Flying-Tiger
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Spirit Placed Airbus Order

Fri Mar 19, 2004 8:39 pm

Word is that Spirit has ordered 35 A319/320/321 firm and has signed for an additional 60 options. Source: WSJ

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Flying-Tiger
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voodoo
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 8:46 pm

Well, as was stated here, Boeing wasn't interested......  Insane


More MD-80s for Jetsgo? Big grin

[Edited 2004-03-19 13:12:59]
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md80spirit
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:11 pm

Just the 319 and 321 no 320. New a/c will have biz class and coach class. Also inflight ptv's in all coach seats upgraded in spirt plus(biz class) check www.spiritair.com they will give offical press soon.
 
kaitak
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:15 pm

Very curious that Boeing wasn't interested. Was there previous "bad blood" or disagreements between them. Why would they just hand such an order over to a competitor?

Or was it that Boeing wasn't willing to match Airbus's unit price?
 
teahan
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:16 pm

Apparently confirmed, the following article includes a quote from Spirit CEO, Jacob Schorr:

"Spirit already has one of the lowest costs of operation in the airline industry, and the new Airbus aircraft, which are technologically advanced and fuel-efficient, will assure our continued leadership."

http://www.freep.com/money/business/spirit19_20040319.htm

Good news for Airbus.

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
AirframeAS
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:17 pm

Boeing lost business bad and thats their fault. Sorry to hear that. Airbus wins once again!  Yeah sure
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teahan
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:19 pm

Seems to be an equal number of A319 and A321 aircraft; if true fantastic news for the latter.

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
md80spirit
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:22 pm

If I was Jetblue and was thinking of a partner or codeshare buddy, anyone see NK & B6 be the first LCC 's to partner up
 
Flying-Tiger
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 9:52 pm

Here we go:

18 Airbus A319-100 (+30 options)
17 Airbus A321-200 (+30 options)

Deliveries starting in early 2005.

Regards
Flying-Tiger
http://fly.to/rorders
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DeltaMD11
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 10:00 pm

Wow, this is great news for Spirit. I guess this indicates that they are fairing pretty well with a sizeable order like that. It will be nice to see some more A321's in the US other than US Airways and the Ryan Int'l A321 that's been floating around.
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Greg
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 10:57 pm

It just seems a bit strange since they don't have the revenue to support even a fraction of that amount.....(let alone nearly 100)

So yes, I'd say it's a sweetheart deal. But hey, they're good aircraft...although I think the 321's may be a bit much in capacity.

While it's nice, i'd say most will be on the used plane market within two years if not sooner (sorry Spirit supporters...).
 
greaser
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:33 pm

Spirit should be careful on their expansion, we all know the effects of overexpansion, esp. if u venture out against WN & B6...haha...good luck, you'll need it Spirit.
Now you're really flying
 
greaser
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:35 pm

BTW, Boeing felt that there is no need to be in the running against Airbus for THIS order...you shld know why....(remember IBERIA)
Once bitten twice shy
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717fan
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:38 pm

Congratulations to Airbus! I do not understand Boeing....
 
AIR757200
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:41 pm


New planes, expanded route network... will this wake up the sleepy giant Northwest in DTW?  Big grin
 
dutchjet
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:42 pm

35 brand new airplanes for Spirit? Can they afford this? While Spirit just had a large capital investment, $2 billions worth of new airplanes for an operation of Spirit's size is very risky. Until now, Spirit purchased only used airliners - and their MD80s were obtained on very aggressive terms.

I wonder what kind of deal Spirit got from Airbus - of course, it was very competitive, but did it include special incentives like deferred payments and the like? I guess that the Airbus deal was so extraordinary that Boeing did not even pursue the business (which is so very unususal)........it would have to be a great deal for Spirit to afford these new airliners.

Please, please do not turn this into an A v B discussion.
 
