American Airlines Is Keeping Costs Down

Airlines Need New Planes, but the Supply Chain Has Other Ideas

For years, American Airlines has been on the cutting edge of technology, and that means the airline needs a fleet of high-tech aircraft. American Airlines pilots in the past used a variety of aircraft, including the Convair 580 and 727. Now, the airline is considering an entirely new airplane.

Airlines Need New Planes, but the Supply Chain Has Other Ideas

For years, American Airlines has been on the cutting edge of technology, and that means the airline needs a fleet of high-tech aircraft. The airline’s planes are used in a wide range of situations, from making long-distance flights to serving passengers on domestic flights.

One plane the company has considered for a while is the Boeing Co. 737, the same type of aircraft that has been in service since 1981. American Airlines has taken a couple of different approaches to getting the new plane off the ground. The first one was to purchase the aircraft entirely new. But that approach was not pursued because of high costs of manufacturing, labor and ongoing support.

American Airlines will instead purchase a current-generation 787 Dreamliner, which is currently in production. But the airline only has a pilot contract to fly the 787 Dreamliner on domestic flights. This means pilots flying in the 787 Dreamliner on domestic flights must have at least five years of experience with the type. To the airline’s credit, American Airlines is committed to keeping pilot training costs low.

American Airlines still has some work to do before it sees the new plane in the air, but there are ways the airline is keeping costs down. The airline is not spending a tremendous amount on fuel as it has in the past. The airline’s average fuel costs for the past 12 months were $8.44 a gallon, compared to $11.05 a gallon for American Airlines. American Airlines is also not using a lot of the fuel it is buying from the company. It is spending less on fuel than the company has purchased to date.

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