US Airways and Airbus S.A.S.
Execute Aircraft Purchase Agreements
Airline Announces Execution of Purchase Agreements for Airbus Aircraft Order Announced in June
TEMPE, Ariz., Oct. 4 /PRNewswire-FirstCall/ -- US Airways (NYSE: LCC) and Airbus S.A.S. have entered into definitive aircraft purchase agreements for 92 new aircraft, including 32 wide-body and 60 A320 Family narrow-body aircraft, incorporating the terms of the aircraft order announced in June.
The airline executed a purchase agreement for 22 A350 XWBs in both the -800 and larger -900 series configuration. This allows for modest international expansion or replacement of existing older technology aircraft should market conditions warrant.
The airline will take delivery of the first A350 XWBs in 2014, becoming the North American launch customer for the fleet type. Purchase rights for additional aircraft are included, allowing for the eventual retirement of all other wide-body jets and leaving the airline with a single intercontinental fleet type of A350 XWBs.
The airline also executed a purchase agreement for 10 A330-200 aircraft with deliveries starting in 2009 and flexibility to convert to A330-300 or longer range A340s. These deliveries will facilitate the eventual retirement of US Airways' B767 fleet.
A third purchase agreement was executed for 60 narrow-body aircraft, including 10 A319s, 40 A320s and 10 A321s, with conversion rights. Narrow-body deliveries, including 37 aircraft from a previous purchase agreement, run from 2008 through 2012. Classic Boeing 737-300/400s will be eliminated from the fleet as the A320s are delivered. The narrow-body fleet count is expected to remain stable.
US Airways CEO and Chairman Doug Parker said, "We are very pleased to have cemented our order with Airbus and look forward to continued success as we add these new safe, efficient and comfortable airplanes to our fleet. Our employees will benefit from new, state-of-the-art aircraft in which our customers will receive the great service they deserve and expect."
US Airways is the fifth largest domestic airline employing more than 36,000 aviation professionals worldwide. . .
enviroian
Oct 5, 07, 10:31 am
or longer range A340s
I don't think "or" is an option if they want to fly to China, no?
BoeingBoy
Oct 5, 07, 10:41 am
I don't think "or" is an option if they want to fly to China, no?
That's the one thing in the announcement that surprised me a little - they didn't exercise the option to convert some of the A332's to A340's. I'm assuming that either the delivery schedule wouldn't have them on the property in time (first deliveries aren't specified other than "2009") or they're still hoping to find some used A340's on the cheap (or at least short-term leases till the 350's arrive).
Jim
AZ Travels the World
Oct 5, 07, 10:59 am
. . . I'm assuming that either the delivery schedule wouldn't have them on the property in time (first deliveries aren't specified other than "2009") or they're still hoping to find some used A340's on the cheap (or at least short-term leases till the 350's arrive).
That was my assumption, too. If they can pick up used 340s on shorter term deals for Asia to get them by until the 350s are available, they can avoid being stuck with 340s long-term.
coachrowsey
Oct 5, 07, 11:29 am
And they can't pay employees a decent wage:td:
Cargojon
Oct 5, 07, 11:54 am
Or keep decent flight to/from PIT. :mad:
gsforfree
Oct 5, 07, 12:06 pm
I don't think "or" is an option if they want to fly to China, no?
I'm guessing at the time the contract was drawn up, China wasn't a definitive destination, so they wanted to keep their options open. I wouldn't be surprised if Airbus rushes delivery for US's china route. Good PR, relationship, etc.
Every1 Get A Life
Oct 5, 07, 2:03 pm
That's the one thing in the announcement that surprised me a little - they didn't exercise the option to convert some of the A332's to A340's. I'm assuming that either the delivery schedule wouldn't have them on the property in time (first deliveries aren't specified other than "2009") or they're still hoping to find some used A340's on the cheap (or at least short-term leases till the 350's arrive).
Jim
I'm about 99.9% positive that when I was reading an answer in the China proceedings that US said that new build A340s (or A330s for that matter)couldn't arrive until about June/July 2009, not in time to start them for China, and thus they were looking for the used A340s on the market to start the flight. The flight starts in March, but to get the crew up to speed and get them ready for first flight I would imagine they would need to be in the property by the first of the year 2009. US may think that they can find a sufficient number of A340s on the used market (the 4-5 specified) and thus might never need to exercise those options. Finding used A340s and receiving only new build A330s makes much more sense, imo.
