AA orders yet another 777

[AC AA LA FA]

There are no plans for explosive growth with this order. There is even a chance we might realize a reduction in our fleet size depending on what ratio the company use for retirement of older a/c. That being said as well as what is mentioned in the above post might means nice shiny new metal/carbon comp...not job security.

 

[FWAAA]

I suspect that AA may not be paying much for these 777-300s and that may help explain why AA has not secured financing for them. Perhaps Boeing will lease them to AA for a nominal sum.

Why would Boeing be so generous? Today, Boeing announced yet another delay in the expected delivery date of the first 787-9 to early 2014 from late 2013. AA is not mentioned in this WSJ article (linked below) but AA's expected 42 787-9s have been subjected to multiple delays since AA first announced the order, and no doubt AA has sought compensation for that delay (as have other airlines). Perhaps some very cheap rental of some 777-300s is part of Boeing's compensation package?

http://online.wsj.com/article/SB10001424052970203687504577000213541613988.html

If you get the abbreviated version of the story (telling you to subscribe to read it), go to Google News and search for it there - that's how I got the full version of the story.

 

[kirkpatrick]

There are no plans for explosive growth with this order.

The nature of this order allows the company to grow if it wants to, replace if it decides that's the way to go. All they have to do is adjust the retirement of older aircraft as new ones come in. Aggressive retirements could result in little or no growth, slowing the retirement schedule could allow growth if they want that. Also, the numbers of aircraft and delivery dates are subject to review over the years.

No one could possibly adhere to a fixed plan over a ten year period, and no one could possibly predict precisely what is going to be the state of the airline industry ten years from now.

MK