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American Airlines Places Order for 460 Narrowbody Planes from Boeing & Airbus

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American Airlines Places Order for 460 Narrowbody Planes from Boeing & Airbus

 
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Old Jul 20, 2011, 9:14 am
  #76  
 
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Just adding an article by a colleague who is attending the announcement now:

American Airlines Announces Record Jet Order with Airbus and Boeing
By Paul Riegler

At a press conference in Dallas, American Airlines announced it will order 200 737 aircraft and 260 Airbus A320 aircraft and will take delivery over the course of the next five years. The new aircraft will give American the industry’s newest and most fuel efficient fleet and will make American the first U.S. network carrier to put the Airbus A320neo family of aircraft into service. American will also be the first to commit to Boeing’s planned new 737 family of offerings.

American will replace four fleet types, namely the MD-80, 737-800, …
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Old Jul 20, 2011, 9:15 am
  #77  
 
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It's too bad that most of what is being posted here is negative commentary about a historic and momentous decision that AA has made, which (along with a few more) will significantly increase AA's ability to compete with DL and UA on its own domestically, and with foreign carriers abroad.

If AA uses the new fleet properly, they'll be able to improve their financial performance, and if they use vision, they can configure the planes to be better than anything currently in service.

I am personally pleased that AA chose to buy B and A frames to replace the old gas guzzlers as quickly as possible for 2 main reasons.

1) It makes AA more financially viable in the long term, which should indicate that A is now less likely to go into Ch 11 or even worse, Ch 7.

2) With this fleet renewal and theoretical financial performance improvements, AA has more viability as a stand-alone carrier, which means that my beloved AAdvantage program has a chance of remaining the most rewarding of the legacy programs.

As far as the Airbi are concerned, I find them to be excellent aircraft. I have flown them countless times on LH, BA, AF and other airlines, and I have found the cabin to be quiet and comfortable. If AA's cabin comfort is not up to par, it's likely because of the configuration, not the aircraft.

As always, my 2 cents, YMMV.
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Old Jul 20, 2011, 9:15 am
  #78  
 
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Originally Posted by Northshore Bob
What ARE those strange buzzing, whirring and thumping noises?
Answer can be found:
http://www.flyertalk.com/forum/us-ai...us-sounds.html

Originally Posted by flyingcat
The seal noise is one hydraulic system equalizing with another, you hear the noise decrease as the last engine spools down.

The other noise is the cargo bin doors opening.
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Old Jul 20, 2011, 9:20 am
  #79  
 
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I just hope they don't provide the inter-European "premium" cabin configuration in the Airbuses (hey, look, we left the middle seat empty, enjoy!)

I do wonder why the 787 Dreamliner order was not commented on in conjunction with this order in so far as replacement of the 757 and 767 fleets? I can't imagine a 3 cabin configuration on the popular transcons in either a 737 or a 320..
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Old Jul 20, 2011, 9:26 am
  #80  
 
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White fuselage?

I just saw the promotional video during their press conference and it showed the Airbuses with a white fuselage instead of the polished metal . . . think this is just a video short cut?
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Old Jul 20, 2011, 9:27 am
  #81  
 
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Crow, anyone?

What an interesting story this is. And what a vindication for the FTer who posted about this way back around the time of the airshow and was essentially ridiculed by a big handful of folks here and elsewhere.
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Old Jul 20, 2011, 9:29 am
  #82  
 
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American desperately needed to upgrade its fleet to get fuel costs under control and provide a more up to date product. But their financial position made it impossible for them to do it conventionally. John Leahy of Airbus lives to make deals like this happen and I'm sure the Airbus sales team walked over hot coals to hell and back to get the financing in place to get it done. Sounds like American could NOT refuse this offer and only the legacy of the business relationship they had with Boeing over the years allowed them a chance to present an offer.

Having said that I'm going to truly miss the the 767s on the JFK->LAX/SFO runs.
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Old Jul 20, 2011, 9:29 am
  #83  
 
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Originally Posted by AAExPlat
It's too bad that most of what is being posted here is negative commentary about a historic and momentous decision that AA has made, which (along with a few more) will significantly increase AA's ability to compete with DL and UA on its own domestically, and with foreign carriers abroad.

If AA uses the new fleet properly, they'll be able to improve their financial performance, and if they use vision, they can configure the planes to be better than anything currently in service.

I am personally pleased that AA chose to buy B and A frames to replace the old gas guzzlers as quickly as possible for 2 main reasons.

1) It makes AA more financially viable in the long term, which should indicate that A is now less likely to go into Ch 11 or even worse, Ch 7.

2) With this fleet renewal and theoretical financial performance improvements, AA has more viability as a stand-alone carrier, which means that my beloved AAdvantage program has a chance of remaining the most rewarding of the legacy programs.
It's not a given that this will improve their performance - it seems to be laregly a bet on the cost of oil. The cost they're paying for this is enormous lease payments which could well bite them in the butt if circumstances change, just as they bit UA. One of the weird things is AA avoided Chapter 11 in 2002/3 in part because they had more owned aircraft than the other carriers and more flexibility to change the fleet.
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Old Jul 20, 2011, 9:31 am
  #84  
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I am thrilled for AA but find myself wondering if AA really has the cash for this purchasing. I seem to recall that AA is coming out of the fiscal year posting $1 billion in losses?
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Old Jul 20, 2011, 9:33 am
  #85  
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Originally Posted by dittymau
This is good news for the traveling public, I hope with the new planes you can restore the service to SJC and reopen the Admirals Club there!

dittymau
Not only restore the SJC hub, but these new planes would enable AA to build up BOS and SFO once again.

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Old Jul 20, 2011, 9:34 am
  #86  
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Originally Posted by ESpen36
I am thrilled for AA but find myself wondering if AA really has the cash for this purchasing. I seem to recall that AA is coming out of the fiscal year posting $1 billion in losses?
AA has found financing for the new planes, which has nothing to do with its GAAP losses of recent years. Perhaps a colleague who teaches corporate finance could explain it in detail?
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Old Jul 20, 2011, 9:35 am
  #87  
 
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Originally Posted by ESpen36
I am thrilled for AA but find myself wondering if AA really has the cash for this purchasing. I seem to recall that AA is coming out of the fiscal year posting $1 billion in losses?
Will AA have to pay any percentage of the lease cost up front? Is it refundable, and can it be counted in the "cash" required for their various covenants? The first delivery seems to be 2 years off and a lot can happen in that time.
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Old Jul 20, 2011, 9:38 am
  #88  
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757/existing 737 Domestic Refurb Will Still Occur

Confirmed now that the 757 (and older 737s) domestic refurb will still occur. ^^

I think this is the first we've heard of a 737 refurb.
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Old Jul 20, 2011, 9:40 am
  #89  
 
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I wonder whether they'll be 100% Gogo equipped (also wonder how much it costs to rip the system out of an MD80 and put it in a new ride).
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Old Jul 20, 2011, 9:40 am
  #90  
 
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Originally Posted by bernardd
Will AA have to pay any percentage of the lease cost up front? Is it refundable, and can it be counted in the "cash" required for their various covenants? The first delivery seems to be 2 years off and a lot can happen in that time.
Given the likely inevitable delays in the 320neo entry into service, and Boeing's likely similar delivery, perhaps with delivery penalties and everything else these will be very inexpensive aircraft.
rowingman is offline  


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