Carrier Tells Boeing It Wants More 737s... Yesterday,
Please
Confirming
reports American Airlines will soon retire the more aged members of
its fleet, on Wednesday the carrier announced it has accelerated
its plan to replace some the carrier's MD-80s, by notifying Boeing
it wants to move up deliveries of 47 Boeing 737-800s remaining
under a previous 124-plane purchase commitment.
American initiated the process by notifying Boeing the airline
will take delivery in early 2009 of three of these aircraft, which
originally had been scheduled for delivery in 2016. American
intends to continue pulling forward deliveries of the other
aircraft from its current 2013-2016 delivery schedules into the
2009-2012 timeframe.
The airline hastened to add subsequent decisions to accelerate
deliveries -- or for new plane orders -- will depend on such
factors as future economic and industry conditions, and the
financial condition of the company.
"We believe that beginning to replace some of our MD-80s in a
measured way makes economic sense and represents prudent and
strategic reinvestment in our business that will bring long-term
benefits to shareholders, customers and employees," said AMR
Chairman and CEO Gerard Arpey. "Our existing agreement with Boeing
gives us ample flexibility for our long-term fleet plan."
"While the MD-80 remains an excellent aircraft that serves us
and our customers well, the new 737s will be a great addition to
our fleet that will lower our operational costs, boost the fuel
efficiency of our fleet and also bolster our efforts to lower
emissions and noise levels," Arpey added.
Showing that -- at times, anyway -- it pays to be the world's
largest airline, Arpey noted American's long-term purchase contract
with Boeing gives the airline substantial flexibility -- and also
includes the right to purchase on short notice additional 737s well
beyond the 47 committed aircraft. American also reserves the right
to purchase 787s, either by converting some of its 737 orders or
through new orders.
Arpey said the decision to begin replacement of American's older
MD-80s is part of the carrier's goal to improve the fuel efficiency
of its fleet by more than 20 percent by 2020 -- a move which will
also benefit the airline's bottom line in the long run.
Other fuel-saving measures now underway at American includes
adding winglets to its 737 and 757 fleets, and employing high-speed
tractors to tow airplanes on the ground and by taxiing aircraft
with a single engine when feasible. American has set a goal in 2007
to increase annualized fuel consumption savings to 125 million
gallons.
"Strengthening our balance sheet remains a high priority and an
important element of building a stronger financial foundation under
our Turnaround Plan," Arpey said. "Our announcement today shows
that we are taking action to strike the right balance between
reinvestment in the business and the need for continued financial
improvement. As we continue to improve our financial performance we
will have more flexibility to reinvest in the business for the
future."