Airtran defers Boeings

[BLUE BAYOU]

DOW JONES NEWSWIRES

AirTran Holdings Inc.'s (AAI) AirTran Airways will defer the delivery of 18 Boeing Co. (BA) 737-700 aircraft, becoming the latest carrier to scale back plans for growth as fuel prices continue to rise.
The discount carrier will defer the aircraft delivery, originally scheduled for 2009 through 2011, to 2013 through 2014.
"As we stated during our first-quarter earnings call, as a result of continuing record high fuel costs, we are reducing planned growth for September 2008 through at least 2009, from 10% to no more than flat," Chief Executive Bob Fornaro said. "This transaction will accomplish a substantial portion of that plan."
Earlier this week, JetBlue Airways Corp. (JBLU), in a bid to preserve liquidity and slow its capacity growth, said it would defer deliveries of 21 Airbus jetliners for as long as five years, reducing the number of new A320s it will take into its fleet to 11 between next year and 2011.
At the end of April, AirTran closed a public offering of debt and equity securities in a move to improve its financial flexibility and combat record-high fuel costs after reporting it swung to a first-quarter loss of $34.8 million.
The airline currently operates 54 Boeing 737-700 series aircraft as well as 87 Boeing 717-200 aircraft.
Shares traded recently at $2.98, down 1.97%
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; [email protected]

(END) Dow Jones Newswires
05-30-08 1337ET
Copyright (c) 2008 Dow Jones & Company, Inc.

 

[Draginass]

AA could sure use those airplanes to replace some Mad Dogs.

 

[SFR]

Idiots

 

[General Lee]

AA could sure use those airplanes to replace some Mad Dogs.

AA is losing $3.4 million a day thanks to all of the 37 seat ERJ-135s flying at Eagle in the NE. I don't think they could afford it right now.


Bye Bye--General Lee

 

[AAflyer]

AA is losing $3.4 million a day thanks to all of the 37 seat ERJ-135s flying at Eagle in the NE. I don't think they could afford it right now.


Bye Bye--General Lee

Actually we can, it will be 737-800s at a rate of 3 a month starting in Jan. 2009.

Our ASMS being flown by Eagle is small compared to DAL. We are ALL losing money right now, however the cost of dumping the 80 to replace to 737 will pay for the lease in fuel savings alone.


AAflyer

P.S. Hopefully you guys pull off a raise shortly in the merger. Just do not go selling SCOPE for it like you did in 2000.

 

[conman]

General Lee,

I'm not into this my airline is better than your airline nonsense. With that said I believe you will find that the regional partners of DAL fly a greater portion of Delta's schedule compared to American Eagle over at American.

 

[General Lee]

General Lee,

I'm not into this my airline is better than your airline nonsense. With that said I believe you will find that the regional partners of DAL fly a greater portion of Delta's schedule compared to American Eagle over at American.

I saw on CNBC that AMR was losing $3.4 million a day. I surmised that one reason was because of all of the very unprofitable ER3s flying on the East Coast---clogging the system, not bringing in as much revenue as even a 50 seater, which is known not to bring in very much revenue at all. Did I say anything that was wrong? Nope. Did I make fun of anyone? No. AMR isn't doing very well, and EXTRA airplane orders (above what they have ordered already) probably isn't in the cards. Got it everyone? I didn't say "Delta is better than AA"---no I didn't.


Bye Bye---General Lee

 

[Ty Webb]

Uhh . . I'm just a lowly yoke-and-throttle operator, but how does a thread about AAI deferments creep into an AMR vs. DAL RJ outsourcing discussion IN THE FIRST PAGE?

Seems like you dudes need your own string . . Copy?

Or are we going to have to open a can of "thread creep whup-ass" on you? :laugh:

 

[General Lee]

Uhh . . I'm just a lowly yoke-and-throttle operator, but how does a thread about AAI deferments creep into an AMR vs. DAL RJ outscoursing discussion IN THE FIRST PAGE?

Seems like you dudes need your own string . . Copy?

Or are we going to have to open a can of "thread creep whup-ass" on you? :laugh:

Ty,

This thread isn't the one you want to keep going. It isn't really a "feel good" thread for you guys. Letting it go off on a tangent might be a good thing.


Bye Bye--General Lee

 

[Kenney G]

Hope the fo pay goes way up!

 

[Lear70]

Or are we going to have to open a can of "thread creep whup-ass" on you? :laugh:

Save the can for the next dumb*ss who tries to say we should give up Scope for a 3% pay raise...

Personally, this is the worst news for the bottom half of the seniority list to come down the pike yet this year... Hope they all understand the need to buckle down and support the NPA for every dime they can get in a new and improved contract...

 

[Colonel Savage]

... Hope they all understand the need to buckle down and support the NPA for every dime they can get in a new and improved contract...

Was this announcement part of a negoiation tactic?

 

[CatfishVT9]

No surprise here. This is the plan we've known about for the last month.

 

[Lear70]

Was this announcement part of a negoiation tactic?

Who's to say, but it certainly doesn't help THEIR position, either.

I fully expect them to cry poor with last quarter's loss (even though the 2nd and 3rd quarters should offset that quite a bit), but the truth is that senior management continues to give their own raises and record bonuses, and the line employees are ENTITLED to AT LEAST raises equal to or better than Cost of Living as a NORMAL COST OF DOING BUSINESS for an airline, and really, any company in general.

The facts that hurt management are simple:

1. Quick upgrades were a reason a lot of pilots hired in the last 3 years came to airTran rather than wait for a Legacy. Those upgrades are gone. Legacy hiring is gone for now as well, so now those F/O's have NO CHOICE but to fight to make airTran a better career for themselves.

2. The airTran F/O pay scale is one of the worst in the industry. No one expected to nor wants to stay on it for 6-8 years.

3. The company WILL return to profitability as fare increases stick. It's already working, it's just a slow process. Knowing that, every pilot needs to keep their eye on the ball LONG-TERM.

Lastly, and I said this during negotiations which really angered senior management: the First Officers and Junior Captains at this airline CONTROL THE VOTE. NOTHING is going to get ratified without them on board.

I'm very grateful for the senior Captains who helped, and it would have been MUCH closer of a vote on the last T.A. without them, but the simple numbers cannot be argued and, as more and more junior pilots realize we were right about upgrade times and career expectations, I would hope more and more of them are willing to hold out for "Current book plus COLA or better"; especially the ones who have been hired since T.A. 2 was turned down who have benefited from us saying no to a 20% pay cut for them.

It's going to be spun a different way by management, and I can only hope our union leaders will come out strong with communication that keeps the pilots strong and focused on a contract WORTH making airTran a CAREER, and not just another stepping stone.

 

[PCL_128]

This thread isn't the one you want to keep going. It isn't really a "feel good" thread for you guys. Letting it go off on a tangent might be a good thing.

Actually, I feel pretty good about it. It means that our management is doing the smart thing and taking steps that will keep our head above water during this downturn. This is a smart move.