MidnightMike
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:49 pm


Godspeed for Spirit, new aircraft, but like the other posters have suggested, can Spirit really afford these aircraft? Perhaps Boeing did not want to expose themselves to the risk that Spirit will financial trouble in the future, remember TWA & of Hawaiian, just to name a few.
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mariner
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:55 pm

Why do people imagine they got some "special deal"? Everyone said the same thing about Frontier when they ordered the new Airbus, and it wasn't true.

Spirit may be small, but they seem to be firing on all cylinders - and they are profitable.

Spirit has already said that will make an initial public offering (IPO) to boost their capital.

cheers

mariner
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AirT85
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RE: Spirit Placed Airbus Order

Fri Mar 19, 2004 11:55 pm

This is a big order for an airline of Spirit's size and type. They are mainly a leisure airline. For some reason...I don't see the likelyhood of them making enough money out of cities like ACY to justify 35 brand new Airbus'. I realize ACY isn't their main hub but having relatively (for their size) operations in cities like that and also Myrtle Beach, its quite an interesting move! Here's hoping the best for them.

-Tony
Why would God make us all so different, if He wanted us to be the same?
 
CPDC10-30
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:00 am

Does anyone know which engines and MTOW options that Spirit is considering for their order?
 
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mariner
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:03 am

AirT85:

The ATSB said much the sme as you when they decided against backing a loan for Spirit.

They said they Spirit wouldn't be able to repay the loan. Well, since then, Spirit is still flying, making money and raising $125 million in the capital markets.

In that sense, they've outshone UAL, who says the capital markets are closed to them without the ATSB backed loan.

cheers

mariner
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quickmover
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:04 am

Mariner,

They are profitable flying $5 mil. md-80s that carry 150-160 passengers. 319s probably go for about 40 mil. and the 321s for $60 mil +. Granted maintenance and fuel burn will go down, but will it offset the cost? Could someone tell me if I'm close on these numbers?
 
AirT85
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:10 am

Even if the costs of operating the aircraft are lower than the MD-80s (which I am sure they are) you still have to take into account Spirit training each and everyone of their crewmembers and ground staff to handle the new aircraft, not to mention the higher aqcuisition rates. I'm not here to wish doom on Spirit, I'm just very curious as to how they plan on pulling this off.

-Tony
Why would God make us all so different, if He wanted us to be the same?
 
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mariner
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:15 am

Quickmover:

You're roughly correct on the numbers - Frontier is paying about $36 million for the A319's.

But - obviously - they don't pay that total cost up front. Nor do we know - yet - if Spirit's aircraft will all be purchased or some of them leased.

Now, don't get me wrong - I think it's a ballsy expansion plan. But if you don't expand, you don't grow.

We are seeing the forward plan in bits and pieces. The first step was gettng the capital investment.

Second step is the aircraft order. I'd guess that isn't the end of the plans.

Then again, there was another clue - when Spirit applied for permission to serve several various Caribbean and Mexican destinations.

So I very much doubt that the Spirit that is now is the Spirit that will be in five years.

cheers

mariner
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scottysair
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:18 am

It will be good for all Airbus A319 & A321. I like it alot for me and I can't wait to see with A319 & A321. Will able Spirit get expansion into the Latin American, Caribbean and etc?
 
phollingsworth
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:21 am

I assume that Spirit will be leasing these aircraft. Is that correct? Without knowing the exact terms of the lease it is impossible to say how the future will work out. One thing for sure, some leasing companies will get hurt in the future. The reason I say this is that the fair market value for a significant number of relatively new aircraft is now below the assumed residual value at the end of the lease. This could change, but as it stands now the trends don't look to promising.

Boeing is quite gun-shy right now. They have to borrow all of their money on the open market, at market rates. Therefore, if they lease or finance a group of planes for a company like Spirit, they need to ensure that the potential return off of the deal offsets the downside potential. If they pay relatively high interest rates, which they do given the value trend of used aircraft, then the risks might not be acceptable to Boeing. Compare this to the Hawaiian Airlines situation, where the leases are already in place and Boeing is taking a bath. If Hawaiian folds it will only get worse, especially for the 767-300ERs. I am not saying the Spirit will fold, but the chances are actually greater that Spirit will close up shop in the next decade when compared with Southwest.

