I have it on good information AA is parking 27 more S80s, Apr 3 = 14; Apr 17 = 1; May 1 = 1; May 8 = 1; Jun 15 = 7; Jul 1 = 3. AA appears to be shrinking quite a bit.
:unsure: Everything shrinks before it dries up !! :unsure:
The company has decided to park an additional 27 S-80s with no plans to return them to service in the future. These aircraft are in addition to the 27 aircraft the company announced would be permanently grounded in January. As you may have already heard, the summer schedule has been dramatically reduced this year compared to years past in spite of the promise of increased traffic. When asked about this decision, management has stated that there is a cost associated with ramping up the summer schedule and subsequently ramping it back down in the fall. The decision was made because they are unable to find "profitable" routes to place these aircraft on and it is cheaper to park them than fly them under current industry economics. Also, changes discovered through the PLI processes which affect hub/gate scheduling, the removal of galleys and the addition of seats will offset this reduction in aircraft capacity.-- ORD Domicile message, April 7, 2006
Below is the schedule for the S-80 aircraft being parked.
Code:Date Number of A/C going off schedule April 3 14 April 17 1 May 1 1 May 8 1 June 15 7 July 1 3
Why shrink so much with high load factor in spring/summer ?From the ORD APA domicile base blast:
Why shrink so much with high load factor in spring/summer ?
Because our "NEW" CFO made a comment eariler this past week that "AA needs to replace the "gas guzzler MD80's."
MD80's have served AA beter than most thought they would have but now is the time for them to be retired from the AA fleet.Aircraft technology advancements has passed them[MD80's]by and the money is better spent purchasing new,more fuel efficent aircraft.
As "unsettleing" as this is, I think ALL of us realize that "this" IS the road that we're gonna' travel.
NH/BB's
Capacity reductions across the industry will lead to return of profits.
This would have been true before stripping every airline employee of 50 years of negotiated pay and benefits.
Why is the capitialist econmic system so hard for mulit-million dollar executives to understand? Seems if they have college degrees, they would have been taught supply vs demand theories first, then how to dress and cash bonus checks.
Because our "NEW" CFO made a comment eariler this past week that "AA needs to replace the "gas guzzler MD80's."
So if oil hits $80 a barrel then the 757's will be fuel inefficient.
At $100 a barrel the 777 gets wiped out.
Then what???
We will all be at minimum wage with no benefits.
Is there a by-law in the TWU constitution that allows AA to lower our wages below miminum wage to preserve jobs and union dues?? We need to continue on our concessionary path until all our aircraft become fuel efficient. This is the bottom line it's a business.
Driving across the ramp the other day I noticed that the A/C were in the low 200 series, I believe I saw 207 and 215 there....$1oo/barrell would definitely be paingful, but it's more likely that DL & or NW would have to shut down at those levels. AA could then enter bankruptcy...it would almost be better for them. They could shed the bills they've been paying and use that cash to pay for fuel. Crappy scenario, but likely if fuel gets that high.
Is there any way to tell if these 27 M80's were older in AA's fleet? Two things I have heard is that winglets may be available for M80s and that the M90 engines may soon be marketed as a retrofit for 80's. Those two things alone could make some of the middle age 80's worth keeping. The older ones will be closing in on 30 yrs old by the time those enhancements are available.
This is probably the most prudent step AA could take economically. Losing money on every seat with the hopes of making it up through volume isn't a viable plan for making the company profitable.