(corrects amount of fourth quarter loss)
at American Airlines is hinting the carrier might have to use current Boeing narrowbodies to replace its MD-80
aircraft as a result of slow movement by manufacturers in offering a
Gerard Arpey tells analysts
and investors the carrier “continues to be a little discouraged” by the timing
of the next generation narrowbody.
He believes American might be pushed “in the direction of more 737-800s” to
replace its MD-80s. Flight’s ACAS
database shows American flies 211 MD-82s and 89 MD-83s.
carrier has already accelerated the number of aircraft delivered in 2009 by 10
aircraft, which will result in 23 deliveries of Boeing 737-800s that year.
American has no aircraft deliveries planned for 2008.
an earnings discussion today CFO Tom Horton said $300 million of the $800
million the carrier has allotted to capital expenditures this year will be used
for pre-delivery deposit payments for 18 of the 47 -800s the company has on
continues to give its widebody
replacement evaluation “careful consideration” says Arpey, noting they’re spending a “good deal of time”
with the carrier’s planning and engineering departments looking at the 787 and
the Airbus A350. “They’re both compelling airplanes,”
according to American’s CEO. But he cautions that the airline is not
commenting on when it expects to make a decision.
that analysis continues American is pushing to equip its current Boeing fleet
with winglets. All of the carrier’s 737s now feature winglets. More than 40% of
the airline’s 133 757s have winglets, and Horton says American plans to finish
equipping its 757 fleet by yearend.
winglets should help American combat some of the “inflationary headwinds”
Horton foresees American experiencing this year. He notes the airline has
targeted $150 million in cost savings.
legislation approved by Congress raising
the pilot retirement age to 65 could help the carrier reach that target. Horton
notes that the airline’s pension cost will fall if a pilot’s time as an active
employee is extended.
this week management told pilots that focusing on executing that law extended
the deadline of its consideration of a proposal the Allied Pilots Association
submitted to carrier late last year in early contract discussions. Pilots are
seeking formal mediation from the US National Mediation Board.
American parent AMR posted a $69 million loss for the fourth quarter, the
company logged a $504 million profit in 2007, up from $231 million in the