By the way, given the recent A320 family orders, if you are an airline with a cash flow problem and a fair number of middle age A320s that you own, you are looking a a continuous drop in equity in the aircraft over and above the depreciation from usage. This hurts your ability to borrow money.
 
quickmover
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:28 am

I'm surprised somebody hasn't looked into taking on used 757 or 767s. If USAir goes under someday, there will be a huge number of airbus on the market. Used aircraft doesn't seem to be the trend these days but at some point I bet it will.
 
Greg
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:38 am

Call lawyers cynics..but I think Airbus may be making an astute move here.

By offering low ball pricing to LCC's here in the states...they do have somewhat of a built in market for their products when/if US/UA go under...or at least downsize significantly.

It's really only a matter of time before American West/JetBlue/Spirit finds the price of legacy carrier's 32X attractive. The more carriers...the more opportunity for placement....the less exposure to having your product not hold it's value.....

 
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mariner
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:44 am

Phollingsworth:

Some of your argument only applies if Boeing (say) funds the purchase/lease of the aircraft.

I'll use Frontier again, because I'm familiar with them - all the A319's are purchased and/or leased with non-Airbus financing, in many cases, European banks (I'd be pretty certain that Airbus did the introductions).

But then again, Boeing is giving Midwest an otustanding deal on the 717's - with Boeing providing the leasing finance.

cheers

mariner
aeternum nauta
 
toltommy
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Spirit Placed Airbus Order

Sat Mar 20, 2004 12:53 am

To all of you who think that NK's expansion won't work. How is this an expansion? At this point it's simply an equipment upgrade, until the options are exercised. The numbers must work for the initial order. They must have been able to show Spirit's management that it will reduce costs to operate these aircraft.

As for those of you who point to NK's failed ATSB loan app, all I can say is that 2 years is a long, LONG, time in this biz. The $125 million share they just sold off gives them nearly as much capital as B6 had at startup. There are plenty of markets that don't have LCC, and NK seems focused on opening up the caribbean to new service. Hopefully some of it will originate from DTW, because NW sure doesn't seem interested in it. They'd rather have their codeshare partners provide it.
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mariner
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 12:56 am

TOLtommy:

I think you misread what I said about the ATSB. I think Spirit has done a great job since then.

My point was that "even though" the ATSB turned them down, Spirit has come out of it with tis head very high.

cheers

mariner
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Aeronautik13
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:03 am

Congrats to both Spirit and Airbus, as much as I love MD-80s, they are the oldest/loudest planes in and out of LGA... Have to catch up with the time
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scottysair
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:04 am

here it is with the press releases:

Spirit Airlines Places Orders for New Aircraft

Friday March 19, 9:00 am ET

35 Aircraft Ordered, Up to 95 Possible


FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--March 19, 2004--Spirit Airlines announces today that it has entered into agreements to entirely replace its MD-80 fleet with orders for up to 95 new Airbus aircraft. "The firm commitment for 35 aircraft, valued at approximately $2 billion, will allow us to accelerate our significant growth plans and more than double our size," said Jacob Schorr, Chairman and CEO of Spirit Airlines.


"This is the second phase of a three-point growth plan for Spirit," Schorr said. "Phase one was completed just three weeks ago when we received a $125 million investment from a group of investors led by Oaktree Capital Management, LLC. This order signifies the beginning of phase two as we invest the capital to grow. Phase three will be detailed as we make additional announcements about future growth plans."

"Spirit already has one of the lowest costs of operation in the airline industry, and the new Airbus aircraft which are technologically advanced and fuel efficient will assure our continued leadership. Spirit chose the Airbus aircraft in part because of its wider cabin providing more comfort to our passengers and superior customer amenities. Thus, the choice of the Airbus A320 Family of aircraft was a clear one," said Schorr. "IAE V2500 engines were chosen for their superior fuel efficiency which Spirit feels will become an ever increasing factor in maintaining its low cost structure," said Schorr.

