US Air orders 20 A350s...

[Full of LUV]

Taxpayers????

How is this possible? That is the problem with airlines. They are broke, bleading money, bankrupt, and ordering billions of dollars worth of planes? What a joke. Who's paying for these airplanes, the tax payers?

How do you think this involves taxpayers? Bankrupt companies get money from investors who lend money at higher rates. There is two things fueling this kind of transaction, first Airbus has more to gain by helping to promote the sale of thier plane, even if they have to help with financing, it's like being on welfare but still getting a Macy's card. Second, if this plane is the wave of the future and will compete with the 787, then leasing companies will buy the plane on US's behalf knowing that if BK comes around again, there will probably be a market for the metal. The real losers are the ones holding paper on virtually worthless A/C like small RJ's or fuel hogging older airplanes, ie 727's in the 90's. Ultimately it just raises the cost of airplane financing for everyone in a way, kind of like if people let their cars be repossesed, it just incrementaly raises the price for the next bad loan. Anyway, I don't see the tax payer connection, unless you are talking about how the EU governments give all kinds of subsidies to Airbus in order to not exacerbate the already high unemployment of the EU nations. But ultimately that is their choice, give corporate welfare to Airbus, or public assistance as unemployment. Traditionally, corporate welfare, just like the real thing, makes the company fat, lazy and uncompetitive, which ultimately can lead to it's failure. We'll see how airbus does in the next decade vs. the 'lazy B".

 

[Doug Parker]

Hey CRZI,

Fuel prices are down, capacity is reduced, TPG was one of our main investors...............

Doug was just trying to "Get Everyone On Board" with nicetalk.

Oh yeah, - it is possible that AWA would have been facing its own Chapter 11 at some point.


Not like US who is/was IN CH11 with no apparent way out.


.

 

[Hamburgler]

Well here's the good news for Boeing:
Boeing scores big order from Hong Kong airline
Another domino has fallen for Boeing, an order with an eventual total list price that's likely to approach $8 billion. It's the latest in a series of recent huge wins that is crushing Airbus in sales of widebody jets.

Hong Kong-based airline Cathay Pacific announced Thursday it will buy a dozen 777-300ERs from Boeing and lease four more from International Lease Finance Corporation (ILFC).

The deal's significance goes well beyond that initial firm order because Cathay also took options to buy 20 more 777s from Boeing. Cathay is a premier Asian airline and it's a safe bet those options will be exercised over time.

"This is a long-term commitment to the continued profitable growth of the airline," Cathay's chief executive Philip Chen said in a statement.

Top-of-the-line 777-300ERs are listed for sale at $250 million, although at least a 30 percent discount is likely from the list prices.

The Cathay win is also strategically significant, as it is the first of three highly anticipated widebody jet orders from that part of the globe.

Singapore Airlines and Qantas of Australia are also weighing large widebody orders and industry sources believe Boeing is favored in those cases too.

Last week, Middle East airline Emirates also went for Boeing against Airbus, ordering 42 long-range 777s, a deal worth $9.7 billion at list prices.

The Emirates and Cathay wins mean that in addition to the successful new 787, Boeing's larger 777 is also a very hot seller, soaring against its Airbus competitor, the A340.

The Boeing jet is a fuel-efficient twin-jet, while the Airbus plane is a four-engine jet. With oil prices so high, that difference is tipping airlines toward Boeing.

So far this year, excluding the Cathay win, Boeing has booked 109 firm new orders for 777s, compared to 14 orders for A340s.

This week's Flight International, a respected industry trade magazine, reported that Airbus is studying a revamp of the A340—with new engines and a lighter aluminum/lithium alloy fuselage that would compete better against the 777.

Such a new derivative would be a major undertaking, similar to the revamp of the 747 recently announced by Boeing. It would further tax the European plane-maker's resources as it strives to get the A380 superjumbo into service while at the same time developing the new A350 that will compete against the 787.

In addition to the big 777 order, Cathay also said Thursday it will acquire three Airbus A330-300s to operate regional routes.

Cathay currently flies 95 aircraft and the fleet will increase to 100 aircraft by next September, its 60th anniversary.

Its long-haul fleet comprises 22 Boeing 747-400, 15 Airbus A340-300 and three Airbus A340-600. The regional fleet comprises 16 Boeing 777-200/300 and 26 Airbus A330-300 aircraft. The airline also operates 13 Boeing 747 freighters.

Later this month, the airline takes delivery of the world's first 747-400BCF (Boeing Converted Freighter), converted from one of its own 747-400 passenger jets. The conversion is a Boeing design, with modifications done by Taikoo (Xiamen) Aircraft Engineering in Xiamen, China.

Cathay has firm orders to convert six such 747s and options for a further six.

 

[PHXFLYR]

Instead of quoting something from the news paper, why don't you quote from the US publication "About US" Interesting answer to the same thing...

Q. I’m an AWA employee and as we integrate​

seniority lists, the AWA employees are going to be
worse off. Why does this have to be when clearly
it wasn’t AWA that needed the merger in order
to survive?
​

A. We’ve not said this as direct as we’re about
to say here, but the reality for the AWA side is
we did need this merger. Any good business is
always looking out into the future, and when
we looked out at our future, what we saw wasn’t
good. Assuming fuel costs continued to rise,
capacity didn’t come out of the system and
thus unit revenues remained depressed, and
assuming we couldn’t go out and restructure
or raise cash, it is possible that AWA would
have been facing its own Chapter 11 at some
point. Employees may like to think we “saved”
US but the fact is we saved each other.



Oh,really?? Just because you tie the Lusitania and the Titanic together,it doesn't neccesarily mean they're gonna float...


PHXFLYR​

​

​

 

[Hamburgler]

Oh,really?? Just because you tie the Lusitania and the Titanic together,it doesn't neccesarily mean they're gonna float...
​

that's hilarious
​

 

[Propsync]

I'm so far a bystander in this it's not funny, but...

Wouldn't you think top management would focus more about squeezing every ounce of efficiency in a newly merged "largest low-cost full service air carrier in the US" company than go out an put in order for more planes, much less ANOTHER fleet type. I realize those airplanes won't be flying for a few years at least, but from the outside it looks like a lack of focus. I'm not on the inside, so please enlighten me.

 

[TWA Dude]

Wouldn't you think top management would focus more about squeezing every ounce of efficiency in a newly merged "largest low-cost full service air carrier in the US" company than go out an put in order for more planes, much less ANOTHER fleet type.

History has shown that airlines are either shrinking or growing. Shrinking doesn't create profits; it merely stems losses. Growing is the only way to increase profits. Our credit line is relatively good right now so it makes sense to use it. Just MHO.

 

[JetMonkey]

much less ANOTHER fleet type.

The good news is that it'll probablly be a common fleet type, so that should keep at least keep training costs down. Keep a look out for a possible EMB-190 order comming soon, now THERE is a totally different fleet.

 

[PHXFLYR]

that's hilarious
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Glad to see you got a chuckle out of it.....



PHXFLYR .....deckhand SS Lusitania