SEPilot From United States of America, joined Dec 2006, 6634 posts, RR: 46
Reply 1, posted (7 years 2 weeks 2 days 13 hours ago) and read 5350 times:
Being the only legacy carrier not to have traipsed through bankruptcy since 9/11, this is hardly surprising. I sincerely hope they can manage it; but I offer one suggestion: Don't ask Warren Buffett for help.
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
Ripcordd From United States of America, joined Apr 2000, 1119 posts, RR: 1
Reply 4, posted (7 years 2 weeks 2 days 13 hours ago) and read 5178 times:
Well this is the order everyone has been looking for did boeing annouce a new 737RS? I would imange that they would order 350 737 RS and be the launch for this plane along with a 787 order of around 75 with options for 400 more
DAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 5, posted (7 years 2 weeks 2 days 10 hours ago) and read 4863 times:
With the potential of the largest aircraft order in history, I bet you that Boeing will do everything possible to make the replacement of the AA fleet as painless as possible, including backdoor help with financing. It really would be very foolish of them not to do so.
Xpfg From United States of America, joined Oct 2003, 633 posts, RR: 7
Reply 6, posted (7 years 2 weeks 2 days 8 hours ago) and read 4601 times:
This should be interesting.. Boeing can not ignore the needs of a couple of its most important customers. AA SW. AA needs to replace the 300 mad dogs in the fleet and wants to do so with the next generation of aircraft in the 737 sized bracket. SW will not need to make another large order for another couple years but when they do it will be in the 200 to 300 aircraft range. (initial 737-300 replacement) And then another order a few years later for the 737-700 replacement.
My best guess is that AA will exercise the options (i think they still have) on 737-800 aircraft and couple it with an order for 787's. Than put a deposit on early delivery slots for the NGNG 737 or whatever they call it. This way they can begin the process of retiring the eldest MD 80 aircraft and have replacements on order. How many 787 could AA be in the market for? How many A-300, 767 sized aircraft do they need to replace. AA can not wait much longer....
KC135TopBoom From United States of America, joined Jan 2005, 12019 posts, RR: 52
Reply 10, posted (7 years 2 weeks 2 days 6 hours ago) and read 4230 times:
Quoting BigGSFO (Reply 7): Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots. Coincidence? Hmmmmmm.....
No, you are right, and the pilots remember how the top AMR excutives got about $250M in bonuses last year. This is going to be a hard contract talk. After the pilots are the machinest and FA unions. I doubt AA will order anything until after these contracts are signed.
Madhatter From United Kingdom, joined Jan 2001, 242 posts, RR: 0
Reply 13, posted (7 years 2 weeks 2 days 4 hours ago) and read 4011 times:
Granted $16 billion in debt is one heck of an amount to get rid of but BA has managed to get rid of around £7 billion since 2000 I think? Correct me if Im wrong. Now OK they havent placed an order but they are now in a position this year to finally to do so having removed this huge debt. AA must have some way of overcoming their debt. Are their MD80s owned or leased? Maybe selling them and leasing them back could release quite a bit of equity to allow them to order some replacement aircraft and begin to make inroads on their debt. Another suggestion may be a public offering of new shares in the company though this needs to be assessed carefully and not be made if the shares are already viewed as being below market value. Just two suggestions of maybe increasing funds in the short term to possibly recoup in the long run. A further thing may be to get the stored MD80s out from their desert homes and place them into revenue service (if profit is assured) so that more revenue can be gained this way. Im sure there is quite a few option that can be made.
They have stopped the bleeding and have turned a profit. Also their TUL Base is turning even more profits by doing checks on other airlines MD-80's. Its a catch 22 you have to spend the money for new planes so your gas hogs and can be put down and save you money that way so they must have figured it would save more money to buy new planes
SkyyMaster From , joined Dec 1969, posts, RR:
Reply 18, posted (7 years 2 weeks 1 day 16 hours ago) and read 1983 times:
Quoting XJET (Reply 12): Quoting BigGSFO (Reply 7):
Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots. Coincidence? Hmmmmmm.....
I don't think this is ever a coincidence! Good call on that.
I think when it comes to AA dealing with pilots, I agree - nothing is ever by coincidence. If they don't make an amicable settlement next negotiating round, AA is going to see itself losing more lucrative international routes as it did the China award because of the beef by the pilots. They seem to have the most radical union of all the legacies, and it's going to eventually bite them in the ass.
Galapagapop From United States of America, joined Feb 2005, 910 posts, RR: 4
Reply 19, posted (7 years 2 weeks 1 day 14 hours ago) and read 1686 times:
Quoting JAAlbert (Reply 9): $16 billion dollars in debt? Man, how does a company ever hope to pay a sum like that off? That's like the debt load of a small country!
Think of it more like the national debt. The balance may real -16bil but it's really not that much, most of it liabilities on pensions, maturing loans and so forth. Day to day AA has been profitable as of late, including loan repayments.
AA1818 From Trinidad and Tobago, joined Feb 2006, 3403 posts, RR: 4
Reply 21, posted (7 years 2 weeks 1 day 14 hours ago) and read 1656 times:
Don't most airlines require financing for a/c anyways?? Surely not many airlines pay 'cash' for an a/c??!!
Good luck AA and Boeing!! I'm looking for some 787s -8s and -9s and possibly -10Xs (if it#s launched). Also, I know Boeing's 737RS is the obvious replacement, but it'll take a while to replace almost 400 narrowbodies with it, so surely ordering some 737NGs for the time being will be worth while to replace at least some MD80s. A replacement will probbaly be about 8 years away anyways and then it'll take at least 5-6 years to refleet AA so that's a good 13 years of service, and surely there would be some commonality so AA could operate them side by side for a few years. The question is- WHAT WILL REPLACE THE 752s?????
AA1818 From Trinidad and Tobago, joined Feb 2006, 3403 posts, RR: 4
Reply 23, posted (7 years 2 weeks 1 day 7 hours ago) and read 1418 times:
Quoting BigGSFO (Reply 22): Agreed. Would the 739 make a logical choice? The 757 is such a workhorse and has excellent performance.
The 739 could replace the 752 on some routes. But not routes to the Caribbean where the cargo capacity of the 752s is used to the MAXIMUM. Also AA probably couldn't send the 739s across the pond as efficiently as it can use 752s!!!