AA to replace domestic fleet

[damajagua]

Report: American Airlines to replace US fleet
Report: American Airlines in talks with Airbus and Boeing over $15 billion aircraft deal


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{"s" : "amr,ba","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} On Wednesday June 29, 2011, 8:57 pm EDT
FORT WORTH, Texas (AP) -- American Airlines is in talks with aircraft manufacturers Airbus and Boeing Co. to purchase at least 250 aircraft in a deal valued at about $15 billion, The Wall Street Journal said.

The report published Wednesday cites unnamed persons familiar with the matter who say American seeks to replace its entire domestic fleet.

Such a transaction would represent a potential windfall for the rival aircraft makers and a bold step by American Airline parent company AMR Corp. to lift the airline's fortunes.

American, based in Fort Worth, Texas, is facing higher costs from rising jet fuel prices, in part because of its older-model aircraft. Earlier this year, after posting a $436 million first-quarter loss, AMR announced it would scale back plans to add new flights and retire at least 25 older, gas-guzzling MD-80 planes later this year and add newer planes to its fleet.

American worked out a tentative agreement with Airbus several weeks ago without telling Boeing, then approached Boeing and asked it to make a counter offer, according to the report.

Airbus is offering American discounts, special financing terms and other incentives to win the deal, the Journal said.

American's entire 620-plane fleet is made up of Boeing aircraft and the airline is considering purchasing planes from Boeing's roster of 737 models, which include the 737-700 and 737-900 -- aircraft that American doesn't fly now, the Journal reported.

The airline has 54 737-800s scheduled to enter its fleet by 2013, has more 777s on order and is a customer for Boeing's 787 Dreamliner aircraft, the Journal said.

Still, American also is interested in Airbus' A320 planes, including a model with a new engine that is slated to go into production in 2015, according to the Journal report.

American wants to nail down the terms of the aircraft order this summer, the Journal said, citing the persons familiar with the matter.

Representatives from American, Boeing and Airbus declined to comment.

AMR shares ended the regular session down 13 cents, or 2.4 percent, to $5.41. Shares of Chicago-based Boeing ended up 63 cents to $72.72.

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[FA Mikey]

Please let it be Boeing.

 

[Overspeed]

I heard the A320 is a better plane to work on maintenance wise than the 737. Being my only experience is with A300 hard to believe it's true. Any A320 people have insight and experience on which is better? UA mechanics have worked on both types. What do you people like better?

 

[FWAAA]

Bob Owens recently posted that Airbus planes are typically the mechanics' best friend; they tend to require more maint than comparable Boeing planes and that tends to inflate overtime, always a good thing for paychecks.

 

[Hopeful]

Bob Owens recently posted that Airbus planes are typically the mechanics' best friend; they tend to require more maint than comparable Boeing planes and that tends to inflate overtime, always a good thing for paychecks.

I can only speak for the A300...yes it was the overtime generator of the fleet.
But from what I have read, the A320 is more fuel efficient than the 737...Something Boeing has recently addressed with regards to either designing a new aircraft or re-engine it.

But you gotta admit....It should be an interesting negotiation session the week of July 11 with all this wonderful news.

 

[AANOTOK]

But you gotta admit....It should be an interesting negotiation session the week of July 11 with all this wonderful news.

Yep, Fleet went back to the table this past Tuesday. Not a word yet.

 

[jimntx]

Thread #1: link

Thread #2: link[/url/]

Sorry about that. The insert link button doesn't seem to like to put a link anywhere but at the beginning of a post, and only one link per post.




So, how many threads are we going to have on this same subject? Does everyone who finds a different (or the same) news link on this subject get to open their own thread? Not judgin'. Just sayin'.

 

[fltguymk]

So, how many threads are we going to have on this same subject? Does everyone who finds a different (or the same) news link on this subject get to open their own thread? Not judgin'. Just sayin'.

Let's just try to stick to the topic on this thread....

 

[jimntx]

How about we all act like grownups and look to see if someone else has already started a thread on the topic that is hot news to us because we just found out about it 2 weeks after the fact?

 

[eolesen]

Agree.... we've had three different discussions on fleet types going on....


Interesting reading here at http://www.glgroup.com/News/The-impact-of-the-Airbus-A320neo-program-51943.html

If he's correct that the 320neo may only going to wind up with a 3-4% cost advantage over the 73NG's, and that Boeing can still squeeze another 1-2% out of the current platform, I'd be shocked if the Airbus story wasn't more than just a whipping horse to get Boeing down more on price...

In March, Adam Pilarski from Avitas spoke at the ISTAT conference about Boeing's options regarding a new design or their own new engine option ( http://www.flightglobal.com/articles/2011/03/14/354329/avitas-expects-a-boeing-737-re-engine-announcement-in.html )

He said "waiting to offer a significant improvement in narrow body efficiency will give the A320neo, Irkut MS-21 and Comac C919 an opportunity to fortify and gain a 'beach head' against Boeing."

The orders at Paris would indicate that the beachhead is indeed being built.

If Boeing agrees that the message from Paris was another engine option, AA is the right size order to justify the program.

 

[Bob Owens]

Bob Owens recently posted that Airbus planes are typically the mechanics' best friend; they tend to require more maint than comparable Boeing planes and that tends to inflate overtime, always a good thing for paychecks.

That was our experience with the A-300, but then again we flew the crap out of them. The Boeings seem to be generating plenty of OT at both the bases and the lines now.

 

[FA Mikey]

The 737 is already common to the fleet. With a 700, 800 and 900er available why touch another airbus.

 

[FWAAA]

At the current pace, AMR will likely spend $8 billion on fuel this year, about $6.5 billion more than it did in 1998 or 1999. With passengers resisting fare increases (fares are currently not a whole lot higher than in those two years of very cheap fuel costs), new fuel efficient planes probably represent the best chance employees have of ever achieving meaningful wage hikes. Just think - at 1998-99 fuel prices, AMR would earn over $5 billion this year; more than enough for "restore and more." Over the past decade, AMR has spent about $25 to $30 billion more on fuel than it did in the previous decade. THAT's where the wage concessions of 2003 went (and then some).

With "A Stimulus per Day" President Obama in the WH, seems to me that he should be cheerleading some form of stimulus package to help AMR (and DL and UA) buy new fuel efficient fleets. It would help airplane manufacturers, it would lessen fuel consumption, ordinary pollution and carbon emissions (environmentalists would rejoice) and it would indirectly help keep airfare low (once-a-year vacation flyers would rejoice). What's not to like?

One of management's biggest failures of the past decade was not replacing the MD-80s faster. As I've posted before, had AA accelerated 738 deliveries in 2004 or 2005, AA would have saved billions in fuel by now. Probably should have been the first order of business after the ink was dry on the concessions in 2003. Even the APFA agrees with me on this one. This failure has cost AMR extra billions of dollars in fuel expense.

 

[FWAAA]

d elete duplicate

 

[jimntx]

So, the answer is for us to continue taking it in the financial shorts to make up for management's failures and misjudgements?