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Joined: Wed May 19, 1999 10:42 pm

AA Returning MD-90's

Wed May 10, 2000 9:56 am

American Airlines ordered 20 757-200 for mid 2001 deliveries. They also going to trade-in five ex-Reno Air MD-90's to Boeing and retire five ex-Reno Air MD-87's.
I dont understand what is trade-in, they will get Boeings 757 cheaper? And also, why they geting rid of MD-87s? they dont have money to maintain them or what?

BWIADCA - Nikon D100

RE: AA Returning MD-90's

Wed May 10, 2000 10:26 am

The concept of "trade-in" is pretty simple Lindy. Say you want to buy a new car but you don't have or don't want to pay all that money to afford it. And say the car salesman really wants to sell some cars (he needs to sell cars to make money after all). The solution is that the car dealership pays you money to buy your old car (used piece of junk for example), in exchange for which you buy a nice fancy new car from the dealer. Everybody's happy---you were able to afford a nice new car, you got rid of your old car, and the dealer is happy because he got rid of the new car and made some money.

As for the MD87's...they are too small and they are not 100% parts compatible with the rest of the MD82/83's. Either get rid of 260 MD83's or get rid of 5 MD87's. You decide. 
Posts: 2728
Joined: Sun Apr 23, 2000 6:02 pm

RE: AA Returning MD-90's

Fri May 12, 2000 3:13 pm

What American is doing is not surprising, it is merely a result of the need to homogenise their fleet. Reno Air had a large number of MD80s which proved easy to merge into American's 259-strong Mad Dogs (one was written off in Little Rock last year). The MD87s, however, have somewhat different features, especially the shortened fuselage while the MD90s have different engines. A transition to the 757 is thus quite appropriate as the transition period immediately post-merger has been more or less successful.

The MD87 sold only 75 though, it would be sad to see those 5 bite the dust altogether. Perhaps another large MD87 flyer such as Iberia or SAS could buy them (but SAS have 736s now...)

Hop to it, fly for life!