Midnight Mike
03-23-2007, 06:15 AM
American nears decision on MD-80 successor, RegionsAir replacement
Thursday March 22, 2007
American Airlines will make an announcement regarding fleet renewal "in short order," according to Chairman and CEO Gerard Arpey, who conceded that the carrier's more than 300 MD-80s burn too much fuel. He said 737NGs may be a viable replacement.
Speaking yesterday at the JP Morgan Aviation and Transportation Conference in New York, available via webcast, he said AA is trying "to figure out the timing of [potential 737NG] deliveries and how it would affect fuel efficiency. . .Fuel remains a huge wild card." He added that the "shocking price" of fuel in recent years "has forced us to be much more vigilant about how much fuel we consume." AA expects to save 95 million gal. of fuel this year through conservation initiatives, he claimed.
But the carrier's lack of capacity growth and high load factors give it some flexibility regarding fleet renewal, Arpey said. Domestic capacity is expected to fall 1% in 2007 with international capacity remaining flat or slightly lower than 2006 levels, he noted. "We've taken a disciplined approach when it comes to capacity," he said.
Separately, AA is trying to reestablish service to cities previously served by regional partner RegionsAir, which suspended operations two weeks ago over issues related to pilot training and certification (ATWOnline, March 13). AA parent AMR Corp. is working with Great Lakes Aviation to restore service between St. Louis and Burlington, Iowa, the Illinois cities of Decatur, Marion, Springfield and Quincy, and Fort Leonard Wood, Mo.
AA reservation agents will rebook without penalty passengers whose flights were cancelled or offer full refunds for the portion of travel affected by RegionsAir cancellations. Great Lakes operates Beech 1900s and Brasilias. RegionsAir also operated on behalf of Continental Airlines.
Thursday March 22, 2007
American Airlines will make an announcement regarding fleet renewal "in short order," according to Chairman and CEO Gerard Arpey, who conceded that the carrier's more than 300 MD-80s burn too much fuel. He said 737NGs may be a viable replacement.
Speaking yesterday at the JP Morgan Aviation and Transportation Conference in New York, available via webcast, he said AA is trying "to figure out the timing of [potential 737NG] deliveries and how it would affect fuel efficiency. . .Fuel remains a huge wild card." He added that the "shocking price" of fuel in recent years "has forced us to be much more vigilant about how much fuel we consume." AA expects to save 95 million gal. of fuel this year through conservation initiatives, he claimed.
But the carrier's lack of capacity growth and high load factors give it some flexibility regarding fleet renewal, Arpey said. Domestic capacity is expected to fall 1% in 2007 with international capacity remaining flat or slightly lower than 2006 levels, he noted. "We've taken a disciplined approach when it comes to capacity," he said.
Separately, AA is trying to reestablish service to cities previously served by regional partner RegionsAir, which suspended operations two weeks ago over issues related to pilot training and certification (ATWOnline, March 13). AA parent AMR Corp. is working with Great Lakes Aviation to restore service between St. Louis and Burlington, Iowa, the Illinois cities of Decatur, Marion, Springfield and Quincy, and Fort Leonard Wood, Mo.
AA reservation agents will rebook without penalty passengers whose flights were cancelled or offer full refunds for the portion of travel affected by RegionsAir cancellations. Great Lakes operates Beech 1900s and Brasilias. RegionsAir also operated on behalf of Continental Airlines.