The value of these agreements, including 60 options, could be as high as $5 billion. "This is a combination of deals with three major global corporations; Airbus, IAE International Aero Engines and ILFC (International Lease Finance Corporation)," explained Schorr.

Currently Spirit Airlines has a fleet of 32 MD-80 aircraft which will be replaced on an expedited basis as the new aircraft are delivered.

About Spirit Airlines

In 2003, Spirit had the 2nd highest load factor of any U.S. airline. In the past five years the airline doubled its revenues to a reported $450 million in 2003. During this period of extraordinary growth, Spirit made significant investments in its systems, technology, product and brand, all focused on improving customer service and satisfaction.

In addition, Spirit developed state-of-the-art, proprietary reservation and departure control systems and initiated a new class of service, Spirit Plus. Spirit Plus offers business class leather seating with complimentary beverages and a snack. During this time, Spirit also successfully introduced a new, easy-to-use website that currently accounts for approximately 60 percent of total bookings.

The company expects to continue to invest in new technologies, including in-flight entertainment and facilities to provide value to its customers. The company will introduce e-service kiosks beginning next month, and Spirit has launched a number of web enhancements that improve the customer's ease of booking online.

Quick Facts

Headquartered in Fort Lauderdale, Fla.
Founded in 1990 in Eastpointe, Michigan
Spirit Airlines is the largest privately-held airline in the U.S.
Ranks as the 14th largest airline in the U.S.
115 flights daily to 16 cities
2,700 employees nationwide
Spirit's website is http://www.spiritair.com
Headquartered in Fort Lauderdale, Fla., 13 year old Spirit Airlines is the largest privately-held airline in the U.S. Spirit brings low fares and friendly service to 16 cities, including: Atlantic City, N.J., Cancun, Mexico, Chicago/O'Hare, Denver, Detroit, Las Vegas, Los Angeles, Myrtle Beach, S.C., New York/LaGuardia, San Juan, Puerto Rico, Washington, D.C., the Florida cities of Fort Lauderdale, Fort Myers, Orlando, Tampa and seasonal service to West Palm Beach. Spirit's website is http://www.spiritair.com.
 
BR715-A1-30
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:10 am

I am assuming they go with the V2500 just in case they want to work with B6 maintenance crews.
Puhdiddle
 
phollingsworth
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:12 am


Mariner:
Some of your argument only applies if Boeing (say) funds the purchase/lease of the aircraft.

I'll use Frontier again, because I'm familiar with them - all the A319's are purchased and/or leased with non-Airbus financing, in many cases, European banks (I'd be pretty certain that Airbus did the introductions).

But then again, Boeing is giving Midwest an otustanding deal on the 717's - with Boeing providing the leasing finance.


Well, from the previous reports, where Boeing supposedly said they weren't interested, I have to assume that Boeing was asked in some manner to fund the purchase of the aircraft. This could be directly by leasing the a/c to Spirit and/or provide purchase price discounts. Point is Boeing obviously thinks that the cost/benefit analysis for the Spirit deal was not worth it. Conversely they think the Midwest one is worthwhile.

As for Frontier, while I think they have a good product, I am not sure some of their recent choices will maximize economic profit, only time will show the outcome and I don't have all of the information that they have. However, I do remember that Boeing was not willing to match the deal that Airbus gave them. Even though the airplanes are leased from outside entities, the price these groups payed Airbus, directly effect their ROI, and in turn effect Airbus's ROI, which is partially determined on the cost Airbus pays to borrow money.

I cannot say if the deal is good, but my inclination is that some parties are going to get burned by some of the new aircraft deals we have seen in the past few years.

Peter
 
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mariner
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:20 am

Pholligsworth:

Um - with respect, you've got it the wrong way around. It wasn't that Boeing wouldn't match the Airbus offer.

When Frontier decided on the fleet repalcement program, they fully expected to go with Boeing - initially, at least, they didn't even talk to Airbus.

But those were the glory days before 9/11 whe the big airlines still appearedto be in good shape and Frontier was just a pipsqueak. Basically, Beoing wouldn't cut any kind of deal.

