KKMolokai
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AA 757 Fleet Simplification

Wed Jun 07, 2006 5:45 am

Fleet Simplifications Target $50 Million Savings

American Airlines will further simplify its fleet by returning 19 non-standard 757-200s, previously part of the TWA fleet, to their lessors between January 2007 and March 2008. Returning the former TWA 757s at the end of the natural lease terms is a smart business decision that will save money, simplify operations, and improve efficiency as American continues to forge a different path to return to and sustain profitability.

This decision simplifies American's 757 fleet by eliminating a second cabin configuration lacking important customer amenities such as new seats, oversized overhead bins, in-flight entertainment, and powerports.

The decision to return these aircraft also reduces AA's lease costs by approximately $50 million per year and removes an aircraft with less competitive cabin amenities, therefore avoiding costly interior upgrades required to match remaining 757s. Schedule plans for 2007 are still being developed.

Despite a slight industry improvement recently, there are still underperforming parts of the network and American will continue to seek opportunities to further improve performance by reducing poor performing flying. To achieve sustained profitability, reinvest in and grow the airline, American must operate its assets - airplanes, people and facilities - with greater productivity.

How much money will the company save?

The decision to return the 19 leased aircraft is expected to save $50 million in lease costs per year and will avoid adding additional debt to the balance sheet.

There are additional benefits to be gained from simplifying the fleet and reducing operating complexity. This decision is another example of American's continuous efforts to return to sustained profitability, which will benefit employees, customers and investors.

Why does this make good business sense?

In addition to saving $50 million a year and reducing debt levels, returning these aircraft at the end of the lease terms provides a unique opportunity to continue fleet and operational simplification. The former TWA 757s have several differences compared to the other 124 757s in American's fleet, which create significant complexity and drive additional operating costs.

Different seating configuration which is disruptive with aircraft substitutions
Eight exit doors versus six exit doors requiring additional qualification training
Non-AA galleys, which have different parts and components (galley carts, oven racks, etc.) and drive unique catering provisioning
Smaller overhead bins which provide less storage space, often leading to gate-check of customer bags
Lack of in-seat power-ports which is not attractive to customers
The uniqueness of these aircraft results in additional maintenance complexity These aircraft have Pratt & Whitney engines, versus Rolls Royce engines on the remaining 124 757s in our fleet. Pratt & Whitney engine maintenance is outsourced driving additional M&E and purchasing effort. These aircraft also require additional spare engines as compared to the rest of the 757 fleet.
The uniqueness of these aircraft ultimately requires a unique inventory of parts which are more difficult to source.

Will jobs be affected by this decision?

Because most of these airplanes will not be returned until later in 2007 and the 2007 operating plan is in development, it is not clear how this will affect employees.

What is the schedule for returning the aircraft?

Leases expire in 2007 and 2008. The first aircraft will be returned in January 2007 and the last in March 2008. Some maintenance work will be performed on the on the aircraft prior to the lease return.

How does this decision affect future capacity plans?

The process of building the 2007 capacity plan is just beginning. Routes flown in 2007 will depend on factors such as route profitability, state of the industry and the economy, and the ability to increase utilization as a result of simplification and other efficiency efforts. If the environment improves, American has 27 MD80s in temporary storage.

We've experienced more than 16 consecutive months of record load factors. Shouldn't we be adding flights rather than grounding or returning airplanes?

Increased load factor is good news. However, load factors alone do not tell the story. During those same 16 months, American has lost money. In 2005, our net loss for the year was $681 million, added to a first quarter 2006 loss of $92 million, for a total of $773 million - all during a time of record load factors.

By using assets more productively, AA is able to manage capacity and fly its desired schedule with fewer airplanes. Additionally, balancing capacity has allowed American to increase its unit revenue and is an important factor in improving financial results.

American recently announced the temporary storage of 27 MD80s and now is returning 19 757s. Are there more aircraft decisions on the way?

American constantly evaluates aircraft needs, which in part are dependent upon industry conditions. American added two 777 aircraft to our fleet in 2006, one delivered as recently as May.

