AA to retire dozens of 737s, releasing more feedstock

[caption id="attachment_413583" align="alignright" width="460"] AA plans to retire all seventy-six of its older 737-800s, as well as nine A330-300s and twenty E190s. (Photo: American Airlines)[/caption] American Airlines is reportedly planning to retire seventy-six 737-800s, nine A330-300s and twenty E190s in light of the COVID-19 crisis, making a large batch of potential conversion feedstock available. American Airlines President Robert Isom shared the plans during a video session with employees during the weekend, according to Reuters. Although no precise timeline for the retirements was given, Isom said new deliveries of 737 MAX aircraft, which are expected to recommence once the type is recertified by the Federal Aviation Administration (FAA), would enable the withdrawal of older jets. Boeing previously said it estimates the ungrounding of the MAX to begin in mid-2020. The seventy-six 737-800s were all delivered new to American between early 1999 and late 2001, most owned by AA itself. The airline’s newer tranche of 737-800s, consisting of 228 units, were delivered between 2009 and 2017. The nine A330-300s are all around twenty years old. While much depends on how quickly AA decides to remove the seventy-six 737-800s from its fleet, the move could alleviate the tight feedstock situation the conversion market has been experiencing with 737NGs. This has been particularly evident in the last year, as the March 2019 grounding of the MAX resulted in operators holding onto their NGs for longer than anticipated, leading to a renewed interest in 737 Classic conversions. Prior to the release of the Reuters report, advisory and valuation firm IBA Group told Cargo Facts that American had planned to retire its older 737s before the MAX issues came into play; it was assumed these frames would be converted into freighters, given AA’s precedents with its older 757 and 767 aircraft. But IBA noted that it wasn’t expecting a substantial change in 737-800F and A321F feedstock or lease rates in the wake of the COVID-19 pandemic, saying the current lease rate for a 737-800F is still approximately $200,000-$220,000 a month. IBA wasn’t immediately available to comment on whether it had changed its outlook in light of the news of AA’s latest decision. American Airlines has already announced it will ground all sixteen of its 767-300s in May 2020, and begin to remove its thirty-four remaining 757-200s between May and the end of summer 2021, at the latest, which could provide the freighter market with still more feedstock candidates. Cargo Facts Asia 2020 will be held on April 21-22, as a virtual event, continuing its keen focus on the Asia market. Although the event will look much different, the excellent content will remain the same, with the best and brightest minds addressing the most pressing industry issues for Asia Pacific — including those around COVID-19. To register and for more information, visit www.cargofactsasia.com .

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Express appetite for 777F eclipses 747-400F fleet

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