3Q Profit & Winglets on 733s/735s

 
Old Oct 19, 06, 8:23 am
  #1  
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3Q Profit & Winglets on 733s/735s

This is a long one, so link only:

http://www.continental.com/web/en-US....aspx?i=PRNEWS

Nice job to the entire CO team on the profit & interesting news about the winglets on older aircraft:

Continental continues to enhance its fuel efficient fleet. Today the company announced that it has signed an agreement to acquire winglets for 37 of its 737-500 and 11 of its long-range 737-300 aircraft, with installation beginning in 2007. The company has already completed the installation of winglets on its entire fleet of 737-700s and -800s and plans to finish the installation of winglets on its entire 757-200 fleet in the fourth quarter of 2006. When these installations are complete, Continental will operate 230 narrowbody aircraft outfitted with winglets. Winglets lower drag and improve aerodynamic efficiency, which can reduce fuel consumption by up to five percent.

By year-end, the company expects to have improved fuel efficiency by nearly 25 percent per available seat mile as compared to 1998, as a result of several factors, including fleet modernization, improved operating procedures and implementation of fuel-saving technology like winglets and GE90 3D Aero blades.
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Old Oct 19, 06, 9:11 am
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Hmmm....

I know several on this board want to see the 735s go away, but I think this is a sign they'll be around for awhile.....and I think it's actually a good sign.

Several had surmised that when the new deliveries came online in '08 and '09 they'd be parking the 735s and possibly some 733s..... I guess they still could, but this is certainly a sign that they intend to keep these aircraft in service and continue to grow the airline......which of course is a good thing.

I delivered a 757 to Greensboro last week for the winglet installation, and it's a pretty fascinating operation. The aircraft is out of service for 16 days while they modify the structural innards of the wing. 737s are actually designed for the winglet a bit better, so it's a lot faster mod.

In any event, I see this as good news, that the fleet will continue to grow.....

DRW
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Old Oct 19, 06, 9:14 am
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Well, there is a possibility that the addition of winglets will provide a short term improvement on fuel efficiency and a medium to long term improvement on "resale value." It will be much easier to get rid of this equipment when the winglets are already installed.
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Old Oct 19, 06, 9:36 am
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37 735s....
they will keep some of them, but not all
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Old Oct 19, 06, 10:02 am
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FWIW, I hate the 735s.
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Old Oct 19, 06, 5:15 pm
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Originally Posted by CO 1E
FWIW, I hate the 735s.
What's wrong with them? What's the equivalent on AA? 757?

AA's 738s are pretty nice.
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Old Oct 19, 06, 5:39 pm
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How much of COs profit this year comes from sale of Copa shares?
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Old Oct 19, 06, 6:11 pm
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Originally Posted by tommy777
How much of COs profit this year comes from sale of Copa shares?
From the press release:

Continental Airlines (NYSE: CAL) today reported third quarter 2006 net income of $237 million ($2.17 diluted earnings per share), which includes a $92 million gain on the sale of a portion of the company's investment in Copa Airlines. Excluding net special charges of $1 million and the $92 million Copa gain, Continental recorded net income of $146 million ($1.36 diluted earnings per share).
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Old Oct 19, 06, 8:14 pm
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Originally Posted by doobierw
Hmmm....

I know several on this board want to see the 735s go away, but I think this is a sign they'll be around for awhile.....and I think it's actually a good sign.

Several had surmised that when the new deliveries came online in '08 and '09 they'd be parking the 735s and possibly some 733s..... I guess they still could, but this is certainly a sign that they intend to keep these aircraft in service and continue to grow the airline......which of course is a good thing.

I delivered a 757 to Greensboro last week for the winglet installation, and it's a pretty fascinating operation. The aircraft is out of service for 16 days while they modify the structural innards of the wing. 737s are actually designed for the winglet a bit better, so it's a lot faster mod.

In any event, I see this as good news, that the fleet will continue to grow.....

DRW
As I guy who has been on CO at least twice a week for almost every week of my life the past 7 years I've been a Plat and the past 12 I've been a OP member, I am proud to buy CAL shares. Way to go CAL!
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Old Oct 19, 06, 8:50 pm
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Are the 11 733s the group of 733s with more advanced cockpits and IFE?
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Old Oct 19, 06, 10:06 pm
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Originally Posted by ssullivan
Are the 11 733s the group of 733s with more advanced cockpits and IFE?
Ummm.....I shouted that question at a 737 bubba here at our apartment, and his answer was something along the lines of: "Maybe those are the 300's that have the additional fuel tanks..."

To which I referenced a document which displays configurations and side numbers. There are approx. 14 733s designated as 73R which have additional range and a video system annotated on the configuration.

Can't verify that those are the aircraft, but in the Conference Call they did specify they were adding the winglets to 11 of the 733 long range aircraft.

DRW
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Old Oct 19, 06, 10:22 pm
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Originally Posted by capitalflow
As I guy who has been on CO at least twice a week for almost every week of my life the past 7 years I've been a Plat and the past 12 I've been a OP member, I am proud to buy CAL shares. Way to go CAL!

I admire your courage if you're buying shares in CAL right now! IMHO, it seems to be pretty fairly valued right now. It looks like you're buying what I'm selling!
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