To reinvest in and ultimately grow the airline, it is necessary to achieve sustained profitability. The Performance Leadership Initiative is our roadmap to achieving success under the Turnaround Plan. It is important that everyone is vigilant in seeking ways to reduce costs, improve productivity, and close gaps.
We are the people of American Airlines. And we know why you fly.
 
AA737-823
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 5:58 am

Quoting KKMolokai (Thread starter):
This decision simplifies American's 757 fleet by eliminating a second cabin configuration lacking important customer amenities such as new seats, oversized overhead bins, in-flight entertainment, and powerports.

Yeah, except that the seats in TWA's 757s are about a DECADE newer than the ones in American's. And oh, wait a minute... TWA has NICER drop-down LCD screens, compared to American's crappy CRTs in the asile with their colors messed up.

Way to twist reality, American.


I realize there are other reasons, of course.
But wow...
 
AAtakeMeAway
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 6:12 am

This makes me happy. Although the seats on the AA 757s are nothing special, the TW seats seam to be thinner and they really give me a backache  Sad
 
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727tiger
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 6:36 am

I will miss the mini-cabin in the rear of the ex-TWA 757s
 
roseflyer
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 7:23 am

Quoting KKMolokai (Thread starter):
This decision simplifies American's 757 fleet by eliminating a second cabin configuration lacking important customer amenities such as new seats, oversized overhead bins, in-flight entertainment, and powerports.

Umm, if only American didn't have a fleet of 757s that are worse than the TWA planes. Some of the 757s delivered around 1990 have the nasty and uncomfortable brown first class seats and economy seats that look equally bad. Carpet and wallpaper is torn. Overhead bins are small. There are no power ports, or even fully electronic controls in the armrest for the IFE.
If you have never designed an airplane part before, let the real designers do the work!
 
dc10s4ever
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 7:30 am

This news should come as no suprize. AA has long said as the leases on these airplanes come due, they will go buh-bye!
 
LMP737
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 7:36 am

Quoting AA737-823 (Reply 1):
Yeah, except that the seats in TWA's 757s are about a DECADE newer than the ones in American's. And oh, wait a minute... TWA has NICER drop-down LCD screens, compared to American's crappy CRTs in the asile with their colors messed up.

The seats in the AA's 757's are of a higher quality than the ones in the ex-TWA 757's. Returning the ex-TWA 757's makes perfect sense.
Never take financial advice from co-workers.
 
Boeing Nut
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 9:09 am

Yet one last way that AA is rubbing the memory of TWA's nose in it.
I'm not a real aeronautical engineer, I just play one on Airliners.net.
 
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ERJ170
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 9:13 am

How long do you think these aircraft are gonna be sitting around. 757 are a hot commodity right now and I wonder who is going to get them.. And what does this mean for reduced routes? Who is gonna lose out now cause they aren't going to get any new 738 to replace these MD88 or 757. Looks like more room for some B6, FL, F9, WN, SY, YX expansion!
Aiming High and going far..
 
kevoc3
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 9:20 am

DL would love to get there hands on them.
 
PSU.DTW.SCE
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 2:07 pm

I wouldn't say that DL wants them given their financial condition.

AA can backfill with the MD-80's in storage as necessary.
 
siromega
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 2:23 pm

I thought I read a thread there the other day about Fedex looking for 757s as freighters. Or something like that. But yea, the 757s will be hot commodities on the market, it wont take long before they have a new home.
 
flyibaby
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 6:27 pm

Quoting KKMolokai (Thread starter):
Smaller overhead bins which provide less storage space, often leading to gate-check of customer bags

Are you kidding me? I work on both of these types of 757s every night and the TW overheads are actually bigger!

I actually find the layout of the TW aircraft to be better than AA's 757. Look at the placement of the lavatories; it basically keeps the aircraft from becoming bottlenecked away from the main FA galleys and provides the crew with a little bit of privacy on longhaul flights. Their interiors are predominately newer than the AA's and usually have a couple of inches of legroom more than AA's. The inflight entertainment system is definately better for passengers as they don't have to twist their head up and to the side to be able to see the screens. Personally, I think AA has their head up their ass when comparing their 757s and the old TW ones.
 
