for the period ended on that date, American had commitments to purchase 10 Airbus A320neo family aircraft in 2017 and 25 Airbus A320neo family aircraft in 2018. Pursuant to the Amendment, American and Airbus have agreed to defer delivery of the 35 aircraft to years 2021 through 2023. Taking the Amendment into account, as of the date of this Form 8-K, American has zero A320neo family aircraft purchase commitments for 2017 and 2018, 25 A320neo family aircraft purchase commitments for 2019 and a total of 75 A320neo family aircraft purchase commitments in 2020 and thereafter.

http://services.corporate-ir.net/SEC/Document.Service?id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDNXdhSEEvWVdOMGFXOXVQVkJFUmlacGNHRm5aVDB4TURNek5EVTVOeVp6ZFdKemFXUTlOVGM9JnR5cGU9MiZmbj1BbWVyaWNhbkFpcmxpbmVzR3JvdXBJbmNfOEtfMjAxNTA2MTUucGRm

http://aviationblog.dallasnews.com/2015/06/american-airlines-to-defer-delivery-of-airbus-a320neo-aircraft.html/

 

[WorldTraveler]

confirms what I have said that AA had too many aircraft on order and needed to reduce its financial commitments.

It also appears that AA's retirements are remaining the same so the planned growth will not be as great as expected.

 

[1AA]

confirms what I have said that AA had too many aircraft on order and needed to reduce its financial commitments.It also appears that AA's retirements are remaining the same so the planned growth will not be as great as expected.

Should be interesting to see how this will play into our negotiations.

 

[Overspeed]

If AA moves aircraft over to the LUS maintenance program I understand that it reduces aircraft downtime for scheduled checks. If That's true you could utilize the fewer aircraft flying more flight hours while maintaining the same schedule. Could it be that the new AA is utilizing their aircraft better than DL? 20 year old 757 sits in LC/HC more than a new 321. And extra 21 days flying on a 321 gets you a lot of ASMs than one 757 stuck in heavy.

 

[WorldTraveler]

AA has WAY more aircraft than DL and produces a disproportionately small amount of additional ASMs.

so, no, DL uses its aircraft more efficiently.

and it is not unexpected that AA's efficiency WILL increase as the res system, network, and the res are all integrated - and as aircraft are shifted from Latin America to other parts of the world where aircraft utilization per unit is higher.

I too would like to know the implications for AA maintenance = and other groups.

but given that AA signed contracts with the APFA and APA and then quickly started to pull down mainline capacity - whether it planned to do it CBAs or not - the impact on the amount of hours to be worked is clear.

 

[jcw]

Remember no matter what AA does DL does it better


Let's combine the AA and DL boards no need discussing AA they will amount to nothing

 

[WorldTraveler]

I noted years ago that AA had too many aircraft on order as a result of the merger.

This is simply confirmation that the execs finally came to that conclusion given that retirements won't change but aircraft orders will slow down.

 

[jcw]

You really get Doug in speed dial to tell him what his next move should be

 

[WorldTraveler]

He clearly figured it out. He might even read this board.

 

[jcw]

I'm sure he is reading it for a good laugh on someone's view of the world - he probably can't stop laughing

 

[WorldTraveler]

I don't really care whether he laughs or cries.

but he is doing what I said he would end up having to do.

Hub closures are next on his to do list, btw.

 

[jcw]

Excellent let's hope he closes all the hubs and shut down the airline since it's so uncompetitive in everything it does

 

[FrugalFlyerv2.0]

confirms what I have said that AA had too many aircraft on order and needed to reduce its financial commitments.
 

 
I could have swore you preached about AA having too many widebody aircraft on order.
You aren't changing your narrative are you, World Poser?

 

[Jester]

confirms what I have said that AA had too many aircraft on order and needed to reduce its financial commitments.

It also appears that AA's retirements are remaining the same so the planned growth will not be as great as expected.

 
I think you are over looking a few critical issues... 1) Those orders were made when fuel was nearly twice as much, 2) Neither the MD80s or B757s need to be prematurely retired before their next scheduled heavy checks, and 3) Airbus has been hinting at near future A321s having closer B757 capabilities. 
 
With the biggest reason to dump most of the older planes have been fuel cost there is less need to retire, and why commit and buy less capable aircraft today when better models are to be available in the not to distant future, especially for the very desirable characteristics of the B757 which are not being addressed with the current line-up of new builds?

 

[chilokie1]

 I think you are over looking a few critical issues... 1) Those orders were made when fuel was nearly twice as much, 2) Neither the MD80s or B757s need to be prematurely retired before their next scheduled heavy checks, and 3) Airbus has been hinting at near future A321s having closer B757 capabilities. 
 
With the biggest reason to dump most of the older planes have been fuel cost there is less need to retire, and why commit and buy less capable aircraft today when better models are to be available in the not to distant future, especially for the very desirable characteristics of the B757 which are not being addressed with the current line-up of new builds?

If AA delays retirement on some of its fleet I believe they will need to comply with a service bulletin to 
install nitrogen supplies to the fuel tanks. This stems from the TWA 747 accident off Long Island, can 
anyone verify if this is true?
anybody