MD-80 vs A-320
 

Hi guys,
Do you think that it makes sense tu sell an MD-80 for less than $5 millions that is paid for and buy a brand new A-320 that costs more than $50 millions to
save around 30% on fuel costs? I don't think so. I never understood it.
Well, that's just my opinion.
And we could say the same about a B-737-300 and an A-320.

After labor at number one, fuel is the second largest expense for an airline.

Other economic reasons for trading up: The cycle count on the MD80 frame, what point in the maintenance schedule it is (possibly nearing a D check) and where the operators books are on the aircraft's depreciation. Minor consideration - the old gal may also be assessed higher landing fees due to her noisy JT8D's and limited to slots during the day where noise restrictions are tight.

edit: of course $50 million bucks American can buy a considerable amount of kerosene.

And many if not most do not buy a new airframe, they use quite a few financial products to keep the upfront cost low. Usually required is between 10 and 20% upfront cost, the rest over the time of the projected lifetime within the company.