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kc135topboom
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 6:47 pm

Quoting ERJ170 (Reply 8):
How long do you think these aircraft are gonna be sitting around. 757 are a hot commodity right now and I wonder who is going to get them.. And what does this mean for reduced routes? Who is gonna lose out now cause they aren't going to get any new 738 to replace these MD88 or 757. Looks like more room for some B6, FL, F9, WN, SY, YX expansion!

I doubt that B6, FL, F9, or WN are really interested in B-757s. My guess is DL and/or TZ will pick these airplanes up quickly. These are some of the newest B-757-200s avaialable anywhere.

Quoting PSU.DTW.SCE (Reply 10):
I wouldn't say that DL wants them given their financial condition.

AA can backfill with the MD-80's in storage as necessary.

DL could really use these B-757s. Yes, AA can back fill the ex TW B-757s with the ex MD-83s that are parked in the desert. But, that isn't exactly a straight mission equipment swap, now isn't it?
 Yeah sure
 
orlando666
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 7:03 pm

good economic sense, plus back-up of MD's in storage, so sounds good.

Why was this not done earlier I wonder...
 
rwylie77
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 10:07 pm

Quoting KC135TopBoom (Reply 13):
I doubt that B6, FL, F9, or WN are really interested in B-757s. My guess is DL and/or TZ will pick these airplanes up quickly. These are some of the newest B-757-200s avaialable anywhere.

I believe the point being made was that B6, FL, F9 or WN would pick up the capacity on the routes dropped or have reduced seats by AA reducing service from a 757 to MD80 or dropping the route altogether. This would make sense based on AA even saying themselves that they are filling seats at the moment...they obviously just can't move these people profitably which the LCC's can.
 
AAtakeMeAway
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 10:33 pm

Quoting Flyibaby (Reply 12):
Are you kidding me? I work on both of these types of 757s every night and the TW overheads are actually bigger!

I'm pretty sure the TW overhead bins are smaller. You can't put the bags in wheels first as you can on AA's. The flight attendants on these (TW) flights even say "the overhead bins on this a/c are smaller than on our other a/c so please utilize the space in front of you for smaller bags...."
 
727forever
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 11:00 pm

Quoting KC135TopBoom (Reply 13):
DL could really use these B-757s. Yes, AA can back fill the ex TW B-757s with the ex MD-83s that are parked in the desert. But, that isn't exactly a straight mission equipment swap, now isn't it?
Yeah sure

I would put money down that says that these airplanes are going to have a hole cut in the side and will be flying freight in the near future. They are in very high demand on the freight side, the leasing company will keep the lease rate very high and be unwilling to negotiate due to the demand for the 757, and only freight companies will be willing to pay the higher rates.

One question for the experts who work these aircraft. Do they still have the odd cockpit switch positions that TWA had on their 727 & 747 panels? This was the main reason why former TWA aircraft had a very short life as freighters.

727forever
727forever
 
LMP737
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 11:36 pm

Quoting RoseFlyer (Reply 4):
Umm, if only American didn't have a fleet of 757s that are worse than the TWA planes. Some of the 757s delivered around 1990 have the nasty and uncomfortable brown first class seats and economy seats that look equally bad. Carpet and wallpaper is torn. Overhead bins are small. There are no power ports, or even fully electronic controls in the armrest for the IFE.

All of AA's RR powered 757 have the brown leather first class seats along with having power ports, enlarged over head bins and each seat has individual IFE controls. Also AA is in the process of replacing the light blue seat covers with the standard AA dark blue seat covers.
Never take financial advice from co-workers.
 
AAtakeMeAway
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 11:38 pm

Quoting LMP737 (Reply 18):
Also AA is in the process of replacing the light blue seat covers with the standard AA dark blue seat covers.

Are they going to put adjustable headrests in? Also, will the ex-TW S80s get the adjustable headrests?
 
LMP737
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RE: AA 757 Fleet Simplification

Wed Jun 07, 2006 11:48 pm

Quoting AAtakeMeAway (Reply 19):
Are they going to put adjustable headrests in? Also, will the ex-TW S80s get the adjustable headrests?

Only the seat covers are being changed. Adjustable head rests would require the Recaro seats. AA simply does not have the money to do that. As for the ex-TWA MD-80's that don't have the Recaro seats they will remain the same.
Never take financial advice from co-workers.
 
lotsamiles
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 12:08 am

Quoting 727forever (Reply 17):
and only freight companies will be willing to pay the higher rates.

