Tue, Jul 05, 2011
Looking To Replace Older, Less Efficient Aircraft With Newer
Airbus, Boeing Models
The recent surge in commercial jetliner orders, particularly for
the Airbus A320neo at the Paris Air Show, may be just the tip of
the iceberg as U.S. airlines reportedly are prepping major fleet
upgrades. Fuel economy would appear to be at the root of the plans
to transition out of older airplanes.
A320neo Computer Rendering
And Boeing may come up on the short end of the stick. Reuters
reports that American Airlines, which currently flies an all Boeing
primary fleet, is considering an order for as many as 250
narrow-body airplanes split between the U.S. planemaker and its
principal rival Airbus. Other deals reported to be in the works are
a 200 airplane order from Delta, and Southwest is also said to be
looking at "refleeting." Of the major hub-and-spoke carriers,
only US Airways says it does not have some kind of fleet upgrade
plans on the drawing board. That major carriers are eyeing new
airplanes is really not surprising, according to AVITAS VP Adam
Pilarski. "Eventually, they have to do it," he told the news
service.
American is still flying nearly 250 older MD-80s, along with
about half that many older model 737s. And while Airbus is scooping
up orders for its re-engined A320neo, Boeing is still dithering
over whether to re-power the 737 or replace it completely. Analysts
say that could put the U.S. company at a competitive
disadvantage.
B737NG Production Line
Analyst Michael Boyd said that Airbus basically ate Boeing's
lunch as it announced major order after major order for A320 neos
at Paris, ending with a total of over $50 billion in commitments
for the plane. And consultant Bob Mann of RW Mann & Co. told
Reuters that airlines, even U.S. carriers, may not have the
patience to wait while Boeing looks at the re-engine vs new
airplane options for the workhorse 737.
Still, Pilarski said that neither company was ever going to win
all the orders. He said neither planemaker could produce that many
aircraft in the time frame in which airlines will demand them.
Boeing's Jim Albaugh said at the Paris Air Show that the company
hopes to have a final decision about what comes after the current
737 by the end of the year.
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