American Airlines Group Inc is set to sharply increase the number of jets it is planning to retire beyond its announced plans as it accelerates a fleet transformation to respond to the coronavirus crisis, people familiar with the matter said.
The plans were announced by President Robert Isom in a video Q&A with employees on Sunday, where he said the arrival of new Boeing 737 MAX jets, expected later this year after a prolonged global grounding, could help facilitate the retirement of older jets that would be in need of heavy maintenance.American said on March 12 it was accelerating the retirement of its remaining Boeing 757s and 767s as it looks at removing older, less fuel-efficient aircraft from its fleet.
The pace of aircraft retirements influences an airline’s cost structure since new aircraft are costly to buy but cheaper to run. It also gives a clue to potential future demand for new aircraft. But decisions by airlines to retire planes in 2020 and 2021 could trim that surplus, Ascend by Cirium consultancy head Rob Morris told an Airline Economics webinar on Friday.
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