These 757's have build years between 1996 and 1999. The market rate for a pax 757 of this age is north or $200K/mo, that pushes the freighter rate up above $250K/mo. I think these aircraft may have to go thru one more pax lease of 5 years or so until the conversion economics will work.

Regards,
Lotsamiles
 
NASOCEANA
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 12:40 am

Could they be making room for a potential B787 order!!!
B777 greatest Airliner ever built!
 
nosedive
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 12:49 am

Quoting NASOCEANA (Reply 22):
Could they be making room for a potential B787 order!!!

No, A350  sarcastic 
 
LMP737
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 12:50 am

Quoting NASOCEANA (Reply 22):
Could they be making room for a potential B787 order!!!

No, that order is still some years off.
Never take financial advice from co-workers.
 
airmailer
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 12:51 am

Quoting Orlando666 (Reply 14):
DL could really use these B-757s.

Are the engines the same on the ex-TWA 757s as they are on Delta's existing 121 757s?

If so I could see their use to DL, if not I would be almost certain that they would pass.
 
RandyWaldron
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 1:19 am

How does this come as such a suprise to anyone? AA has already returned several of these aircraft to the leasing company. The sub-fleet simply does not make good business sense for the company, no matter what some of you feel about overhead bin space, seat covers, etc.

Quoting KevOC3 (Reply 9):
DL would love to get there hands on them.

No, I doubt they would. Just because they have an engine type commonality doesn't make them a sure-fit for an airline's fleet. It would cost DL an arm and a leg just to train the Flight Attendants because these aircraft have different exit and emergency equipment configurations.

Quoting KC135TopBoom (Reply 13):
DL could really use these B-757s

Wrong answer. They could? I was under the assumption that DL was trimming excess capacity. There are too many differences between the DL aircraft and the TW aircraft. Even though they may seem miniscule, simply the fact that these aircraft have a DOOR 3 means DL could incur millions in FA training costs. If DL wanted 757's with different configurations, they've had AMPLE (read: 20+years) time to buy them.

Quoting AirMailer (Reply 25):
Are the engines the same on the ex-TWA 757s as they are on Delta's existing 121 757s?

Yes, they both have PW2037's.
"Flaps 20, gear down, landing checklist please..."
 
LY4XELD
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 1:38 am

Quoting Boeing Nut (Reply 7):
Yet one last way that AA is rubbing the memory of TWA's nose in it.

By returning leased planes that were a carryover from TWA? I think "rubbing the memory of TWA's nose in it" would have been not taking them at all in the first place.

Quoting Flyibaby (Reply 12):
Are you kidding me? I work on both of these types of 757s every night and the TW overheads are actually bigger!

I disagree...these 757's consistently fly up here to SEA and they have smaller bins and fill up quickly because rollaboards have to be put in sideways.
That's why we're here.
 
AV8AJET
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 1:51 am

Are these Ex-TWA planes ETOPS or were they ETOPS? If so maybe DL could make them work for them with shorter range European routes out of JFK to places like GLA/EDI/DUB etc... just a thought. Training costs might be ok if they are able to free up some 763ER's for other expansion and just train the JFK crews on the "different" cabin config's. Keep in mind that DL also has different cabin configurations and door setup's on a number of their international 763ER's. Ex-Gulf Air ones for example with 6 full size doors and a pair of overwing exits compared to the majority of the fleet with 4 full size doors and 4 overwing plugs.
"To fly or not to fly there is no question!"
 
BigGSFO
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 1:58 am

Not quite sure which 757 markets AA could replace with M80's unless they plan on sending them to MIA, which is highly unikely. I suppose some LAS service can be downgraded.

I would say we will see some transcon service discontinued, such as LAX-EWR, FLL, IAD, etc. The 738's on those routes can support the domestic 757's range.
 
MaartenV
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 2:11 am

Quoting Orlando666 (Reply 14):
Why was this not done earlier I wonder...

Because the leases didn't end earlier and it was probably more expensive to cancel the leases and pay a fine, then to keep these 757s in the fleet for a bit longer.

