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Sat, Mar 10, 2007

American Airlines Hints At MD-80 Replacement

Says 737-800 Is Strong Contender

In what may be the first tentative step towards replacing the second-most storied (read, aged) fleet of aircraft in service with a major US carrier, American Airlines said Thursday it will consider Boeing's 737-800 to replace its fleet of over 300 MD-80s.

Bloomberg reports American's Chief Financial Officer Tom Horton expects an announcement to be made "in the near future... The MD-80s are reliable, but it's time for us to think about replacing them. The 737-800 is a great airplane."

The news American is looking to replace its MD-80s is not new. Given the model's reliability, however, some thought American would hold out on replacing its "Mad-Dogs" until Boeing introduced its much-rumored next-generation "Y" narrowbody... or Airbus intro'd its own upgraded nextgen A320.

Horton told investors Thursday, however, that the airline can't wait that long -- as the 1980s-tech MD-80s burn as much as 20 percent more fuel than a comparable new 737.

American's diverse fleet of 672 aircraft currently includes 77 737-800s. Boeing didn't immediately comment on Horton's statements.

The -800 model accounts for 61 percent of Boeing's current 1,512-plane backlog for 737s, according to Bloomberg. That poses another problem, as last year Boeing announced a two-year waiting list for most of its models... and the company has shown reluctance towards expanding production, for fear of overcapacity when orders inevitably dry up.

Boeing may very well reconsider its stance, however... as a huge American order would trump even the number of 737s Southwest Airlines, Boeing's biggest 737 customer, has on order at the moment.

FMI: www.boeing.com, www.aa.com

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