AA buying A320's

[uba757]

Reuters reporting that AA is making decision as early as next month to buy up to 100 A320's to replace MD80's and 757's, I thought AA was replacing the MD80's with B737ng's. I never saw this one coming! uba757

 

[waveflyer]

Wed, June 22, 2011. 840EDT
(Reuters) - AMR Corp's (AMR.N) American Airlines, the operator of an all-Boeing (BA.N) jet fleet, is in talks with Airbus (EAD.PA) about buying at least 100 narrow-body planes, Bloomberg reported, citing people familiar with the matter.

A decision by the board of AMR, the third-largest U.S. carrier, may come as soon as July, the report said, adding that the jets from Airbus's A320 series would replace less-efficient aircraft such as Boeing 757s and MD-80s.

An A320 has a list price of $85 million, giving a potential American order a value of about $8.5 billion, according to the report.

Representatives of American Airlines and Airbus were not available for comment outside of U.S. business hours.

(Reporting by Tenzin Dekeva in Bangalore; Editing by Steve Orlofsky)

 

[Outta Here]

Why not just say they are going to buy JB instead. The next acquisition/ merger.

 

[Helos2Galaxy]

.... is in talks hardly means an order.

 

[DUBLINFLYER]

what happened to buying "American" built aircraft, we need the jobs as bad as the europeans, maybe AA should live up to their name American Airlines and buy from Boeing


this is not a paid advertisement

 

[xkuzme1]

what happened to buying "American" built aircraft, we need the jobs as bad as the europeans, maybe AA should live up to their name American Airlines and buy from Boeing


this is not a paid advertisement

agreed!

 

[ImbracableCrunk]

Maybe Boeing should get off the pot and figure out what the hell it's doing with the next narrow-body.

 

[SLUF4]

what happened to buying "American" built aircraft, we need the jobs as bad as the europeans, maybe AA should live up to their name American Airlines and buy from Boeing


this is not a paid advertisement

They've already had A300's in the past-it's nothing new

 

[Cpt Oveur]

They have to talk to Airbus if they're going to try and squeeze Boeing for a better price. This is exactly what they've always done when they've placed a big order.

 

[WalterSobchak]

Maybe Boeing should get off the pot and figure out what the hell it's doing with the next narrow-body.

Bingo.

Airbus is doing brisk business with the A320NEO at the Paris Air Show this week. Boeing, meanwhile, is still waffling around on what to do. No doubt, Boeing will come up with something...but, the competition's narrow-body order book is being padded at the expense of their indecision.

 

[ImbracableCrunk]

http://www.reuters.com/article/2011/06/23/airshow-idUSLDE75M11420110623

The answer is:

Airbus reported orders for 910 aircraft worth $88 billion at list prices. Boeing announced 141 planes worth $22.5 billion.

"What is complete and total management failure at Boeing, Alex?"

 

[sleeves]

what happened to buying "American" built aircraft, we need the jobs as bad as the europeans, maybe AA should live up to their name American Airlines and buy from Boeing


this is not a paid advertisement

Boeing is a global company. They outsourse to the lowest bidder. American corporations do not have any aligients to Americans. This is why the trickle down theories of economics do not work for American workers.

 

[Dan Roman]

what happened to buying "American" built aircraft, we need the jobs as bad as the europeans, maybe AA should live up to their name American Airlines and buy from Boeing


this is not a paid advertisement

Maybe because in America we have something called capitalism and airlines have to operate the A/C that has the lowest costs for them and fits their operation best.. They have to go with the best deal they can get or perish.

 

[Smarta$$]

Boeing is a global company. They outsourse to the lowest bidder. American corporations do not have any aligients to Americans. This is why the trickle down theories of economics do not work for American workers.

So true.

 

[macdu]

I just got the recall call yesterday. I am deferring but it would be nice to go back to an airplane I have been on for the last 7 years instead of a 80.

 

[ATLplt]

Boeing is a global company. They outsourse to the lowest bidder. American corporations do not have any aligients to Americans. This is why the trickle down theories of economics do not work for American workers.

Bingo!

 

[waveflyer]

Maybe because in America we have something called capitalism and airlines have to operate the A/C that has the lowest costs for them and fits their operation best.. They have to go with the best deal they can get or perish.

Capitalism is a very American ideal- however think about what you just wrote- Airbus is subsidized by euro govts. Is that capitalism skewed, upon the skew of oligopolism that already exists.
So... Go ahead- entertain an offer- but if it's a remote tie- we ought to support boeing.

 

[Dan Roman]

Capitalism is a very American ideal- however think about what you just wrote- Airbus is subsidized by euro govts. Is that capitalism skewed, upon the skew of oligopolism that already exists.
So... Go ahead- entertain an offer- but if it's a remote tie- we ought to support boeing.

My point is that capitalism in America could care less what's right or wrong, it's just the bottom line that counts. I'm not defending it, it just is what it is. I'm not bashing it either, it has many benefits too. It beats the alternative but it certainly isn't perfect.