So Frontier went to Airbus - who said they weren't interested if it was just to bring Boeing to Frontier's negotiating table.

Eventually, Frontier and Airbus sorted it out, and Frontier - to their own surprise - went with Airbus.

All of this has been fully documented, and I was present at the shareholder's AGM when then CEO Sam Addoms explained what had happened.

cheers

mariner
aeternum nauta
 
DfwRevolution
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:23 am

Boeing wasn't interested......

Of course Boeing was interested! Do you really think that the largest aerospace company in the world would turn its head when it is suffering a dearth of orders?

The problem is, Spirit was looking at the A320 and 737NG. In 2003 Boeing sold 207 737s, 162 737s in 2002, and 188 737s in 2001. That's over 550 737s to be delivered. Boeing has filled nearly ever production slot for the 737 through 2006, so the earliest Boeing could offer any 737s to Spirit would be 2007. Spirit can't wait that long, and went with Airbus.

The Qantas LCC ran into the same problem recently, Boeing said 2007 Airbus said summer of '04, and guess who got the order? The same thing happened to U.S Airways, United Airlines, and British Airways.. all staunch Boeing customers who couldn't wait 3-4 years for their production slots. Now they all operate Airbus narrow bodies..

Production rate for the 737NG has been a semi-disaster for Boeing. The 737 is raking in cash for Boeing, but they have lost another potential customer due to the inflexible production rate of the 737. With the 757 line closing, maybe another 737 line will be opened, greatly increasing production.
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ORDagent
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:40 am

I find it interesting the Spirit, Frontier and Jetblue all have/will have A320 based fleets. I have a feeling that one day there MUST be consolidation of LCCs in the U.S. I think that one day Jetblue or Frontier are going to absorb each other along with Spirit. That will create a MAJOR player in the market that could very well kill some of the legacy cartel carriers. A carrier called BlueFrontier? Hubs in DEN, JFK and DTW will really create a serious route system.

I also think that this order is proof that the A320 has finally proven that it is compatible with LCC high utilization quick turn business models.

Boeing should be very nervous if the aren't already.
 
greaser
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:45 am

Dfwrevolution, I think you're relating too much to the car market. Tell me, if Boeing expands the 737 line, and the production and delivery rate is fast (hmm...3 a day), what would Boeing do when there is a dry season on the 737s? Expanding the line is risky should the product sell slowly for some time (e.g 777 for 2003).
This is not a car plant where you a virtually guaranteed to get 100 orders a day! (well, for most companies anyway)
Now you're really flying
 
Scorpio
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:49 am

Dfwrevolution,

opening a fourth 737 production line is in no way needed right now. Boeing can easily increase the production on the current lines if they want. Just a few years ago, for example, 737 production was a lot higher, with the same number of production lines.

Also the argument of Boeing having sold so many 737s doesn't fly: Airbus sold just as many, if not more, A32X in the same period, and their backlog is just as high, no even higher, than Boeing's.

Furthermore, there are some carriers looking at rescheduling 737 orders (Ryanair for example), so if Boeing wanted, that would already free up some delivery slots.

Point in case: If Boeing really wanted the order, they would not have been stopped by the points you raised.
 
MAH4546
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:54 am

That will create a MAJOR player in the market that could very well kill some of the legacy cartel carriers. A carrier called BlueFrontier? Hubs in DEN, JFK and DTW will really create a serious route system.

That's a pretty dumb idea, and it honestly won't happen. And don't forget Spirit's most important base (and the one that will be seeing the most growth thanks to the new order) is Ft. Lauderdale, not Detroit.

It is also great to hear about this aircraft order from South Florida's hometown airline. Awesome news. Now, Spirit will finally be able to do trans-cons from Ft. Lauderdale.
a.
 
DfwRevolution
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 1:55 am

Tell me, if Boeing expands the 737 line, and the production and delivery rate is fast (hmm...3 a day), what would Boeing do when there is a dry season on the 737s?