Greg P.
Oct 5, 07, 4:48 pm
Wow that's alot of Airbii. It's nice to see US upgrading the fleet, but a little dissappointing that there are no Boeing aircraft in the mix.
Does US still have a grudge against Boeing?
lt1GM
Oct 5, 07, 5:35 pm
I think the real news is only 9 replies to this major announcement thread in 6+ hours.
Hey DoUgIe: WE. DON'T. CARE.
AZ Travels the World
Oct 5, 07, 5:38 pm
Does US still have a grudge against Boeing?
I don't know that it's a grudge against Boeing at this point; more like some loyalty to Airbus, given their support of both HP and US through their various bankruptcies.
Even then, you can be sure this was all about the economics -- price and the availability of more fuel efficient aircraft. I can't imagine that US would get close to a 787 for a very long time and as the North American launch customer of the A350, they'll be in more fuel efficient aircraft faster going with Airbus.
ETManning
Oct 5, 07, 6:17 pm
Or keep decent flight to/from PIT. :mad:
Or cure cancer.
asimu pawa
Oct 5, 07, 6:58 pm
And they can't pay employees a decent wage:td:
Or keep decent flight to/from PIT. :mad:
Or keep this thread on topic. ;)
I don't see what the big fuss is about. I figure replacing any run down aircraft they can is a good thing.
ECOTONE
Oct 5, 07, 8:36 pm
It will certainly be nice to phase out those dirty 737s - would have liked to see the larger planes come online a bit earlier - i'd imagine the a350 xwb will be, with its current design, somewhat outdated by 2014.
micfly
Oct 5, 07, 11:18 pm
Wow that's alot of Airbii. It's nice to see US upgrading the fleet, but a little dissappointing that there are no Boeing aircraft in the mix.
Does US still have a grudge against Boeing?
Remember the Boeing 733 PIT crash.
EricH
Oct 6, 07, 7:46 am
Bankruptcy here we come!
jerseyfinn
Oct 6, 07, 9:43 am
Despite the half empty glass outlook which abounds here these days, the part I'm looking at is:
10 A330-200 aircraft with deliveries starting in 2009 and flexibility to convert to A330-300 or longer range A340s. These deliveries will facilitate the eventual retirement of US Airways' B767 fleet.
If you're flying TA, you already know what crap the 67s are at the moment. They've done a rehab on the coach seats, but 67 Envoy is a miserable product not worth what they're charging. Yet talk I heard last month was they're gonna put new Envoy seats in the 67s. That's fine, but I fear anything which could give Tempe an excuse to lay back on receiving the 330s -- 'starting 2009' could turn out to be something closer to 2010 if economics change.
Still, this purchase is a big committment. The upside is that Tempe is gonna have to behave like a real mainline carrier. Maybe this means they confront for once and all this hybrid crap shoot that's been such a nightmare for east pax to grasp and they stop this BS about mergers and run the airline they bought.
The downside to this purchase is . . . . . Tempe.
Hope for the best and see what else comes up the pike as well.
Barry.
steve64
Oct 7, 07, 12:36 pm
Does US still have a grudge against Boeing?
The "merger" was actually a new holding company formed by America West to purchase both airlines (as opposed to HP buying US directly). Airbus was an investor in this new company. Part of the agreement was that the "new" airline would buy the A350. There were some stipulations that they could back down and buy the 787 instead if the A350 couldn't promise certain delivery dates and/or performance criteria.
Plus, standardizing the fleet makes a lot of sense. And currently aren't there already more Airbii than Boeings ? And all of the Boeings they currently own are old. So probably cheaper to for them to convert to all Airbii than all Boeing.
Steve
grahampros
Oct 7, 07, 6:31 pm
would have liked to see the larger planes come online a bit earlier - i'd imagine the a350 xwb will be, with its current design, somewhat outdated by 2014.
Unlikely. Airbus recently annouced that they were converting the 350 to an all composite fuselodge. It will likley be a very competitive aircraft in it's size range..which is more geared to 340/777 replacements that smaller 330/767.
However, given the latest change, I would expect to see further delays in the roll out of the 350.
Rumor has is that Boeing will be annoucning major upgrades to the 777 in a year or two to stay competitive with the 350. Higher on their priority list than the next next gen 737.
N830MH
Oct 8, 07, 12:19 am
Remember the Boeing 733 PIT crash.
