qqflyboy
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Joined: Sat Oct 25, 2003 1:47 pm

AA 777/738 Delivery Schedule

Sat Oct 09, 2004 6:41 am

A couple of weeks ago I mentioned I would ask for an update on AA's delivery schedule for the remaining 777s and 738s. I received this information today via e-mail from the folks in the employee "Questions and Answers" department.

"The current plan has American taking delivery of 47 B737s at the rate of 1 per month starting in January 2006 and ending November 2009. We also plan on taking 9 B777s, the first one in February 2006 and the remaining eight at a rate of two per year in 2007 through 2010."

So the gist is AA will take delivery of 56 airplanes in the next five years.
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aa777flyer
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 8:07 am

I find it hard to believe AA would be spending billions of dollars on taking new airplanes when they are having such a difficult time getting on their feet. This seems very odd to me. If I were still employed I would be very upset at management for this. I am sure AA could have cancelled/deferred these deliveries if they really wanted to.
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Thrust
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 8:14 am

AA doesn't have very many 777s left on order, (N767AN, N768AN, N769AN, N763AN, N764AN), so I seriously doubt AA will defy delivery of these, especially since it will be starting ORD-Shanghai and ORD-HKG soon. Is there a possibility AA would add winglets to their 738s still on order?
Fly one thing; Fly it well
 
PSU.DTW.SCE
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 8:19 am

AA has done a pretty good job of deffering as many orders for as long as they could.

Right after 9/11, AA worked out a deal to defer all 738 and 777 orders from 2002-2006. They were unable to defer the remaining 757's on order and the the 763's and 2 777's delivered in 2003. Remember Boeing is in business to and can't just drop everyone's orders or else they'd be out of business too. When these aircraft were deffered, AA had no idea that the would be in the position they are in currently. They thought the turnaround was going to be well underway.
 
aa777flyer
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 8:43 am

Dont know about the winglets on the 738's. I doubt it though. I must admit they would look awesome!
The TSA was created to make the post office look efficient!
 
aa777jr
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 8:53 am

Thrust,

Qqflyboy was contacted by AA. I think what AA says is the best bet. I'm glad they are taking delivery of the remainder of the planes they orderd. Way to go AA. Would really like to see those T7 roll in quicker though and see AA go after some more Asian routes.

Wishful thinking,
AA777jr
A liberal is a man who is right most of the time, but he's right too soon.
 
qqflyboy
Posts: 1615
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 9:39 am

AA deferred these aircraft to the max. Some of these orders go back to 1998. As PSU stated, AA deferred as many deliveries as they could. This delivery schedule I posted reflects those deferalls. Now, it isn't beyond the realm of possibilities that AA will attempt to defer some or all of these even further, but as Thrust said, I would highly expect them to take delivery of at least a few 777s for their long wanted Asia expansion, especially if they are granted access to China.

FYI, the last order AA placed was for seven 777s and four 738s on December 31, 2001.
The views expressed are mine alone and do not necessarily reflect my employer’s views.
 
qqflyboy
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RE: AA 777/738 Delivery Schedule

Sat Oct 09, 2004 9:49 am

Also... the question has come up several times regarding winglets on the 738s. Recently, someone else wrote to the "Questions and Answers" folks, and, as we've been told in the past, AA is "evaluating" whether or not the economics make it feasible.

AA has explored winglets on at least two other occassions and decided against them, but this time, they stated the record high fuel costs were the trigger to evaluate them once again. Perhaps this time it will show a cost savings. No update yet, though, on what, if anything, they've determined. I will let you all know when we hear more.
The views expressed are mine alone and do not necessarily reflect my employer’s views.
 
LMP737
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RE: AA 777/738 Delivery Schedule

Sun Oct 10, 2004 4:44 am

AA777flyer:

Those deliveries in 2006 are the ones that AA defered several years ago.
Never take financial advice from co-workers.
 
ckfred
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RE: AA 777/738 Delivery Schedule

Sun Oct 10, 2004 4:47 am

I read in the Chicago Tribune that AA has 2 concerns about winglets on the 737. First, there is the extra cost of installing and maintaining them. With oil at over $50 a barrel, the fuel savings may justify the cost. Second, the winglets add 5 feet to the wingspan, which cuts down on the number of gates at which a 737 can park.

I don't know the wingspan of the MD-80, but the 727's wingspan was 108 feet, while a 737 without winglets is 112 feet. So a 737 can, for the most part, use any gate that a 727 could use. So five feet can make a difference.
 
DfwRevolution
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RE: AA 777/738 Delivery Schedule

Sun Oct 10, 2004 5:01 am

I find it hard to believe AA would be spending billions of dollars on taking new airplanes when they are having such a difficult time getting on their feet. I am sure AA could have cancelled/deferred these deliveries if they really wanted to.

They don't really want to cancel or defer them.

AA has already contracted these airplanes, breaching the contract would lead to a stiff penalty. AA is gradually becoming a healthy airline when you look at their current conditions: they can post small quarterly profits at a time when fuel cost $50 a barrel. Oil will never be dirt cheap again, but even these prices will not last for ever.

By 2007, AA will likely be in sound financial condition, and if the market suddenly rebounded, they couldn't instantly look for an aircraft. You must predict when the market will grow and schedule deliveries for this time, years in advance.
 
AAR90
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RE: AA 777/738 Delivery Schedule

Sun Oct 10, 2004 12:08 pm

If I were still employed I would be very upset at management for this. I am sure AA could have cancelled/deferred these deliveries if they really wanted to.

Management could cancel or defer these deliveries, but at significant financial penalties with no gain to AA's operations. By taking these deliveries the higher purchase costs is relatively minor (compared to penalties) while the operating costs of the newer planes can have a significant impact on AA's profitability.

AA has explored winglets on at least two other occassions and decided against them, but this time, they stated the record high fuel costs were the trigger to evaluate them once again. Perhaps this time it will show a cost savings. No update yet, though, on what, if anything, they've determined.

Very strong rumor within the 737 fleet that all new deliveries will have winglets. High probability of retrofitting the existing fleet as well, but only if the new delivery rumor holds true (standardization issues).

AA's overall financial position can best be viewed from the outside (all of us non-AA senior management folks) by observing AA senior management activities. In the not so distant past senior management spent all their effort trying to squeeze as much efficiency as possible from the operation while hoarding its cash (now $4B) trying to survive "day-to-day." Today management is looking farther ahead (years instead of days) and is more willing to spend (relatively) small amounts of money to squeeze larger amounts of savings (efficiency)... i.e. closing SFO/ORD 737 crew bases is not cheap. The fact that management is looking ahead and is willing to invest in the airline are the strongest indicators that AA truly is "on the mend."
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