American Airlines orders 35 more Boeing jets

[MERV]

American Airlines orders 35 Boeing jets to upgrade its fleet and phase out gas-guzzling planes.

American said Wednesday the Boeing ( BA - news - people ) 737-800 jets will be delivered in 2011 and 2012. American has a commitment to finance all 35 planes but did not disclose details.
http://www.forbes.com/feeds/ap/2010/07/21/business-industrials-us-american-airlines-jets_7784662.html?partner=alerts

 

[Bob Owens]

They plan on having us finance them with all the concessions.

35 more airplanes for the only carrier that seems to be claiming that they are losing money.

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[FWAAA]

Each plane will save AA $1.9 million a year in fuel costs based on the price AA paid in the second quarter and even more once fuel prices spike, which they will once the economy recovers. AA also gains a maintenance holiday by replacing MD-80s in need of heavy C checks with new 738s that won't need a heavy C check for the first 5-6 years.

Bob would prefer that AA spend millions more on fuel, helping to ensure that AA reports losses forever. Bob must own stock in oil companies.

 

[damajagua]

Each plane will save AA $1.9 million a year in fuel costs based on the price AA paid in the second quarter and even more once fuel prices spike, which they will once the economy recovers. AA also gains a maintenance holiday by replacing MD-80s in need of heavy C checks with new 738s that won't need a heavy C check for the first 5-6 years.

Bob would prefer that AA spend millions more on fuel, helping to ensure that AA reports losses forever. Bob must own stock in oil companies.

Agree with you 100% on this one. I am not a big fan of our leadership at the top.
But the announcement of new airplanes should be something to be happy about.
When I see the company buying new airplanes it is an investment in the future
of the company. At the end of 2012 we will have almost 200 737-800
I would not be surprise if we end up ordering more 737.

 

[Bob Owens]

Agree with you 100% on this one. I am not a big fan of our leadership at the top.
But the announcement of new airplanes should be something to be happy about.
When I see the company buying new airplanes it is an investment in the future
of the company. At the end of 2012 we will have almost 200 737-800
I would not be surprise if we end up ordering more 737.

If you were renting a room to someone who says they cant pay the rent and then they pulled into your driveway with a brand new hybrid and told you how much fuel it was going save would you accept that?

Buy all the planes you like, just dont tell me that you cant afford to pay me the going rate.

We are employees of AA, not owners, not business partners not investors, we are workers and we should not forgo compensation so that management can take it and increase the wealth of shareholders.

 

[Bob Owens]

AA also gains a maintenance holiday by replacing MD-80s in need of heavy C checks with new 738s that won't need a heavy C check for the first 5-6 years.

Bob would prefer that AA spend millions more on fuel, helping to ensure that AA reports losses forever. Bob must own stock in oil companies.

So you are saying that we should be willing to work for less so AA will have less work for us?

I would prefer that AA quit lying, and that our International officials would quit doing everything they can to get us to believe those lies, and pay us what we deserve.

If they can buy all these new planes they can pay us. They have billions coming in and its their choice on where they spend it. We have deliverd, without sending work out, in fact we brought more in we are bringing in around $100,000 more per person than we did when we took the cuts, they can easily restore what they took but they may have to back off on some of their other shopping habits.

AA says they cant pay us but "cant" isnt the right word when its really a choice. Like the boarder who says he cant pay the rent because he wants to buy new cars. He can rationalize all he wants, fuel savings, investment to enable him to get to work etc.

You say they will save $1.9 million/year on fuel but how much will they be spending on payments? Thats what I have to consider when I think about replacing my 17 year old car.

 

[jimntx]

If you were renting a room to someone who says they cant pay the rent and then they pulled into your driveway with a brand new hybrid and told you how much fuel it was going save would you accept that?

Though, I understand and applaud the actions to replace the S80s, I have to say, Bob, that I LOVE the analogy. Quite apt.

I have a friend here in Dallas who rented a room to a young man who down the road announced that he would be late with his rent because he was broke. He said this while "modeling" the $500 shirt he had just bought at Barney's New York at Northpark Mall.