Order cancellations are starting...
JF Mezei
aircraft, forfeiting a $91 million deposit. Considering UA was in
bankrupcy protection not so long ago, it makes one wonder why they
didn't at least lower those orders during bankrucpy protection. 42
aircraft is a large number for an existing airline.
UA has 64 737-300, 27 737-500 and 97 757-200.
It has 55 A319s and 97 A320s.
Not sure how many of the 737s are still in operation.
Would A319 and A320 be sufficiently more fuel efficient (and lower
operating costs) compared to "classic" 737s to warrant replacing the
older 737s ?
Having gone through bankrupcy restructuring, is it correct to state that
UA would own 0 planes at this point in time ?
If UA ends up owning those old 737s, then it could become like
Northwest, saddled with old fuel guzzling aircraft it keeps because in
the end, the higher fuel costs are offset by having no lease payments.
But if those 737s are on leases, I have to wonder about the economics of
continued operation of those aircraft.
Could one conclude that United is in worse shape that thought, and
removing those 42 orders was required to keep long term debt low ?
Could this move be affected by the recent announcement of Continental
code-sharing with United ?
-----
Airbus has supposedly already had 43 cancellations this year (but from
what I read, some of those may have been cancellations of 350 mark 1/2
to be replaced with 350 mark 3.
Boeing says it has had no cancellations, but has revealed that Southwest
and Airtran have deferred some deliveries.
Interestingly, Ryannair has revealed that has has been talking to Airbus
and Boeing for long term narrowbody purchases.b It has said that
prices were still too high (alluding to potential sale prices once
airlines start to cancel orders).
Looks to me like the narrowbody market, extremely bouyant up to a few
months ago may be stalling rather abruptly now.
Is it already too late for airlines like Delta, AA, NW to place orders
to replace their DC-9/MD8x aircraft ?
.
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Al Reinschmidt
grounded within a year.
"JF Mezei" <jfmezei...@vaxination.ca> wrote in message
news:91ede$489bf377$cef8887a$85...@TEKSAVVY.COM...
A Guy Called Tyketto
Hash: SHA1
Al Reinschmidt <bus...@comcast.net> wrote:
> United announced several months ago that the entire 737 fleet would
be
> grounded within a year.
Azerbaijan Airlines is cancelling part of their order for 3
B787s, and replacing it with two B763ERs and 2 B737s, citing being
delayed three times by problems with unfinished work from suppliers and
shortages of some key parts.
It's interesting that they went with the B767 instead of
something more fuel efficient and economical like the B777. I guess it
comes down to passenger and airport capacity on their routes. This
definitely does start to breathe life back into the B767 program,
especially in light of the USAF bid on aircraft tankers.
It's interesting that this comes up with cancellations, as it
has been reported that Airbus has netted more firm orders than Boeing
so far this year.
BL.
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