All though some of you might be right about the fact that these different features are not necessarily worse then the ones on the original AA birds, it does make sense to ditch these 19 compared with the 124 AA 757s.

Are they upgrading the interiors of their own 757s, or have they recently?
Its all about supply and demand...
 
Max Q
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 2:16 am

Remind me again why AA bought TWA!
The best contribution to safety is a competent Pilot.
 
flight7e7
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 2:49 am

I recently flew several Latin and S. America routes in 757's that belong to AA. They should be mortified to fly these planes on lucrative routes that they charge a small fortune for what they call IFS...might as well be flying to STL or DFW or MIA.

I have been on these venerable old birds lots in the last 2 years-someone tell me where are the powerports, or am I always looking in the wrong direction.

Come on.....powerports. Lan Chile puts you guys to shame, even on internal flights as does TAM. Now, there's service.....and POWERPORTS.

Cheers,

FL7e7
 
LMP737
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 3:14 am

Quoting Flight7E7 (Reply 32):
I have been on these venerable old birds lots in the last 2 years-someone tell me where are the powerports, or am I always looking in the wrong direction.

AA's 757's do have power ports, just not in every row.
Never take financial advice from co-workers.
 
wdleiser
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 3:16 am

I want them to goto United. United lacks 757's over the pond. I want to see a UA 757 in Europe!
 
DL WIDGET HEAD
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 3:19 am

Quoting PSU.DTW.SCE (Reply 10):
I wouldn't say that DL wants them given their financial condition.

I could see DL trying to get these or at least some of them and their financial position is improving.
 
dartland
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 3:20 am

Quoting Max Q (Reply 31):
Remind me again why AA bought TWA!

Because UA bought US....oh...wait a minute....Doh!!
 
warreng24
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 5:21 am

UA's 752 fleet is PW powered. I would think that UA could find a home for them.
 
ckfred
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 6:37 am

Quoting Flyibaby (Reply 12):
Personally, I think AA has their head up their ass when comparing their 757s and the old TW ones.

Remember that AA has 124 757s, while there are only 19 ex-TW 757s. The next smallest fleet after the ex-TW 757s is the 737-800 fleet at 77 planes. It just doesn't make economic sense to keep such a small subfleet.

The area in which AA's 757s excel is performance. A friend of mine is a 757/767 F/O, and the RR-powered 757s use slightly less fuel then the P&W powered 757s, and a 757 with RB.211 enginess will outclimb a 757 with PW2000 series. engines
 
dc10hound
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 7:20 am

Quoting Flight7E7 (Reply 32):
someone tell me where are the powerports, or am I always looking in the wrong direction.

And the answer was:

Quoting LMP737 (Reply 33):
AA's 757's do have power ports, just not in every row.

Quite correct:

All first class (row 1-6) and tourist class front row and in-arm tray table seats (row 9, 10, 17, and 16) include power ports.

Standard tourist class seat assemblies do not all have the power port installed in the current seating configuration. Only seats in rows 9-14, 16, 17, 21, 23, 25, 28, and 31 have the power ports installed.
"Eagles soar. But weasels never get sucked into jet intakes.."
 
PSU.DTW.SCE
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RE: AA 757 Fleet Simplification

Thu Jun 08, 2006 12:36 pm

I have to disagree with many points on this thread.

1. In does NOT make sense for AA to keep these aircraft, since their small subfleet causes numerous scheduling problems, operational challenges, and lacks commonality across the board with the significantly larger RR fleet.

2. Lease rates, AA does not want to pay the excessive lease rates for this aircraft type, especially considering it does not fit in with the rest of the fleet.

3. The removal of the remaining 19 757's does not necessarily mean routes will be dropped. Considering this fleet type has been scheduled to leave for years, it should come as no surprise. A number have already left. AA has an enormous fleet, and 19 aircraft represents a small drop in the bucket. They can increase utilization of their current fleet, bring MD-80's out of the desert, etc. These 757's were being used domestically and can be replaced with MD-80 flights or other 757's.

4. Don't quote me on this, but I don't believe that AA has maintained the ETOP's standards on these aircraft, since there was no need to fly them on such routes.