https://www.channelnewsasia.com/new...planes-is-us-airlines-737-max-summer-11443880
World Too many travellers, too few planes is US airlines' 737 MAX summer dilemma
Employees walk by the end of a 737 Max aircraft at the Boeing factory in Renton, Washington. (Photo: Reuters/Lindsey Wasson)
14 Apr 2019 11:05PM (Updated: 15 Apr 2019 11:32AM)
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CHICAGO: Normally, US airlines compete to sell tickets and fill seats during the peak summer travel season. But operators of the grounded Boeing 737 MAX are facing a different problem: Scarce planes and booming demand.
The grounding of Boeing Co's fuel-efficient, single-aisle workhorse after two fatal crashes is biting into US airlines' Northern Hemisphere spring and summer schedules, threatening to disarm them in their seasonal war for profits.
"The revenue is right in front of them. They can see it, but they can't meet it," said Mike Trevino, spokesman for Southwest Airlines Pilots Association and an aviation industry veteran.
Southwest Airlines Co, the world's largest MAX operator, and American Airlines Group Inc with 34 and 24 MAX jetliners respectively, have removed the aircraft from their flying schedules into August.
Southwest's decision will lead to 160 cancellations of some 4,200 daily flights between Jun 8 and Aug 5, while American's removal through Aug 19 means about 115 daily cancellations, or 1.5 per cent of its summer flying schedule each day.
Low-cost carrier Southwest, which unlike its rivals only flies Boeing 737s, had estimated US$150 million in lost revenue between Feb 20 and Mar 31 alone due to MAX cancellations and other factors.
So far airlines have said it is too soon to estimate the impact of the MAX grounding beyond the first quarter, but the extended cancellations signal that they do not expect a quick return of Boeing's fast-selling jetliner.
The 737 MAX was grounded worldwide in March following a fatal Ethiopian Airlines crash just five months after a Lion Air crash in Indonesia. All on board both planes were killed.
Boeing is under pressure to deliver an upgrade on software that is under scrutiny in both crashes and convince global regulators that the plane is safe to fly again, a process expected to take at least 90 days.
The timing of a prolonged grounding could not be worse for Northern Hemisphere carriers. Planes run fullest during June, July and August, when airlines earn the most revenue per available seat mile, according to US Bureau of Transportation Statistics.
In a letter to employees and customers on Sunday (Apr 14), American Airlines' top executives said they believed the MAX would be recertified "soon" but wanted to provide their customers reliability and confidence during "the busiest travel period of the year."
American was cancelling about 90 flights per day through early June, but runs more flights and has less fleet flexibility in the peak summer travel months.
"We're not denying that it's going to be a challenge for us," American spokesman Ross Feinstein said. "That is why if we have to extend cancellations based on aircraft availability we will do so as far in advance as possible."
A decline in seat capacity could mean higher last-minute summer fares, particularly for business class travellers, aviation consultants and analysts said.
United Airlines, with 14 MAX jets, has largely avoided cancellations by servicing MAX routes with larger 777 or 787 aircraft, but the airline president, Scott Kirby, warned last week that the strategy was costing it money and could not go on forever.
Overall the MAX represents just 5 per cent of Southwest's total fleet and even less for American and United, but the strain on fleets increases as additional MAX deliveries remain frozen.
Southwest has 41 MAX jets pending delivery for 2019, while American has 16 and United 14.
To compensate, global MAX operators have added a flight or two to other aircrafts' daily schedules and deferred some non-essential maintenance work. Some airlines are also weighing extending aircraft leases and bringing back idled planes, but with unclear MAX timing, no option is clear-cut or cheap, consultants said.
United is due to publish first-quarter results on Apr 16, followed by Southwest on Apr 25 and American on Apr 26.
Source: Reuters/zl
https://www.straitstimes.com/world/...ines-to-cancel-115-flights-daily-over-737-max
American Airlines to cancel 115 flights daily over 737 Max
An American Airlines Boeing 737 Max 8 flight from Los Angeles taxis after landing at Reagan National Airport. PHOTO: REUTERS
Published
Apr 15, 2019, 10:34 am SGT
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WASHINGTON (AFP) - American Airlines announced on Sunday (April 14) that it would scrap some 115 flights per day in the coming months because its fleet of Boeing 737 Max planes is being grounded until Aug 19.
America's leading airline had previously planned to keep the planes out of commission only until June 5, with Boeing facing intense scrutiny after 157 people died in an Ethiopian Airlines 737 Max crash on March 10 - the second deadly crash involving the aircraft in five months.
The global fleet of 737 Max planes has been barred from flying since mid-March.
"These 115 flights represent approximately 1.5 per cent of American's total flying each day this summer," American Airlines chairman and chief executive officer Doug Parker said in a statement.
But he stressed his confidence in the aircraft overall.
"Based upon our ongoing work with the Federal Aviation Administration (FAA) and Boeing, we are highly confident that the Max will be re-certified prior to this time (Aug 19)," he said.
"By extending our cancellations through the summer, we can plan more reliably for the peak travel season and provide confidence to our customers and team members when it comes to their travel plans.
Related Story
List of nations that have grounded Boeing 737 Max
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US pilots complained at least 5 times about Boeing 737 Max problems, records show
"Once the Max is re-certified, we anticipate bringing our Max aircraft back on line as spares to supplement our operation as needed during the summer."
American Airlines had lowered one of its first quarter indicators in light of the Boeing 737 Max 8 planes being grounded, along with the partial US government shutdown and technical challenges.
