N965VJ
Veteran
- Joined
- Nov 21, 2005
- Messages
- 3,254
- Reaction score
- 149
US Airways Looking to replace 737s
- Thread starter 700UW
- Start date
REALITY
RJ pay for pilots
99 passengers with 2 f/a’s
Along with all the bells and whistle of the E190 (software??????)
BYE BYE Boeing. Parker took a page out of jetBlues playbook only problem is IT AINT WORKING
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
Saw this - interesting.....
Jim
A sign of good times
Airlines are facing a new cost crunch due to rising aircraft lease rentals, which have gone up by 20% due to shortages in the international market. Leases for aircraft with basic seating configurations have risen 33% to $400,000/month from $300,000/month for popular models such as Airbus A320 and Boeing B737. Leases on higher seating configuration are as high as $550,000/month.
Aviation industry experts say leases were rising due to an increase in the London Interbank Offered Rate (Libor). “Libor is hovering around 5.12-5.25% compared with 2.50-2.75% in 2004." The aircraft shortage (especially 300+ seaters)is in part to a new aviation boom. A resurgence in tourism with high rates of growth in India, China and the Gulf countries is driving the industry.
Strong companies, like UPS, are looking for dozens of 757s. Well financed start ups are looking for 757s and 767s for all-business service across the Atlantic. Nigeria is an example of a country forcing its airlines to update fleets because of accidents. The planes parked in the desert are likely to stay there and be melted down. High fuel prices have made most of them uneconomical to operate. This is leading to a wave of global fleet updates - LCCs are forcing airlines everywhere to become hyper efficient. And the way forward is to have the newest possible equipment with the best fuel efficiencies and low maintenance costs.
Jim
A sign of good times
Airlines are facing a new cost crunch due to rising aircraft lease rentals, which have gone up by 20% due to shortages in the international market. Leases for aircraft with basic seating configurations have risen 33% to $400,000/month from $300,000/month for popular models such as Airbus A320 and Boeing B737. Leases on higher seating configuration are as high as $550,000/month.
Aviation industry experts say leases were rising due to an increase in the London Interbank Offered Rate (Libor). “Libor is hovering around 5.12-5.25% compared with 2.50-2.75% in 2004." The aircraft shortage (especially 300+ seaters)is in part to a new aviation boom. A resurgence in tourism with high rates of growth in India, China and the Gulf countries is driving the industry.
Strong companies, like UPS, are looking for dozens of 757s. Well financed start ups are looking for 757s and 767s for all-business service across the Atlantic. Nigeria is an example of a country forcing its airlines to update fleets because of accidents. The planes parked in the desert are likely to stay there and be melted down. High fuel prices have made most of them uneconomical to operate. This is leading to a wave of global fleet updates - LCCs are forcing airlines everywhere to become hyper efficient. And the way forward is to have the newest possible equipment with the best fuel efficiencies and low maintenance costs.
Travelpro72
Veteran
- Joined
- Jan 30, 2005
- Messages
- 4,964
- Reaction score
- 455
Well "Sunshine" I must say that I'm overly flattered that you have singled ME of all people on this board as being a complainer. Are you for real? We are talking about an airplane here...... moving on. Another wacko added to the group.
The more the merrier 
Oh yeah, I see YOU have made quite a few friends on here pretty quick too. Keep up the good work.SoftLanding
Senior
- Joined
- Jul 25, 2005
- Messages
- 255
- Reaction score
- 1
Jim,
interesting. And it comes as the industry is adding lots of seats across the Atlantic, Central America, Caribbean etc.
Just wondering how far away the top is in the economic cycle for the airlines? Maybe they can go further this time, bacause of CH II...
And to get back on topic, B737 replacements will be on the property soon, E190.
I don't know who told you that info about T-4, probably someone that did not work for HP when T-4 opened. The 747 was flying back then, and the 757 had already been in the fleet for 3 years.
The only Jetways that I know of that are pure 737 gates, are A-1, and A-17. The even side of A will fit an Airbus all the way down the line to the end. The 757 will fit from the midpoint of the concourse to the end, but usually are just parked at the ends.
RowUnderDCA
Veteran
- Joined
- Oct 6, 2002
- Messages
- 2,123
- Reaction score
- 1
Anybody who thinks WN's business model isn't built for the long-haul, vis-a-vis their competition, is dreaming.
They have built in efficiencies no other carrier,except maybe JetBlue, can touch.
Anytime WN starts approaching a revenue shortfall, they can raise fares and still come in lower than legacies.
They have come thru the worst period in aviation history with profits and espirit de crop intact.
Now that the election is over, cheap oil is over. Who's better prepared to switch from metal to plastic jets and build in yet another cost advantage?
