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Tue, Jun 03, 2008

Aging Aircraft Make Headlines Once Again

Concern Isn't On Safety, But On Fuel And MX Costs

Aging aircraft fleets are once again in the news, though not necessarily due to safety concerns. Older planes drink more fuel, and eat up higher percentages of airline maintenance budgets... both significant concerns as domestic airlines continue to hemorrhage cash.

"They built them to last, and maintenance procedures are in place," Teal Group analyst Richard Aboulafia told Forbes. "There's no connection between age and safety. The problem isn't safety, it's fuel."

Northwest Airlines operates by far the oldest fleet among US carriers, thanks to its 94 DC-9s that average 36 years old. Without those planes, Northwest's fleet would average closer to 11 years of age.

American Airlines has the second-oldest fleet, with its 655-plane fleet averaging 15 years of age. Nearly half those planes are McDonnell-Douglas MD-82 and MD-83 narrowbodies, the only slightly-younger successors to Northwest's aging Douglas jets.

United Airlines is third, with its 460 planes averaging 13 years of age, due in part to that carrier's fleet of older Boeing 747-400 jumbos.

In addition to being gas guzzlers and maintenance hogs, older planes are also louder on average, and less comfortable for passengers. Aboulafia notes foreign carriers are able to offer better amenities for their passengers, in part because their newer aircraft are better able to support them.

But in most cases, those old planes are also paid off, or at least much cheaper for the airline to own than leasing or financing newer aircraft. As fuel prices continue to climb, however, the gap narrows.

When it comes to fuel efficiency, it's no contest: new aircraft are as much as 70% more fuel efficient than planes 40 years ago, according to the International Air Transport Association. In the last decade alone, efficiency has improved by almost 20 percent... through the use of lighter materials, and more efficient turbofans.

Trouble is, most US airlines simply aren't able to afford new aircraft. That's problematic, especially when they can no longer afford to fuel their old planes, either...

FMI: www.nwa.com, www.united.com, www.aa.com

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