Earlier this week, competitor Southwest Airlines said it would operate its 34 aircraft of the same model, starting on Aug 5.
Related Stories:
World Too many travellers, too few planes is US airlines' 737 MAX summer dilemma
Employees walk by the end of a 737 Max aircraft at the Boeing factory in Renton, Washington. (Photo: Reuters/Lindsey Wasson)
14 Apr 2019 11:05PM (Updated: 15 Apr 2019 11:32AM)
Share this content
Bookmark
CHICAGO: Normally, US airlines compete to sell tickets and fill seats during the peak summer travel season. But operators of the grounded Boeing 737 MAX are facing a different problem: Scarce planes and booming demand.
The grounding of Boeing Co's fuel-efficient, single-aisle workhorse after two fatal crashes is biting into US airlines' Northern Hemisphere spring and summer schedules, threatening to disarm them in their seasonal war for profits.
"The revenue is right in front of them. They can see it, but they can't meet it," said Mike Trevino, spokesman for Southwest Airlines Pilots Association and an aviation industry veteran.
Southwest Airlines Co, the world's largest MAX operator, and American Airlines Group Inc with 34 and 24 MAX jetliners respectively, have removed the aircraft from their flying schedules into August.
Southwest's decision will lead to 160 cancellations of some 4,200 daily flights between Jun 8 and Aug 5, while American's removal through Aug 19 means about 115 daily cancellations, or 1.5 per cent of its summer flying schedule each day.
Low-cost carrier Southwest, which unlike its rivals only flies Boeing 737s, had estimated US$150 million in lost revenue between Feb 20 and Mar 31 alone due to MAX cancellations and other factors.
So far airlines have said it is too soon to estimate the impact of the MAX grounding beyond the first quarter, but the extended cancellations signal that they do not expect a quick return of Boeing's fast-selling jetliner.
The 737 MAX was grounded worldwide in March following a fatal Ethiopian Airlines crash just five months after a Lion Air crash in Indonesia. All on board both planes were killed.
Boeing is under pressure to deliver an upgrade on software that is under scrutiny in both crashes and convince global regulators that the plane is safe to fly again, a process expected to take at least 90 days.
The timing of a prolonged grounding could not be worse for Northern Hemisphere carriers. Planes run fullest during June, July and August, when airlines earn the most revenue per available seat mile, according to US Bureau of Transportation Statistics.
In a letter to employees and customers on Sunday (Apr 14), American Airlines' top executives said they believed the MAX would be recertified "soon" but wanted to provide their customers reliability and confidence during "the busiest travel period of the year."
American was cancelling about 90 flights per day through early June, but runs more flights and has less fleet flexibility in the peak summer travel months.
"We're not denying that it's going to be a challenge for us," American spokesman Ross Feinstein said. "That is why if we have to extend cancellations based on aircraft availability we will do so as far in advance as possible."
A decline in seat capacity could mean higher last-minute summer fares, particularly for business class travellers, aviation consultants and analysts said.
United Airlines, with 14 MAX jets, has largely avoided cancellations by servicing MAX routes with larger 777 or 787 aircraft, but the airline president, Scott Kirby, warned last week that the strategy was costing it money and could not go on forever.
Overall the MAX represents just 5 per cent of Southwest's total fleet and even less for American and United, but the strain on fleets increases as additional MAX deliveries remain frozen.
Southwest has 41 MAX jets pending delivery for 2019, while American has 16 and United 14.
To compensate, global MAX operators have added a flight or two to other aircrafts' daily schedules and deferred some non-essential maintenance work. Some airlines are also weighing extending aircraft leases and bringing back idled planes, but with unclear MAX timing, no option is clear-cut or cheap, consultants said.
United is due to publish first-quarter results on Apr 16, followed by Southwest on Apr 25 and American on Apr 26.
Source: Reuters/zl
https://www.straitstimes.com/world/...ines-to-cancel-115-flights-daily-over-737-max
American Airlines to cancel 115 flights daily over 737 Max
Published
Apr 15, 2019, 10:34 am SGT
Facebook Twitter Email
WASHINGTON (AFP) - American Airlines announced on Sunday (April 14) that it would scrap some 115 flights per day in the coming months because its fleet of Boeing 737 Max planes is being grounded until Aug 19.
America's leading airline had previously planned to keep the planes out of commission only until June 5, with Boeing facing intense scrutiny after 157 people died in an Ethiopian Airlines 737 Max crash on March 10 - the second deadly crash involving the aircraft in five months.
The global fleet of 737 Max planes has been barred from flying since mid-March.
"These 115 flights represent approximately 1.5 per cent of American's total flying each day this summer," American Airlines chairman and chief executive officer Doug Parker said in a statement.
But he stressed his confidence in the aircraft overall.
"Based upon our ongoing work with the Federal Aviation Administration (FAA) and Boeing, we are highly confident that the Max will be re-certified prior to this time (Aug 19)," he said.
"By extending our cancellations through the summer, we can plan more reliably for the peak travel season and provide confidence to our customers and team members when it comes to their travel plans.
Related Story
List of nations that have grounded Boeing 737 Max
Related Story
US pilots complained at least 5 times about Boeing 737 Max problems, records show
"Once the Max is re-certified, we anticipate bringing our Max aircraft back on line as spares to supplement our operation as needed during the summer."
American Airlines had lowered one of its first quarter indicators in light of the Boeing 737 Max 8 planes being grounded, along with the partial US government shutdown and technical challenges.
Earlier this week, competitor Southwest Airlines said it would operate its 34 aircraft of the same model, starting on Aug 5.
Related Stories:
