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Major Changes Planned For AMR's Fleet
AMR Corp.’s fleet is due for a substantial overhaul now that the company’s American Airlines and American Eagle Airlines divisions are under Chapter 11 bankruptcy protection. Fleet plans had already been initiated by AMR, with a major narrowbody upgrade program using both Airbus and Boeing aircraft announced in July and a suspended divestiture of Eagle reducing that airline’s regional jet operations over the next decade. But with yesterday’s filing in the U.S. Bankruptcy Court for the Southern… (www.aviationweek.com) Más...Sort type: [Top] [Newest]
Well, as somebody already talked about it last week when this was first announced, this is just the very first round of gas right now. Very minor but laying the groundwork for other things to come. One thing I noticed in the article. They mentione Eagle and getting rid of a lot of those planes, but unless I missed it, I didn't see anything about replacing them. Makes me wonder about your comment about Mesa the other day. One thing about it, I think my flying days are through down there for awhile until all this sorts out. Ireally think Tulsa is on the block if the right buyer can be found. Some big mod outfit with deep pockets and a long term pay as you go contract from AA; Somebody will buy it.
The judge is going to look very hard at the new deal and how the financing is structured because it certainly was planned in conjunction with the Ch 11 filing. This is the first indicator for you know this was already inked as the bankruptcy was planned. They need the $4 Billion on hand for operations, mortgages and leases.
Eagle needs to be recapitalized. AMR is not going to have new capital to do it so better to make a deal at least for the high traffic routes they need to feed them. As government subsidies dry up, the need for these services will contract. Don't be surprised to see them keep the ATR and CRJ routes and dump the ERJs.
Tulsa will be lucky to keep busy given the international competition for this work, particularly D check work. Maybe they need to find the buyer you suggested with enough foresight to find a niche market.
I'll bet you don't wind down on the MD80s for another few years...it takes time to get new A/C and crew conversion. AA leases 176 of their 600+ A/C...much of it will depend on which ones are on lease and the negotiations permitted in the 60 days after filing. They will do sale and lease back on anything useful they own of value but not nailed down.
Eagle needs to be recapitalized. AMR is not going to have new capital to do it so better to make a deal at least for the high traffic routes they need to feed them. As government subsidies dry up, the need for these services will contract. Don't be surprised to see them keep the ATR and CRJ routes and dump the ERJs.
Tulsa will be lucky to keep busy given the international competition for this work, particularly D check work. Maybe they need to find the buyer you suggested with enough foresight to find a niche market.
I'll bet you don't wind down on the MD80s for another few years...it takes time to get new A/C and crew conversion. AA leases 176 of their 600+ A/C...much of it will depend on which ones are on lease and the negotiations permitted in the 60 days after filing. They will do sale and lease back on anything useful they own of value but not nailed down.
Well, if they hang on to the MD's that may save Tulsa, at least for awhile. They have a reman program going up there that is saving AA about $250grand per bird over the open market. It will all be interesting but you are right on one thing, stemming all the way back to the new AC orders, SOMEBODY knows exactly what is going to happen cause this was all well planned out from a while back.
It will be interesting when we see the source financing for the Airbus component. When you have no access to the bond market having just stiffed the bond holders, straw purchasers with "lease" agreements are the only instrument left. They are likely to be pricey when they have you over a barrel.
Been there and done that with some truck line customers. Haven't had many but when you get burned or see them burn somebody, you don't do favors. Kinda like that check last weekend. I got it and into the bank. Any more calls will be pricey and a wire in advance.LOL
Read my frivolous squawk...maybe they will throw in a teenage flight attendant to hug, but then they would probably have to borrow one from Southwest. LOL
I dunno, the BA bunch seems to be doing good all by themselves.LOL
http://finance.yahoo.com/news/ILFC-Secures-SaleLeaseback-bw-46191877.html?x=0&.v=1