 

[Dan Roman]

Boeing is a global company. They outsourse to the lowest bidder. American corporations do not have any aligients to Americans. This is why the trickle down theories of economics do not work for American workers.

I most certainly agree with this post. But the simple fact is an airline has to go with the best deal available or perish. If they paid more for Boeing's or if Boeing's had a higher operating cost but AMR went with them anyway for "patriotic" reasons, they would ultimately probably cost a lot of American jobs when the competition killed them.

 

[waveflyer]

Then our govt needs to level the playing field bc Boeing needs to compete with a company getting all kinds of help. Do you support that, dan?
It's just frustrating that the middle class stays stagnant as our rich get richer making false globalization arguments that American workers need to be competitive- as if we'll ever compete with labor from countries w/ impoverished people with suppressed rights.

 

[JFReservist]

My point is that capitalism in America could care less what's right or wrong, it's just the bottom line that counts. I'm not defending it, it just is what it is. I'm not bashing it either, it has many benefits too. It beats the alternative but it certainly isn't perfect.

That's not entirely true... people actually do care about quality. Look at the the tech sector... you can buy a crappy netbook or go buy an 11 inch MacBook Air. The price difference is well over 300% - same with cell phones. Capitalism and (more importantly) the Free Market have allowed us to innovate and produce amazing things - all driven by the ability to profit from innovation, which is (despite what most people believe) reinvested back into said companies to further compete in the free market. Another case in point is the p/u truck market (the age old Ford v. Chevy v. Dodge debate). Ford continues to outsell both in this market, while continuing to offer products that are 10-15% higher in price for comparable models.

As for the airlines, I've become convinced that people would pay (a bit) more for better service (the whole concept - from buying the ticket to picking up your bags at the end of a trip) as opposed to just buying the cheapest ticket on travelocity. They are hampered by at least two things - the availability of services in their market, and the perception that it doesn't matter who I fly, its all the same crappy service model.

Wave is correct, it is hard for a free market to truly and equitably compete against gov't subsidized products. Boeing's price points are higher on most offerings due to this and (yes, I'm going to say it) pi$s poor management and constrained labor factors.

The great news is that hopefully, our friends at AA are getting back into the game with a renewed focus and vigor, which is great for all of us in the long run and for the consumer who pays the bills!

Fly safe gents (and ladies!)

 

[JFReservist]

Dan - sorry, just re-read your post. Disregard - I was thinking of the consumer. Apologies. I could spend another few minutes replying (although I agree with some of your positions, but will always defer to an unconstrained free market) - I think I'm going to get another cup of coffee and go swim!

Cheers

 

[tomgoodman]

Airbus is subsidized by euro govts.

That's true. Their counter-argument is that Boeing has been subsidized for decades by the U.S. government, via military contracts. International subcontracting and co-production also complicate the "subsidy" question.

 

[ROSWELL41]

I've heard that the A320 has as many American-made components as the 787.

 

[Bringupthebird]

Boeing preferred to bow to SWA's demands on the 737 instead of spending time building a clean-sheet design that could wipe up the Airbus. Short-term mentality.

 

[ImbracableCrunk]

Airbus gets 910 orders at one airshow. Is SWA really that important, Boeing?

 

[Dan Roman]

Dan - sorry, just re-read your post. Disregard - I was thinking of the consumer. Apologies. I could spend another few minutes replying (although I agree with some of your positions, but will always defer to an unconstrained free market) - I think I'm going to get another cup of coffee and go swim!

Cheers

No worries, I'm having a cup of coffee and going for a surf (3rd day of the 1st good town swell of the summer!)
Wave, we agree on lot, your question is way to complex for an easy answer here. The whole subsidy thing could be a very slippery slope with airliners given just how truly international and multi layered the airline/airliner business is, WAAAY over my head to try and come up with a solution.
Your other point, it truly sucks what is happening to the middle class by the inherent greed of people masking it as free enterprise, in that respect we need more Government, not less. I also believe in free enterprise, you just have to look around this country to see how great our system is. But trickle down economics is a joke, it's there so a few can steal from the middle class, it doesn't work. We need government regulations to protect society.

 

[Bringupthebird]

Show how that has had the desired effect ANY time it has been tried!

The problem is that the middle class thinks and spends as if they are rich. No one will realistically admit how poor they really are. The housing collapse is proof enough for that.

 

[Quimby]

Show how that has had the desired effect ANY time it has been tried!

The problem is that the middle class thinks and spends as if they are rich. No one will realistically admit how poor they really are. The housing collapse is proof enough for that.

^^^^^
What he said.

 

[smoknjoe]

I just got the recall call yesterday. I am deferring but it would be nice to go back to an airplane I have been on for the last 7 years instead of a 80.
....Are you nuts? Are you really counting on hanging on "here"? .. Take care.. Joe...