I have not weighed in on the accelerated 2017 MD
-80 retirement yet, so here are my
For the MD
-80, a record quarter highlighted by strong over-achievement of targets, and a brand-new CEO (with a NB
mentality) leading the strategy for the merged carrier, have factored into the escalated retirement date. If executed, dozens of aircraft will remain parked in the dessert for upwards of 7 years, while still on active lease from AA
Clearly replacing capacity for ~160 frames is quite an undertaking. Yes, there are enough orders/options/delivery slots with A & B to accomplish this, but it will be too much for AA
to absorb financially, if there is any slip in consistent profits over the next 1-2 years. And thus the active service extended. The three-year retirement plan would be ambitious for a healthy airline, not to mention one coming out of Ch.11 with large debt.
|Quoting 777stl (Reply 124):|
I’ve said for a while now that the MD80s weren’t going to be repainted only to be overruled and contradicted by the arm chair experts on here. To you guys, I salute you.
Gracious much? Act like you've been there before
As I have posted before, I thought at least ONE MD
-80 would be repainted. Given that when the new livery was unveiled, the MD
-80s were going to be retired between late 2018 - early 2020. You can badger me and others as being "armchair experts" but that info is very credible. To add, the leases are active until 2024, at basement rates. But my overall tone was that we could not simply rule it out completely, with the information we had at the time. This situation is fluid.
Now enter Doug Parker post-merger and one extrordinary over-achievement of a quarter.... Not earth shattering that the strategy would change and phaseout accelerated to 2017, is it?. Obviously, with most frames now set for retirement in the next 2-3 years, it doesn't make sense to paint them.
BUT if the finacials cause any deferrals in the deliveries and extension of the MD
-80 back to the 2018-2020 timeline, being repainted would once again be back on the table. However unlikely that may seem.
|Quoting UA444 (Reply 181):|
I have zero doubt the retirement will be later than they are currently planning.
Some perspective: A year from now, AA
will have ~130 active MD
-80s, with two years to reach it's retirement goal. For historical comparision, AA
had 127 727-200s at the start of 1994... The 727 was of course retired officially in 2002.
There's nothing quite like a trijet.