AirTran Delays 18 737's

[boknowsASA]

AirTran Airways Defers 18 Boeing Aircraft Deliveries
Friday May 30, 12:53 pm ET - 18 Boeing 737-700s Scheduled for Delivery 2009-2011 Deferred to 2013 and 2014 -
ORLANDO, Fla., May 30 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), announced today that it will defer 18 Boeing 737-700 aircraft originally scheduled for delivery between 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 percent to no more than flat. This transaction will accomplish a substantial portion of that plan," said Bob Fornaro, AirTran Airways' President and CEO. "We appreciate the support of Boeing in this action as a part of their commitment to our long-term success."
The airline currently operates 54 Boeing 737-700 series aircraft as well as 87 Boeing 717-200 aircraft, and has America's youngest all-Boeing fleet. The Boeing 737 is the world's most popular jet aircraft. The AirTran Airways' Boeing 737 seats 137 passengers and is equipped with premium Recaro seats in the airline's signature two-by-two award-winning Business Class (12 seats) and coach seats (125 seats), with free XM Satellite Radio. Similar to the Boeing 717, the Boeing 737 aircraft features EasyFit overhead bins with plenty of storage space for passengers' carry-on bags.

 

[fam62c]

I don't know if this really has any significance. AAI and JBLU are being smart here by not expanding in this environment, however, nobody can see the future. They are doing the prudent thing here but if things were to improve and they saw opportunities for profitable growth they would move these deliveries up just as quickly as they have deferred them. Boeing and Airbus want to sell planes so I'm sure they would be happy to let these airlines move deliveries up.

I'm just hoping that things don't get much worse before they start to get better. Once you stop growing, shrinking is the next step. AAI and JBLU could easily decide to sell off/sublease some planes that are already in the fleet to reduce capacity and get out of some of their biggest money losing routes if conditions don't improve. They both have new, fuel efficient planes that are probably in demand in other parts of the world. One advantage that I see in both AAI and JBLU is that they operate efficiently and have fleets that are flexible. If they can survive this and outlive some of the higher cost airlines they will be the first to grow and prosper in any upturn because they can be profitable at fuel price levels that will cause large losses at their legacy competitors.

It's about survival and being able to pay the bills at this point; when the cash is gone it's lights out. Hopefully that doesn't happen because these are two well run corporations that are, unfortunately, stuck in a horrible industry.

 

[On Your Six]

Makes a lot of sense financially. Sucks for anyone within range of upgrading....

 

[scarlet]

It will suck for everyone in the industry, looking to upgrade anywhere...

Airtran I believe has many people in the training dept. that are retired, but are instructors. I believe they are keeping them on board at 25 hours a month guart. at around 70.00 hr. It is a waste of money !!!! There are line pilots that can train in the small sims, and classrooms!!

It is time to be smart and not waste a dime!!!

15 guys making 1500.00 a month is money the company needs to keep =26,500.00 a month?? Not alot but it helps...

 

[scarlet]

Need to cut down on hotel stays.. I know DAL/CAL run alot of day lines, for this reason...

Airtran=ALOT of 4 DAYS=Alot of money at hotels !!!

 

[Fubijaakr]

AAI and B6 are BOTH smarter than VA. Those clowns are committed to expansion!

Hopefully, that philosophy will put them out of business soon.

 

[T3700]

Don't worry about FO pay, you'll all be Captains in 2 1/2 years!

 

[Secret Squirrel]

Don't worry about FO pay, you'll all be Captains in 2 1/2 years!

Thank god! I am glad that they are still saying this. I was afraid they would start saying upgrades would get longer. So no need to try to get higher FO rates. We can use all our energy on higher Capt pay, reduction in reserve rules and giving up all sorts of QOL issues.

 

[maxblast72]

Don't worry about FO pay, you'll all be Captains in 2 1/2 years!

AP is now telling guys they will upgrade in 2 1/2 years. Last I heard, he said everyone on the property would be Captain in 3 years. But then again, numbers were never his game. At leasts MB is very numbers oriented guy. Hopefully, he gives us some numbers on the all pilot conference call after he and the board have their financial meeting with the company next week. I kind of feel we are being left in the dark about how things are going.