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Tuesday, April 14, 2009

Fleet Evolution Begins at American; Overnight News

Ramon Lopez

American Airlines has added the first of 76 new Boeing 737-800s twinjets to its fleet in a move to cut fuel and maintenance costs while offering passengers additional in-flight amenities.

The Boeing 737-800 aircraft, all of which will be based at Chicago’s O’Hare International, will eventually replace, over the next decade, about one-fourth of American's aging fleet of 280 gas-guzzling McDonnell Douglas MD-80s, nearly half of the airline’s 616 aircraft. The major U.S. air carrier already has 77 Boeing 737-800s in revenue service.

The 737-800, which is powered by General Electric/Snecma CFM56-7B turbofans, burns 28 percent less fuel than the MD-80 it will replace, while carrying 20 additional passengers than the 140-passenger MD-80.

"Even as we battle many significant challenges, we must remain focused on our long-term future, which is what these new 737s represent," said Gerard Arpey, chair and CEO of AMR Corp., the parent company of American Airlines and American Eagle.

"While our MD-80s remain an important part of our fleet and continue to serve our company and customers well, our new 737s are a vital investment that will benefit our customers, employees, shareholders and the communities we serve. They will help keep our product competitive while offering cost, environmental and operational benefits.

"With today's economic realities causing many companies, including American, to cut back, we must continue to find ways to control costs and boost revenues. While it is a big decision to spend money on new airplanes, especially in tough times, not doing so could be more expensive in the long run,” Arpey reasons.

American’s Pratt & Whitney JT8D-powered MD-80s have faced additional maintenance issues as they have aged. Last year, American had to ground its entire MD-80 fleet to inspect electrical wiring. The Federal Aviation Administration (FAA) also ordered the airline to inspect many MD-80s for possible fuselage cracks.

The two Boeing 737-800s, which go into service today, are the first of the 76 737-800s that will be delivered through early 2011.

American says it is offering some in-flight perks not provided by rival air carriers.

The two new aircraft were delivered in a business class/coach configuration (16 in business and 144 in the main cabin). Larger overhead bins significantly increase passenger cabin luggage storage capacity. Inflight entertainment is provided by 20 drop-down LCD monitors mounted in passenger service units under overhead storage bins.

The new planes have 110V AC power available to passengers, a first in American’s fleet history and a customer convenience that ends the need for power adapters. Travelers can now plug in laptops and other portable electronic equipment. There is one power port per seat in first class and two ports per three seats in coach. Over time, American plans to equip these aircraft with AirCell's Gogo Inflight Internet service, which will allow passengers to surf the Web, check email, and send instant messages conveniently from the air.

Meanwhile, the two new jetliners are outfitted with blended winglets, similar to those installed on American's in-service 737-800s, providing major operating, fuel efficiency and environmental benefits, such as reduced noise on takeoff and approach and lower emissions through lower cruise flight.

In spite of an increasingly challenging credit market, Arpey noted that American has been fortunate to be able to secure financing commitments to cover the majority of its expected 737 deliveries. "With the financing commitments we have in place, we now have the ability to finance our expected 737 deliveries well into the fourth quarter of 2010, and we continue to pursue a number of additional financing opportunities," he added.

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