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Old 07-19-2011, 11:24 AM
  #71351  
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Boeing offers to re-engine 737 for AMR - sources

CHICAGO/PARIS, July 19 (Reuters) - Scrambling to rescue a potential $20 billion airplane order from American Airlines parent AMR Corp (AMR.N), Boeing Co (BA.N) has offered to put a new engine in the current version of its 737, retreating from a more ambitious desire to completely redesign its best-selling model, sources said on Tuesday.

If American accepted Boeing's offer to build a re-engined 737, the carrier would become the launch customer for the upgraded narrowbody, which has yet to receive the official green light from Boeing's directors, two sources with knowledge of the talks told Reuters.

A deal is not final as American Airlines is still weighing a generous offer from Boeing's chief rival Airbus, a unit of EADS EADS, which hopes to sell its A320neo -- a re-engined version of its A320 -- to American.

Two sources familiar with the matter predicted a split order, with Airbus and Boeing both gaining a major foothold. Some people familiar with the talks say the order could be for 200 to 300 narrowbodies, but the exact number was unclear and there could be be last-minute changes.

"American is very active with Airbus in talks right now," a senior industry source said, asking not to be identified.

If AMR managers reached an agreement with one or both plane-makers, they would make their recommendation to the company's board of directors at a two-day board meeting that starts on Tuesday.

The company could announce a decision with its quarterly earnings report, due for release on Wednesday. (Additional reporting by Karen Jacobs, editing by Gerald E. McCormick)
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Old 07-19-2011, 11:31 AM
  #71352  
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Originally Posted by DAL 88 Driver View Post
That's an amazing projection of what ACL will look like at age 70!!! How did you do that?!
Hey at least I will still have hair!
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Old 07-19-2011, 11:34 AM
  #71353  
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Originally Posted by acl65pilot View Post
Frankly, I think DAL would be willing to outsource everything below 150 seats. It would save their debt ledger billions in debt service, and reward them with a better credit rating. All of that pesky debt instantly becomes a operational expense and is no longer debt for DAL. Add to this, currently the regional airlines get better financing rates that Ma Delta does.
Actually I think Delta would outsource all domestic flying through either the regionals or a code share.

Delta Inc. Seems to see itself as a manager of resources and not as an airline.
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Old 07-19-2011, 11:36 AM
  #71354  
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Originally Posted by The Chow View Post
Actually I think Delta would outsource all domestic flying through either the regionals or a code share.

Delta Inc. Seems to see itself as a manager of resources and not as an airline.
Not going to argue that at all. 150 seats is the general limit on that. As for the WB International, that would take care of itself in a Transnational merger.
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Old 07-19-2011, 11:43 AM
  #71355  
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Standby.......
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Old 07-19-2011, 11:43 AM
  #71356  
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How did we get to 150 seats?
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Old 07-19-2011, 11:44 AM
  #71357  
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Did we just outsource our bidding system too? I just got a call.....
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Old 07-19-2011, 11:45 AM
  #71358  
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Originally Posted by acl65pilot View Post
Hey at least I will still have hair!
Oh, that hurts !!
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Old 07-19-2011, 11:47 AM
  #71359  
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Originally Posted by MoonShot View Post
Bored today, so I was curious how the reserve guarantee at Delta compared to various carriers.
I got bored and made a chart out of your numbers:

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Old 07-19-2011, 11:50 AM
  #71360  
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Contract comparison is out on the ALPA website...
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