American has ordered more aircraft than any other U.S. airline. Deliveries will begin in December, when the first of 10 Boeing widebody (BA) 777-300ERs arrive. It will fly Dallas-Sao Paulo. In 2013, the first of 130 Airbus A319 and A321 narrowbodies will arrive: These will be the first aircraft delivered from American's historic
2011 order, the largest commercial aircraft order ever. Also, deliveries of 125 B737-800s have begun
The future will also bring deliveries of 130 Airbus A320 neos, starting in 2017; six 777-200ERs, starting in 2014; and 42 Boeing 787s starting in 2015.
New aircraft provide a big advantage for airlines. They please passengers. They use less fuel than old aircraft. And they require less maintenance, saving millions of dollars, in what is referred to in the airline industry as a "maintenance holiday." The rapid low-cost growth of Spirit (SAVE), like the growth of JetBlue (JBLU) a decade earlier, is being fueled by new Airbus jets.Not to say that American is ever going to be a low-cost carrier like Spirit and JetBlue, but obviously it is reducing costs in bankruptcy and it will further reduce costs by replacing the country's oldest fleet with the newest. Of course, it will have to pay billions of dollars to buy the new aircraft, making commitments even as it walks away from leases for older aircraft in bankruptcy court. But generally, new aircraft are easy to finance because they are considered to be strong collateral. In the battle with US Airways (LCC), which wants to complete a merger with American before the bankruptcy ends, American moved in May to promote the passenger amenities, including lie-flat seats, planned for its widebody fleet. Last week, it announced the amenities for its A321, particularly the 15 aircraft it will use for trans-continental flights. "Taking over 500 new aircraft presents a tremendous opportunity to modernize our brand," said Rob Friedman, American's vice president of marketing. "Our customers understand that we are moving forward to having the youngest fleet in the industry in five years, and the feedback has been tremendous."
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