Originally Posted by
kebosabi
I wonder where they got the funding though? Last I heard, MD-80s weren't to be retired until the end of this decade. It's not like AA's doing too well in its own revenue stream.
Plenty of lenders are willing to finance the purchase of new fuel efficient airplanes. At current fuel prices, the fuel savings from replacing an MD-80 with a new 738 is enough to make the payments on the new 738. Throw in the maintenance savings (from a new, under warranty plane) and the payback period is relatively short.
Of course, if fuel drops back to $1/gal from the current $3/gal, that changes everything. Then, owners of old, paid-for DC-9s would thrive and those saddled with new plane payments would eventually find themselves in Ch 11.