American to make deeper cuts in capacity
9:28 AM Wed, Jan 21, 2009
Terry Maxon
A delay in the delivery of new jets has prompted American Airlines Inc. to cut its capacity even more than originally planned.
American based its capacity plans on the assumption that it would receive 36 new Boeing 737-800s in 2009. However, the Boeing strike has slowed the delivery to only 29 jets this year.
The carrier could have kept flying some of the old McDonnell Douglas MD-80s to substitute for the late-arriving Boeing airplanes, but decided not to do so, parent AMR Corp. said in its earnings release today.
"As a result of the uncertainty surrounding the economic climate, the company has decided not to use MD-80s to backfill flying associated with the seven 737s that no longer will be delivered in 2009," AMR said.
"Largely as a result of this decision, the company's 2009 mainline capacity will decline by more than one percentage point compared to previous guidance provided in October," AMR said.
AMR is projecting that:
• For all of 2009, American Airlines capacity will decrease by more than 6.5 percent compared to 2008. Domestic capacity will be down about 9 percent and international capacity will be off 2.5 percent compared to 2008. Including American Eagle and other regional partners, total capacity will decrease nearly 7 percent.
• In first quarter 2009, American's capacity will drop more than 8.5 percent below first quarter 2008. Domestic capacity will fall more than 11.5 eprcent and international capacity will drop nearly 4 percent. Including regional partners, total capacity will be down more than 8.5 percent.
• Capacity on the regional carriers will decline about 9.5 percent in the first quarter year over year, with 2009 capacity for the full year down more than 8 percent compared to 2008.
Here's the new schedule for delivery of the Boeing 737-800s:
Year Original Revised Change
2009 36 29 -7
2010 39 40 -1
2011 0 8 +8
9:28 AM Wed, Jan 21, 2009
Terry Maxon
A delay in the delivery of new jets has prompted American Airlines Inc. to cut its capacity even more than originally planned.
American based its capacity plans on the assumption that it would receive 36 new Boeing 737-800s in 2009. However, the Boeing strike has slowed the delivery to only 29 jets this year.
The carrier could have kept flying some of the old McDonnell Douglas MD-80s to substitute for the late-arriving Boeing airplanes, but decided not to do so, parent AMR Corp. said in its earnings release today.
"As a result of the uncertainty surrounding the economic climate, the company has decided not to use MD-80s to backfill flying associated with the seven 737s that no longer will be delivered in 2009," AMR said.
"Largely as a result of this decision, the company's 2009 mainline capacity will decline by more than one percentage point compared to previous guidance provided in October," AMR said.
AMR is projecting that:
• For all of 2009, American Airlines capacity will decrease by more than 6.5 percent compared to 2008. Domestic capacity will be down about 9 percent and international capacity will be off 2.5 percent compared to 2008. Including American Eagle and other regional partners, total capacity will decrease nearly 7 percent.
• In first quarter 2009, American's capacity will drop more than 8.5 percent below first quarter 2008. Domestic capacity will fall more than 11.5 eprcent and international capacity will drop nearly 4 percent. Including regional partners, total capacity will be down more than 8.5 percent.
• Capacity on the regional carriers will decline about 9.5 percent in the first quarter year over year, with 2009 capacity for the full year down more than 8 percent compared to 2008.
Here's the new schedule for delivery of the Boeing 737-800s:
Year Original Revised Change
2009 36 29 -7
2010 39 40 -1
2011 0 8 +8