Yes, I don't even considerable to remember what happened 733 was crashed near PIT. It was something wrong these aircraft has been mechanical problems. Maybe US will even get rid of 737 classic. I don't have a certainly agree if US will gets new Airbus A320 is good commercial aircraft. It would be free up some more new cities. I would assume if US will accepted delivery begin in 2009, am I right? :confused:
BoeingBoy
Oct 8, 07, 2:26 am
I would assume if US will accepted delivery begin in 2009, am I right? :confused:
Actually, A321's will start being delivered next year.
Jim
mlsrar
Oct 8, 07, 2:36 pm
Please, know that I'm am speaking from a very NW-centric POV here. Regardless of one's preference to A vs. B, I must say that a new fleet did wonders to the NW international product, in Y particularly.
The upgrades in J were agnostic to the fleet (of course, the -10s never saw them). But the new Y product for overseas travel really revamped the image of the airline. Many of those changes are slowly being filtered back into a better domestic product as well.
Maybe this wholesale fleet upgrade is what US needs?
Just my lurking .02.
PresRDC
Oct 8, 07, 2:42 pm
If the concern over US chosing Aibus over Boeing is some type of 'buy American" type of thing, well, I cna tell you that it is not so simple. Any airplane is made-up of thousands of components and these components are made all over the world, such that neither product can reasonably be considered the product of any one country or region.
The airliner business is arguably the best example of a truly global business.
ECOTONE
Oct 8, 07, 3:14 pm
Maybe this wholesale fleet upgrade is what US needs?
No doubt that it'll help improve customer's experiences onboard - but what new planes don't solve is the wholesale decimation of the first class cabins across the fleet - a change I'd venture to guess we'd see on all new planes.
Admittedly though, I've become pessimistic towards US.
PHL
Oct 8, 07, 8:15 pm
Please, know that I'm am speaking from a very NW-centric POV here. Regardless of one's preference to A vs. B, I must say that a new fleet did wonders to the NW international product, in Y particularly.
That sounds familiar. The US intl. product made leaps and bounds when they took delivery of the A330's in 2000 and really expanded European service. Coach, until a year ago when they squeezed the rows together, was the best across the Atlantic. Envoy won awards and rave reviews.
The new 767 seats will bring those old aircraft up to snuff. If only the service would come back up to par....
kenhawk
Oct 8, 07, 10:17 pm
I just completed a trip from DCA to PHX in a 757 that was completely run down - my F seat was missing an arm rest pad, the bins would not close properly, the shades did not stay up and the F class lav had no water in the sink.
It's amazing to me that US management lets this happen. I would be embarrased to have my customers see my facility in this condition. Shame on them.:td:
New aircraft cannot get here soon enough!
crunchie
Oct 9, 07, 12:33 am
I just completed a trip from DCA to PHX in a 757 that was completely run down - my F seat was missing an arm rest pad, the bins would not close properly, the shades did not stay up and the F class lav had no water in the sink.
It's amazing to me that US management lets this happen. I would be embarrased to have my customers see my facility in this condition. Shame on them.:td:
New aircraft cannot get here soon enough!
It's the company that runs them, not the aircraft. I get on much older DC9s operated by NW that are in far better condition.
jerseyfinn
Oct 9, 07, 2:55 am
. . . Coach, until a year ago when they squeezed the rows together, was the best across the Atlantic. Envoy won awards and rave reviews . . .
The only distingushing feature of the US coach TA product was and remains the seatback IFEs. This makes the TA flight a decent ride. Otherwise seat pitch is the same 31 inches it's always been ( though the first 20 or so rows of coach offer a bit more leg room ). We always felt that the veteran FAs on these routes most usually did the job quite well, making for a nice trip. Otherwise US TA is a seat just like any other carrier.
Envoy has always been an interesting product. Envoy is not a F product, it's a business seat with quasi F service -- something lots of folks could live with. The seats offer excellent recline and I've always been satisfied simply being able to get some zzz's on the way over. IMO it's worked fine within its limitations.
But poor maintainance turns the entire cabin, Envoy and coach, into a mess. The IFE system frequently hiccoughs requiring reboots. Up in Envoy, you'll always encounter an IFE which doesn't work and glitches with the auto seat mechanisms ( I myself get very annoyed when the foot rest gatch does not work ). Throw in the occassional oven that doesn't work and you're flying a mediocre product.
The real question is will Tempe take care of their new planes any better than they manage things now?
