American Airlines to Install 767-300ER Blended Winglets

[FA Mikey]

American Airlines and Aviation Partners Boeing (APB) announced today that American will become the launch customer for APB's Blended Winglets(tm) for the Boeing 767-300ER, which will save the airline, at minimum, another 17 million gallons of fuel per year.

American will remove from service a B767-300ER and lease it to the winglet supplier, APB, for an eight-month flight test certification program, beginning in January 2008.

APB has designed an 11-foot high advanced-technology Blended Winglet for the 767-300ER with the capability of saving 4-5 percent on fuel consumption, depending on the length of the flight. It could also extend the range of the aircraft by as much as 360 nautical miles and improve take-off performance, providing as much as 12,000 pounds of additional payload

 

[Oneflyer]

American Airlines and Aviation Partners Boeing (APB) announced today that American will become the launch customer for APB's Blended Winglets(tm) for the Boeing 767-300ER, which will save the airline, at minimum, another 17 million gallons of fuel per year.

American will remove from service a B767-300ER and lease it to the winglet supplier, APB, for an eight-month flight test certification program, beginning in January 2008.

APB has designed an 11-foot high advanced-technology Blended Winglet for the 767-300ER with the capability of saving 4-5 percent on fuel consumption, depending on the length of the flight. It could also extend the range of the aircraft by as much as 360 nautical miles and improve take-off performance, providing as much as 12,000 pounds of additional payload

My only question would be why they didn't do this in 2003 or 2004 when loads were lighter and revenue was down.

 

[FWAAA]

My only question would be why they didn't do this in 2003 or 2004 when loads were lighter and revenue was down.

My guess is that jet fuel wasn't expensive enough in those years to convince them winglets made financial sense. Just like AA's failure to outfit its 738s with winglets when they first became available.

In 2003, AMR paid an average of $0.877/gal
In 2004, that was up to $1.216/gal
In 2005, fuel cost a whopping $1.735/gal
In 2006, fuel was $2.014/gal

And add to that the precarious cash position in 2003-04, and I can see why they waited. Management was clearly hoping that fuel would slide back down to the 1998-99 average price of $0.55/gal (when money invested on fuel efficiency wouldn't have looked like a good idea).

 

[FrugalFlyerv2.0]

Were winglets for the 767's even an available option "back then"?

 

[IORFA]

NO, per the article, they won't be available till late 2008. AA is leasing a 767-300 to APB to do the FAA certification tests starting JAN 2008. They think it will take approx. 8 months, according to the news release.

 

[aapitbull]

My guess is that jet fuel wasn't expensive enough in those years to convince them winglets made financial sense. Just like AA's failure to outfit its 738s with winglets when they first became available.

In 2003, AMR paid an average of $0.877/gal
In 2004, that was up to $1.216/gal
In 2005, fuel cost a whopping $1.735/gal
In 2006, fuel was $2.014/gal

And add to that the precarious cash position in 2003-04, and I can see why they waited. Management was clearly hoping that fuel would slide back down to the 1998-99 average price of $0.55/gal (when money invested on fuel efficiency wouldn't have looked like a good idea).

I was told that about 1.80 a gallon was the tipping point to make the investment in winglets viable what I have heard is they wanted them to pay for themselves in 12 months.

 

[StraaightTaalk]

FWIW, someone one airliners.net had reported that the company was also considering adding winglets to the 767-200 fleet, especially as this "niche" aircraft (transcon flying) is likely to be in the fleet for some time to come.

 

[TWU informer]

Money to Burn now boys.

Concessions have paid off nicely!

 

[eolesen]

So, the fact that there's a one year payback at current fuel prices has nothing to do with it? Wrong. The only thing that the concessions has to do with it is that the work will be done by AA mechanics and not sent to TIMCO or some other MRO outfit.

If fuel goes up, the payback is faster, and it's quite unlikely that the price is going to go down.

By partnering with Aviation Partners, AA gets to lock up the early production slots, and winds up with a nice cost advantage over other large 767 operators like DL for however long it takes them to get slots. Partnering early also gives AA the ability to attract business from other carriers who want the mod.

 

[FWAAA]

Money to Burn now boys.

Concessions have paid off nicely!

I would have thought that investments that reduce fuel consumption would be cause for celebration among the working stiffs, but what do I know?

767 winglets would seem to indicate that AA is in no big hurry to order shiny new 787s, and new airplanes are a hundred times more expensive than a set of winglets.

I also thought (foolishly, of course) that the working stiffs would be celebrating all the modification work that's been announced lately; the 757 cabin refurb, the 767 winglets, the 762 cabin refurb project, etc. Lotsa maintenance work. Guess it would have been better if AA had parked the old planes and tried to shrink to profitability. It's worked so well at UA.

Are there any investments that are a GOOD idea? Or is the only good use of the money a restoration of the concessions? Sadly, I don't think that's in the cards.

 

[TWU informer]

Yeah, I get it.

Management Bonus Awards pay for themselves because the superior management doesn't leave.

The Interior Mods pay for themselves because customers will pay more to sit in a clean seat.

