American Airlines BIG order at PAS???

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Airmotive
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Joined: 12 Mar 2007, 19:43

American Airlines BIG order at PAS???

Post by Airmotive »

Not to be left behind the rumor mill....
(Copied from flightblogger.com)

Reliable sources inside the aviation industry have told Flightblogger that American Airlines intends to place a "massive" narrow and wide-body order at the Paris Air Show that includes:
- Boeing 787s - 100-125 firm, plus another 100 options
- Additional Boeing 777s - firm number unknown
- Boeing 737s - 100 firm, options unknown

This reasoning behind this order makes sense for the long term growth and modernization for American Airlines. The Boeing 787 fills an important place in the American fleet as older model Airbus A300s and Boeing 767s are retired. American currently operates a fleet of 34 A300s that range from 19 to 14 years old, as well as 73 767s. American has already announced that they will be retiring their non-ER 767-200s which range from 22 to 25 years old. The fleet of 299 McDonnell Douglas MD-82/83 are set to be retired beginning in 2009. The oldest is 24 years old. These aircraft have already been slated for replacement by Boeing 737-800s.

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tolipanebas
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Joined: 12 May 2004, 00:00

Post by tolipanebas »

A fleet renewal is definitely long overdue at AA.

However, it would be interesting news if there would actually have been a tender launched by AA with BOTH manufacturers. Otherwise, this order is not at its place at Le Bourget and we should reserve our fulkl attention to the real competitions between A and B like at QR, EK, and others....

smokejumper
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Joined: 21 Oct 2005, 00:00
Location: Northern Virginia USA

Post by smokejumper »

AA definately needs a major fleet renewal, but how will they afford it?

They, like all airlines, have struggled and endured 5-6 years of hard-times. Unlke other carriers, they've avoided bankrupcy, but are not in the best of financial shape.

Recall that Steven Udvar- Hazy said (about a month ago) that the US carriers are arrogant in their refusal to lease planes, perferring to buy them through bank loans. Perhaps, AA will consider a lease for a large acquisition of needed equipment. This approach will give them te neww equipment they need, while letting the equipment earn teh money to make the payments.

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Buzz
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Location: Hasselt

Post by Buzz »

Now that would be a MASSIVE order! It would be enough for Boeing to leave Airbus behind again in the 2007 order race...

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CXRules
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Joined: 06 Jul 2005, 00:00

Post by CXRules »

If I remember correctly, a few years ago, AA, DL, and CO signed a deal with Boeing that stated that Boeing will be the sole supplier for their fleet. If AA is going to put in that huge order, I'm sure it'll received some huge discount. Probably something even Airbus can't compete, especially now that the Euros is so expensive!

achace
Posts: 368
Joined: 16 Feb 2006, 00:00
Location: Manila Philippines

Post by achace »

Would not be surprised to see AA announce at least a partial lease deal, unless Boeing offer to fund the progress payments normally required when you buy new airplanes.

Funding a big order with revenue from the existing AA fleet which costs quite a lot to run, would not greatly impress their shareholders, as returns would be very low, so perhaps ILFC and others may have reason to smile shortly.

Cheers
Achace

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