When Tempe took away (lower) seasonal pricing for Envoy and stuck a year round higher price tag on the seats without cleaning up their act, they lose many elites who find alternative TA carriers. We've bought an occassional Z fare to play the game and have had disappointment with non-functioning IFEs and other seat issues. Tempe is wholly focused upon the revenue side of the game. It's been my own observation flying Envoy that many first-time European flyers ( who have bought their seat ) are wholly underwhelmed by US and simply make a mental note not to make this mistake again. Cheap and shoddy has a slow, but cumulative effect. I doubt that Tempe's hot shots even consider this as they have their own vision of reality.
I welcome new planes, but consider recent past history with Tempe -- choosing cramming seats into coach over creating a two-tier coach/coach premium product or simply improving pitch or leg room to make a distinct TA product. My own view is that after a couple of years of flying, expect the same dirty cabins and broken seats as mech issues grow and operations stretched too thin create a cascading effect of mechanical issues which degrade the pax experience ( as this year's TA high season has demonstrated to many stranded/late-arriving flyers ).
New planes do not a great or good airline make. It's about management which is engaged fully in the product and respects its pax. And oh yeah, it especially helps if that management has character and integrity.
US is making a push in the right direction, but without managers who get it, US will simply be one of many TA carriers competing in an uncertain market. And when bad times hit, that's when the well-run companies will hold on while others languish. And with Open Skies coming, new alternatives will indeed pop up. Somebody is gonna figure out the balance of product and price.
Barry
crunchie
Oct 9, 07, 9:08 am
...
I welcome new planes, but consider recent past history with Tempe -- choosing cramming seats into coach over creating a two-tier coach/coach premium product or simply improving pitch or leg room to make a distinct TA product. My own view is that after a couple of years of flying, expect the same dirty cabins and broken seats as mech issues grow and operations stretched too thin create a cascading effect of mechanical issues which degrade the pax experience ( as this year's TA high season has demonstrated to many stranded/late-arriving flyers ).
New planes do not a great or good airline make. It's about management which is engaged fully in the product and respects its pax. And oh yeah, it especially helps if that management has character and integrity.
...
Barry
You mean like how SQ is putting in 471 seats in their first A380, almost a 100 short of the "typical" configuration with 555 seats? Taking care of customers, keeping things in good order, man, you're gonna be asking for duvets and a tuck in next. :)
Said it before, by the time US feels the backlash from customers (especially corporate ones that provide predictable rev and are a little less price sensitive), DP and the current management team couldn't care less since they've already made their millions.
PHL
Oct 9, 07, 11:14 am
Otherwise seat pitch is the same 31 inches it's always been ( though the first 20 or so rows of coach offer a bit more leg room ).
The Y cabin was completely squeezed tighter after the Envoy rows 6-7 were removed. Prior to that, the whole coach cabin, front and back, had 33-34" throughout.
alanh
Oct 9, 07, 11:25 pm
Classic Boeing 737-300/400s will be eliminated from the fleet as the A320s are delivered. The narrow-body fleet count is expected to remain stable.The big hole in Airbus' lineup is the lack of a 757 replacement. The A321 nearly has the seats, but the range is lacking. So I'll expect the 757s to hang around for a while.
N830MH
Oct 10, 07, 11:25 pm
Actually, A321's will start being delivered next year.
Jim
Right. US will even accepted delivery of A321 is coming online around 2008. I'm sure which specifically routes will even taken from PHL, CLT, PHX, LAS? :confused:
SS255
Oct 11, 07, 10:43 am
The big hole in Airbus' lineup is the lack of a 757 replacement. The A321 nearly has the seats, but the range is lacking. So I'll expect the 757s to hang around for a while.
So? You can shove more seats in a 321 than on a 757. They can always stop for fuel en route. No biggie. :D
crunchie
Oct 11, 07, 6:12 pm
So? You can shove more seats in a 321 than on a 757. They can always stop for fuel en route. No biggie. :D
Silly SS255. Have you learned nothing about DP? Stop for fuel? You know how expensive take-offs/landings are not to mention airport taxes?
DP will probably put in more seats and sell "executive economy" seats where passengers get to sit under 5 gallon tanks of jet fuel. Only 10% surcharge on top of your ticket or 15000 miles for the chance to sniff the fumes; it's a new high in the sky program. CPs can pick those seats at no extra charge 24hours before departure.