AA to buy Airbus instead of leasing them.

[700UW]

AA has ended its lease deal with airbus for 130 A320 fam ac. It will buy 62 w/ deliveries from 1Q15 to 3Q17...
 
Per Edward Russel of Flight Global.
 
So much for trading them in and getting a new plane when the heavy checks are due.

 

[UPNAWAY]

My guess is most will be sold and leased to third parties anyway just not directly through airbus.

 

[700UW]

You had certain mechanics on here saying that Airbus will trade AA a new plane when an older one is due for its heavy check.
 
I called BS on that, never will happen.

 

[MetalMover]

AA has ended its lease deal with airbus for 130 A320 fam ac. It will buy 62 w/ deliveries from 1Q15 to 3Q17...
 
Per Edward Russel of Flight Global.
 
So much for trading them in and getting a new plane when the heavy checks are due.

They could still sell them before the major OH is due....This way if they choose, they can sell them whenever they want.

 

[eolesen]

Sorry, but this is quite normal and a smart move. AA buy them with cash while they're profitable, and can always do a sale or a sale-leaseback later if they have a need for cash later.

 

[700UW]

A leaseholder and a new buyer will want the required checks done before taking possession of the plane, that is standard industry practice.
 
The plane loses value if the checks arent done.
 
And actually they cant sell them whenever they want, as the majority of them will most likely have an EETC backing, so those need to be paid off before the plane can be sold.
 
And how would they buy a new plane, not knowing when the old plane is leaving the fleet for a new owner?

 

[RJcasualty]

In spite of the company's hefty debt load, some on Wall Street had issues with AAG's cash hoard. Doesn't this take some cash off the table?

 

[eolesen]

A leaseholder and a new buyer will want the required checks done before taking possession of the plane, that is standard industry practice.

Thanks for stating the obvious.
 

And actually they cant sell them whenever they want, as the majority of them will most likely have an EETC backing, so those need to be paid off before the plane can be sold.
 
And how would they buy a new plane, not knowing when the old plane is leaving the fleet for a new owner?

You'd think this were the first time an airline had owned an airplane instead of leasing it... Newsflash... Most airlines have traditionally owned about 40-60% of their fleet.

 

[700UW]

You are not getting the point E.
 
Several AA mechanics stated that when an PMAA Airbus is needing its heavy check, Airbus will give them a new plane and Airbus will take the old one back.
 
Maybe you need to brushen up on your comprehension skills.

 

[MetalMover]

You are not getting the point E.
 
Several AA mechanics stated that when an PMAA Airbus is needing its heavy check, Airbus will give them a new plane and Airbus will take the old one back.
 
Maybe you need to brushen up on your comprehension skills.

So, just because AA is BUYING aircraft MEANS that they CAN"T or WON"T sell them before the major check is due? 
No one said AA will give them shiny new aircraft unless they want shiny new aircraft. 

 

[700UW]

No one will buy an airplane that is due for its heavy check, even lease returns have to be up to date on all their checks.

 

[MetalMover]

No one will buy an airplane that is due for its heavy check, even lease returns have to be up to date on all their checks.

What's the due date for an A320 heavy check?

 

[700UW]

The S-Check is on a 5 to 6 year interval, depending when it was built, the older ones are 5 to 5 1/2 years, new builds are six year, and it goes through a C1 through C12 before the S-Check.

 

[DallasConehead]

Who is to say if those heavy checks get done by AA people. Just because AA is buying the plane and if they want to dump them down the road and it will need a heavy before the buyer takes possession, they could send them anywhere to get the checks done.

 

[eolesen]

AA has leased aircraft for decades, and never once skipped an overhaul. So have HP and US.

If you want to take obvious fear mongering seriously, go for it, but it makes you look like even more of a fool than the fools spreading the "Airbus will give them a new one" BS.