American Airlines has ordered a 6th 777-300ER now and indicates more may be on the horizon.  One does have to wonder about the piecemeal orders they’ve made so far.  Why not order in blocks rather than an aircraft every few months?

Analysts aren’t so high on these purchases believing that it raises AA’s cash burn.  AA counters that the economics are excellent and will allow American to earn more and that’s probably true.

It’s a good aircraft and most airlines are migrating from -200s to -300s because if you can fill the aircraft, you do make more profit.  American has a number of routes that could benefit both across the Pacific and Atlantic oceans as well as potentially to South America.  It may well be a better way to grow capacity as well.

But I think analysts (and me as well) are wondering just when American is going to address other problems that are causing high cash burns.  That would be the failure to come to an agreement on new labor contracts with their staff that would permit the airline to get on with focusing on profitable operation of the airline.

Filed under: Airline Fleets, Airline News by ajax