The Winglet Mods, pay themselves in Fuel Consumption Reduction.

The $100 Million investment in M&E pay for itself becuase the TWU will rollover to get it.

The Underfunding Pension Legislation pays for itself because AA can keep the money for more Management Compensation.

Hiring ECLAT, Boston Consulting, and Overland Resource pays for itself because Union Leaders are hoodwinked into trusting Superior Airline Management.

Soon enough, converting the Aircraft Maintenance Manuals to Spanish will pay for itself by creating a whole new labor pool to recruit from.

See, I understand AA Business more than you think I do.

 

[777 fixer]

By partnering with Aviation Partners, AA gets to lock up the early production slots, and winds up with a nice cost advantage over other large 767 operators like DL for however long it takes them to get slots. Partnering early also gives AA the ability to attract business from other carriers who want the mod.

And by being the launch customer that measn AA is getting a good deal on them as well. It does look like that AA will have to do some gate rearranging to accomodate the ten foot increase in wingspan.

< http://www.aviationpartnersboeing.com/prod.../767-300ER.html >

 

[eolesen]

Perhaps, but at 167', it will fit on a B777 gate (199') or any gate which handled the MD11 (169') prior to their retirement.

 

[Nor'Easta]

Here is the entire story from jetnet:

American Airlines And Aviation Partners Boeing Team Up To Certify And Install 767-300ER Blended Winglets


Minimum Annual Fuel Savings of 290,000 Gallons Per Aircraft

FORT WORTH , Texas – American Airlines and Aviation Partners Boeing (APB) announced today that American will become the launch customer for APB’s Blended Winglets ™ for the Boeing 767-300ER, which will save the airline, at minimum, another 17 million gallons of fuel per year.

American will remove from service a B767-300ER and lease it to the winglet supplier, APB, for an eight-month flight test certification program, beginning in January 2008.

APB has designed an 11-foot high advanced-technology Blended Winglet for the 767-300ER with the capability of saving 4-5 percent on fuel consumption, depending on the length of the flight. It could also extend the range of the aircraft by as much as 360 nautical miles and improve take-off performance, providing as much as 12,000 pounds of additional payload. APB plans to receive a Supplemental Type Certificate for 767-300ER Blended Winglets by November 2008.

Upon completion of the certification program, American plans to install winglets on its entire fleet of 58 B767-300ER aircraft, with each airplane expected to save at least 290,000 gallons of fuel each year. American expects to modify all of the aircraft by mid-year 2010. The installation work will be accomplished by American’s Maintenance & Engineering organization, which conducts more than 90 percent of American’s maintenance.

“We will conserve 17 to 21 million gallons in fuel annually for the B767-300ER fleet,†said Bob Reding, American’s Senior Vice President - Technical Operations. “Once we install winglets on all of our current Boeing 737, Boeing 757, and the B767-300 fleet, we will be saving over 42 million gallons of fuel per year.â€

Besides the compelling cost savings, this fuel burn improvement also results in a reduction of 423,000 tons of carbon dioxide (CO 2) emissions annually. CO 2 is believed to be a contributor to climate change.

“Not only are we obtaining a substantial fuel cost reduction, but we are helping to sustain our environment with the installation of these winglets,†Reding said.

Today, through its FuelSmart conservation program, American saves more than 95 million gallons of fuel annually. At today’s prices of approximately $2.00 per gallon for jet fuel, Blended Winglets are expected to save American about $84 million a year.

“We are absolutely pleased that the in-service performance of our existing products has convinced American Airlines to become our launch customer and flight test partner for the most ambitious development program we have undertaken to date,†said John Reimers, Aviation Partners Boeing President and CEO. “Given today’s high fuel prices and the proven benefits of our technology, we fully expect that the first couple of year’s worth of 767-300ER Blended Winglet delivery positions will sell-out at a record pace.â€

American Maintenance Services would install the 767, 757 and 737 Blended Winglets on other Aviation Partners Boeing customers’ aircraft at its existing base maintenance facilities in Tulsa, Okla.; Kansas City, Mo.; or Fort Worth, Texas.

“We not only have a highly-experienced work force with an average of 16 years service, but we also have the technical and engineering capability and the facilities with sufficient capacity for such complex structural work. Our focus is to provide value to our customers that they will not find elsewhere,†Reding said.

ABOUT APB
Aviation Partners Boeing is a joint venture of Aviation Partners, Inc. and The Boeing Company. Based in Seattle, APB has already certified its patented Blended Winglet technology for the Boeing Business Jet, 737-800, 737-700, 737-300, and 757-200. APB is also currently in the process of certifying Blended Winglets for the 737-900

and 737-500. Today, over 1,600 Boeing aircraft have been equipped with Blended Winglets. By 2010, APB expects that Blended Winglets will have saved the world’s airlines over 2 billion gallons of fuel.

 

[AMFAMAN]

It does look like that AA will have to do some gate rearranging to accomodate the ten foot increase in wingspan.

Not to mention hangar problems. The 737's and 757's with winglets have already made for some hangar space issues.