AMR Corp. (AMR)’s American Airlines, the operator of
an all-Boeing Co. (BA) jet fleet, is in talks with Airbus
SAS about buying at least 100 narrow-body planes,
two people familiar with the matter said.
A decision by the board of the third-largest U.S. carrier
may come as soon as July, said one of the people, who
asked not to be identified because the discussions
aren’t public. The jets from Airbus’s A320 series would
replace less-efficient aircraft such as Boeing 757s and
MD-80s, the people said.
By: nJayM - 28th June 2011 at 07:43
Here are some pre Paris Air Show facts
Here are some pre Paris Air Show facts and news report
Fleet profile for AA
http://www.aa.com/i18n/amrcorp/corporateInformation/facts/fleet.jsp
Of their total fleet of 619, 124 are Boeing 757 and 247 are MD80 that makes 371 possibly for replacement/renewal/refurbishment (B 757s).
100 A320NEO s is less than a third of the total of 371 unless it excludes the replacement of Boeing 757s and purely are replacements for half the MD80s
“An Inside Look at American Airline’s Fleet Renewal Plan“
http://www.reuters.com/article/2011/06/02/idUS124695115620110602
“…..American plans to retire at least 25 MD-80s in 2011 and it is not exactly known when all MD-80s will be out of service. American will receive an additional 54 Boeing 737s with Sky Interior over the next two years
“…The airline plans to upgrade their older 737s to have newer seating and larger bins. In May 2010, American began updating its existing fleet of Boeing 737s. The retrofit includes the installation of new seats, new cabin interiors, updated in-flight entertainment systems and more storage throughout the aircraft. The retrofit is slated for completion by the first quarter of 2013. ….”
“…is also in the process of updating all Boeing 757s …The 757 aircraft enhancements began in August 2010 and have a planned completion of December 2015. As of early May 2011, American has completed upgrades to ten 757s….”
Interesting A320NEOs projected date is 2015.
“…will also be increasing their fleet of Boeing 777s with the addition of five 777-300ERs with deliveries slated for 2012 and 2013….”
I personally have faith that like many airlines the move towards Airbus may either be to encourage better deal making towards AA by Boeing or simply wishing to go for a strategy of not ‘putting all their eggs in one basket’.
That does not make AA anti Boeing and I can wait for Q3 post 787 delivery announcements on Boeing’s take on a likely competitor or comeback on the A320NEO.
At present in a damp UK June (in Edinburgh anyway), we are simmering under the only ‘rays of sunshine’ from the Paris Air Show care of Airbus. Civil aviation profits hype alone doesn’t make Boeing survive but instead their diverse cash flow from multiple aerospace sectors. The civil aviation cash flow for Boeing should pick up in 2012 with post 787 deliveries commencing Q3 2011.
By: ThreeSpool - 27th June 2011 at 21:06
Quite a lot of the orders have come from the west, ALC, ILFC, GECAS, CIT Aerospace, Virgin, Thomas Cook, JetBlue, and Republic.
By: tenthije - 27th June 2011 at 14:33
Deduct the orders from carriers in booming markets (India, China, Middle-East) and then see how much you’ve got left. I have not been keeping close watch on the orders, but I don’t think there are any mayor orders from the big American and European carriers.
By: ThreeSpool - 27th June 2011 at 12:22
Even in the financial boom times airlines where considered a bad investment, how do you think airlines are regarded now?
Can’t be that bad getting the investment, look at the size of the orders at PAS11. 😀
By: tenthije - 27th June 2011 at 11:46
Certainly the unions can put pressure on them through scope clause negotiations etc. But they are far from the biggest hurdle to take. At the end of the day it’s also in the union’s interest that AA gets more planes, as it will require staff to operate them, some of which may join the union.
The biggest hurdle is more likely to be banks. The times that banks lend out money easily are over. Even in the financial boom times airlines where considered a bad investment, how do you think airlines are regarded now?
By: ThreeSpool - 27th June 2011 at 10:44
They can’t stop them from ordering, but I am sure they would be a lot more difficult if they did.
By: tenthije - 26th June 2011 at 19:30
Never let the truth get in the way of a good grudge! 😀
By: Amiga500 - 26th June 2011 at 18:38
The biggest issue on the acquisition it not something John Leahy can control, and that’s the Unions.
Can they dictate what aircraft an airline purchases? :confused:
By: ThreeSpool - 24th June 2011 at 15:18
I can’t believe this topic isn’t being discussed more, this would be an epic order and such a win for Airbus. Certainly, it’s on par with the first orders by United Air Lines and Northwest Airlines for A320s.
The biggest issue on the acquisition it not something John Leahy can control, and that’s the Unions.
By: J Boyle - 23rd June 2011 at 08:41
Obviously it would have to offer:
1. Great operational economy
2. A great purchase/lease or financing deal
for them to give up any commonanality with their other Boeing types.
Remember, publicly traded non-flag carrier airlines make decisions based on the “bottom line” not politics.
By: Bmused55 - 23rd June 2011 at 07:54
Certainly a rather interesting development.
By: KabirT - 22nd June 2011 at 22:59
I personally think it could be a ploy to get them a better deal on the 739ER but it is also possible the NEO is a better option than the 739 at the moment. If AA do go for it, it will be a big setback to Boeing.
By: tenthije - 22nd June 2011 at 22:38
That would be a very big blow to Boeing and a very big victory for Airbus! Would AA be serious in their A320NEO aspirations, or is this a negotiation ploy to get more favourable terms on the 737, or a potential succesor from Boeing.
If AA does go for the A320NEO, then Boeing will have to realise the current 737s can’t cope. A completely new design, or at least a mayor update of the current 737, will likely be announced not much after AA announces any order for A320s.
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June 22, 2011 at 10:25 pm