Well I don't think Boeing needs to manufacture 1095 737s a year, but they can only roll so many 737s off a single line.

Let’s say that Boeing manufactures 28 737s a month off a single line. This can be split into 14 a month for Line A and 14 a month for Line B. Then if Boeing scores a year of huge orders, production can increase up to say 20 per line, meaning 40 total a month. In a down turn, production can be dwindled back to say 4 per line, or even temporarily shut down a line. If I'm not mistaken, Airbus does this with the A320?

Boeing should be very nervous if the aren't already.

More to the point, if that mega-LCC came through, WN would feel some pressure.
I have a three post per topic limit. You're welcome to have the last word.
 
PHXinterrupted
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:01 am

"Also the argument of Boeing having sold so many 737s doesn't fly: Airbus sold just as many, if not more, A32X in the same period, and their backlog is just as high, no even higher, than Boeing's."

This statement is completely false.
Keepin' it real.
 
COTXDFW777AA
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:02 am

Boeing probably didn't pursue this sale b/c they know what will happen, Spirit will get crushed by NW and a large amount of used 737s w/ ptvs floating on the market won't help Boeing in the long run.

-COTXDFW777AA
Texas- it's like a whole different country!
 
jumbojet
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:05 am

These new Airbus planes will look sharp in Spirits new Livery.
 
Scorpio
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RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:12 am

Phxinterrupted,

This statement is completely false.

From both manufacturers' websites (numbers current for end of February):

737 backlog: 810
A32X backlog: 963

Your turn...
 
User avatar
scbriml
Posts: 17675
Joined: Wed Jul 02, 2003 10:37 pm

RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:19 am

DfwRevolution raises an interesting point. If these orders were lost because Boeing can't allocate production line slots, but Airbus can, it begs the question "How can Airbus find these slots, but Boeing can't?"

The A32x backlog (at end Feb) was 963. Production for 2002 & 2003 was 236 and 233 respectively.

The 737 backlog (at end Feb) was 810. Production for 2002 & 2003 was 223 and 173 respectively.

Within reason, the backlogs are similar, and apart from 2003's lower 737 production, they're in the same ball-park for build rates.

So does Airbus 'hold back' production slots so they can satisfy new customers, or do they have some customers more willing to defer delivery dates? If the latter, I would have thought, given the state of US airlines, that Boeing would be in a similar position. However, if Airbus does keep some production slots open for new customers, then it looks like a smart move.

Any other theories out there that I've completely missed?
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ulfinator
Posts: 292
Joined: Wed Mar 03, 2004 5:35 am

RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:29 am

Boeing chose not compete for this order. I would venture to guess it is becuase they new Airbus would be selling their aircraft with an insane discount. Boeing has already stated that they will not compete on price below a point becuase they have to make some money on the aircraft.

Boeing has also accused Airbus of selling aircraft at such low prices to get large orders and in turn flooding the market with aircraft. There are some many 319/320/321s out there that the market value on those models has fallen considerably and the leasing companys don't like that. Makes it harder to lease planes and make money.

Yeah it is a shame that times aren't better but Boeing is selling and delivering enough airplanes to make ends meet and is performing quite well financially considering the state of the airline industry.
 
miamix707
Posts: 3848
Joined: Tue Oct 21, 2003 2:22 pm

RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:30 am

More A319s.. eh yawn from an enthusiasts point of view, I know -not very relevant

Just curious, what draws passengers to Spirit? They are low cost aren't they? I've chosen others because the fares were much better last two times I flew.
 
col
Posts: 1707
Joined: Thu Nov 27, 2003 2:11 am

RE: Spirit Placed Airbus Order

Sat Mar 20, 2004 2:32 am

I believe that 20 of the Airbus units will come from ILFC, not directly from Airbus. This may answer the delivery availability theory. Only 15 units will be ordered from Airbus, guess these will be later ones.

The big issue for Boeing is that another LCC has gone Airbus way. The 737 LCC darling is loosing its sweetness. As Sprirt went for 321, I guess the 739 still cannot match the Airbus option.

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