They have built in efficiencies no other carrier,except maybe JetBlue, can touch.
Anytime WN starts approaching a revenue shortfall, they can raise fares and still come in lower than legacies.
They have come thru the worst period in aviation history with profits and espirit de crop intact.
Now that the election is over, cheap oil is over. Who's better prepared to switch from metal to plastic jets and build in yet another cost advantage?
Oh it does suck alright. The new row with only 2 seats (I think row 9?) does not recline, and it is sitting STRAIGHT up, not even slightly slanted like most rows. Pretty bad.
With regards to 737 replacements:
According to Doug at PHX FA meeting, it will be 737NG or Airbus 32x family... US is in "intense" talks with both (his words...)...whichever offers the cheaper deal (duh....
)He said expect a formal announcement in 1st quarter 2007.
Its US after all... I was going to say "least expensive", but "cheapest" seemed more fitting... 🙄
He went on and on about the talks, but I think he said something about "purchase price."
TCO= Operating cost? If so, he said costs were too similar to argue about....
Just reporting what I heard... 😉
CV580ETOPS
Senior
- Joined
- Nov 9, 2006
- Messages
- 311
- Reaction score
- 81
Well "Sunshine" I must say that I'm overly flattered that you have singled ME of all people on this board as being a complainer. Are you for real? We are talking about an airplane here...... moving on. Another wacko added to the group.
I see the meds aren't working well today now,are they?
CV580ETOPS
Senior
- Joined
- Nov 9, 2006
- Messages
- 311
- Reaction score
- 81
Singleflyer
Senior
- Joined
- Mar 27, 2003
- Messages
- 466
- Reaction score
- 6
Total Ownership Cost is how you determine the lowest cost.
No doubt the current Boeing Airframe is built to last a long time. I understand Boeing Engineers wear both suspenders and belts on their pants, so if one fails they won't loose their pants, and that is how they build their products.
Steelcase makes great office furniture. In the past their desks have been made to last forever. Their current desks are still very well made, but not as good as rheir past models. The reason being, facility managers want to change furniture often to keep office looking morden. Though the new desks cost less to purchase, the per year cost is probably about the same since they are planiing to change the desks more frequently.
With changes in composite materials, wing design, and engine improvements. Airline management may not want an airframe to last 30 years anymore, maybe only 20 years. So they can get rid of the plane and get a more advance design sooner. SO they don't want to pay for the extra ten years of life at purchase time.
Years ago when the 737-300,400s came out airline did not rush out and re-engine the -200 fleet. Why, not cost effective. About the only cost effective change to older planes have been the blened wingletts, Why, raising fuel costs.
In the past at Beancounter Air (NW) braged how it was very cost effective to keep the DC-9s since they were paid for (very low cost of total ownership.) With the current cost of fuel, NW can't wait to dump their forty year old Mad Dogs. And NW would probably would have been better off if they dumped these years ago for a more fuel effecient plane like the Aibus 320 that they have in their fleet.
Times change and along with that are the economics. People here assume management is planning to keep the newer plane on the property as long a the current 737s, 757s. If the initial cost is lower (like the newer desks) The plane could be to up-date more often, and take advantage of the lower initial coast along the way. And then the total ownership cost would contine with a newer more advance plane.
No doubt the current Boeing Airframe is built to last a long time. I understand Boeing Engineers wear both suspenders and belts on their pants, so if one fails they won't loose their pants, and that is how they build their products.
Steelcase makes great office furniture. In the past their desks have been made to last forever. Their current desks are still very well made, but not as good as rheir past models. The reason being, facility managers want to change furniture often to keep office looking morden. Though the new desks cost less to purchase, the per year cost is probably about the same since they are planiing to change the desks more frequently.
With changes in composite materials, wing design, and engine improvements. Airline management may not want an airframe to last 30 years anymore, maybe only 20 years. So they can get rid of the plane and get a more advance design sooner. SO they don't want to pay for the extra ten years of life at purchase time.
Years ago when the 737-300,400s came out airline did not rush out and re-engine the -200 fleet. Why, not cost effective. About the only cost effective change to older planes have been the blened wingletts, Why, raising fuel costs.
In the past at Beancounter Air (NW) braged how it was very cost effective to keep the DC-9s since they were paid for (very low cost of total ownership.) With the current cost of fuel, NW can't wait to dump their forty year old Mad Dogs. And NW would probably would have been better off if they dumped these years ago for a more fuel effecient plane like the Aibus 320 that they have in their fleet.
Times change and along with that are the economics. People here assume management is planning to keep the newer plane on the property as long a the current 737s, 757s. If the initial cost is lower (like the newer desks) The plane could be to up-date more often, and take advantage of the lower initial coast along the way. And then the total ownership cost would contine with a newer more advance plane.
