Airlines to scrap $1.3bn worth of aircraft

[Fluckbynight]

From todays Sunday Times[with apalogies to those who don't like newspaper articles on this site]. .. .Airlines scrap planes worth $1.3bn. .Dominic O’Connell. . . . . . . .AIRLINES will be forced to scrap planes worth $1.3 billion (£910m) that were grounded during the traffic downturn caused by the September 11 terrorist attacks. . .Research by Boeing, the aircraft maker, reveals that two-thirds of the 2,000 planes grounded after the attacks — about 1,300 — will not return to the skies. They are likely to be used for spares or scrapped altogether. . .. .Airline analysts said the aircraft would be worth about $1m each as scrap but could be on the airlines’ books at much higher values. A new aircraft can cost up to $80m. . .. .The cut will be the largest cull of the world’s commercial fleet. Usually, about 250 aircraft are scrapped each year. . .. .Randy Baseler, Boeing’s vice-president of marketing, said the scrapping would far exceed the mass retirement that followed the Gulf war. . .. .Large American firms have used the downturn to bring forward the retirement of swathes of their fleet. American Airlines, for example, has decided to rationalise its fleet from 11 plane types to six. . .. .Baseler said: “After the Gulf war the aircraft parked were basically younger — they had useful life in them. That’s not the case this time round.” . .. .The early retirements could cause problems for the banks that finance aircraft purchases. The value of used planes has plunged as the market has been flooded. BA recently sold five Boeing 747s for just $5m. . .. .Aircraft storage yards in American desert states have rapidly filled since September. US domestic traffic — which accounts for half of the world’s commercial flying — fell by 30% after the attacks.

[akerosid]

Another misleading media article: "forced to scrap"? It's the airlines' choice. AA, as they have mentioned, is scrapping certain types - the 727s will obviously be put out to grass*, as will those of other carriers, which are accelerating withdrawals. However, 717s will certainly be found new homes (probably at a considerable loss to Boeing or lessors?). It's really very much a non-article. . .. .(*Just as a matter of interest, AA's last 727 flight, due to take place very shortly, will actually be the last AA flight with a flight engineer - DC10s have gone, as have SPs, so this is the only one left. AA's acft have had F/Es since the first DC4/6s back in the '40s).

[lost soul]

having driven around Melbourne airport (Aus) and also Bournemouth (UK) recently there is certainly ample evidence of a lot of rather sad "dead" jet aircraft!

[donpizmeov]

Very unfair lost soul. Qantas are now starting to buy some new aircraft, so those old ones they fly now (and I take it you saw at Mel) will be gone in good time.

[Dutchie]

Big deal.... .. .Have I missed the article National Express is scrapping busses lately.. . .. .It is al part of the industry. I think jurno's don't appreciate that an old 747 is not a new 747... . .. .I think that the beauty of it is that we meet all the environmental deadlines on time for a change!!

[newswatcher]

Accepting the fact that we might not like the way that the media exaggerate for effect, it does appear that this statement was made by Boeing's vice-president of marketing - Randy Baseler(does one trust someone called Randy?). .. .Unfortunately statement not yet appearing on Boeing site, so was it reported accurately?. .. .Article said that the number of parked planes was a record and almost twice the number that were parked in the desert in the early Nineties after the Gulf War - partly because more jumbos, TriStars, DC-10s and 737s have been retired after flying for more than 30 years. . .. .However Boeing were wrong with their European air traffic predictions, which have recovered to pre-September levels, six months earlier than Boeing predicted. Transatlantic traffic is still 10 per cent down. . .. .Picture of Evergreen Air Centre, Arizona in Mail on Sunday seemed entirely made up of 737 jets, mostly from Metrojet. Unfortunately not able to post this.

[Stratocaster]

A website well worth a click: <a href="http://www.cactuswings.com/stored.htm" target="_blank">Cactus Wings</a> . .. .They list all the aircraft stored in AZ (plus some in CA). I don't know who these guys are, but they must have the patience of a monk !. . <img border="0" title="" alt="[Smile]" src="smile.gif" />. . . . <small>[ 25 March 2002, 12:52: Message edited by: Stratocaster ]</small>

[Dutchie]

Dear News watcher as you might know the title VP is given to anybody within Boeing that is part of the sales team. Within Airbus you will find a lot of Directors (of sales...) It looks good to the customer that is for sure. That said I have no idea who dear Randy is.. .. .Regarding the fact that it seems to be alot of aircraft, there was a problem already before 11/9 with al those 737-200 and 727's that do not meet noise criteria. DC10's have been phoenixes before they too are about to be worthless when the new European noise limits get into action. DC9's are also worldwide replaced by newer equipment I think only NW is trying to keep them on board.. .. .Add to that the airframe manufacturers are selling new aircraft for the price of the most expensive secoind hands to keep their production going (i.e. orders like the one of Ryanair who got a better deal for new than second hand aircraft) and one has a nice desert full of aircraft.. .. .A better comparison would be to take the delta of what was already in the desert added to the aircraft aimed for retirement minus what is in the dessert now. That is the only added outfall and that is not so bad i feel.

[tinyrice]

Dutchie is right, I think the delta on what arrived post 9/11 may provide a better idea. I was at Marana this summer and back again in November, and it seemed that the widebody count hadn't gone up much, but the narrowbody and DC8 freighter count had gone up a bunch. The Citybird 737's were pristine examples of that demographic. Some of the DC8's were temporarily resurrected to accomodate Afghanistan/Middle East support but I was assured that was short term only. UAL parked about 5 of their 747-400's at Victorville, pulled the motors and said they'd never fly for UAL again. They were focusing on the Trip7's going forward, but never say never in this business.