Page 68 - World Airnews Magazine April 2020 Edition

NEWS DIGITAL

AIRCRAFT RETIREMENTS

ACCELERATE

By Will Horton

Before 9/11, the number of stored air- million retrofit for 10 -200ERs used on
craft increased by 150 between 1998-2000. thinner long-haul markets, since replaced
The uncertainty of coronavirus and its That grew the share of parked aircraft from with Airbus A350s. The -200ERs serve
impact on aviation might appear worse as 5% to 7%. There were 800 aircraft stored regional destinations.
airlines quickly retire aircraft fleets. There at the end of 2000 but 1,500 at the end of American Airlines is accelerating
may be memories of the post 9/11 market 2001 (12% of the commercial fleet). The retirements slightly faster. It planned to
when airlines sent aircraft to the California post-9/11 environment coincided with retire 767s, which mostly fly to smaller
and Arizona deserts. changed consumer mindsets and volatile European markets, by the end of 2021,
Initial retirements are American Airlines’ oil. but they will be grounded in May 2020,
Boeing 757s and 767s, KLM’s Boeing Some aircraft retirements after 9/11 American says. The 757s will be retired no
747s, Virgin Atlantic’s Airbus A340-600s, were unplanned, with aircraft sent to the later than after the 2021 summer. American
and likely Singapore Airlines’ Boeing desert despite recently being repainted or originally intended to have 24 757s at the
777-200ERs. undergoing a heavy maintenance check, end of 2021.
These retirements – and any more to usually indicating they will remain in service Even though American planned to retire
come – are occurring after the aviation for at least the medium-term. the 767s by the end of 2021, in 2014 it
industry reached a 20-year low of aircraft Even with recent OEM manufacturing started installing new business seats as
in long-term storage (in terms of share of problems (737 MAX, A321neo, PW- part of fleet-wide improvements. The seats
total fleet). powered A321neos) and decreasing aircraft were lie-flat but did not have embedded
Over the last two decades, airlines production rates, more aircraft are being IFE. American later installed Panasonic
maximized growth and used older, cheaper built now than in 2001. And unlike the satellite connectivity on the 767s.
assets to fly marginal routes. Aircraft had en masse fleet retirements after 9/11, Virgin Atlantic’s last three A340-600s
never been busier even before the Boeing retirements in this downturn so far mostly were sent to storage in March. The aircraft
737 MAX grounding put pressure on the involve the few aircraft left of already were retained to cover for 787s grounded
spare fleet. dwindling fleets. An exception is American’s by Rolls-Royce Trent 1000 engines, whose
There were approximately 1,400 aircraft 757 and 767 fleet. repair time has been lengthened and
in long-term storage at the end of 2017, Retirements are now less of a fundamen- become unpredictable. Virgin’s schedules
according to the latest Airbus figures tal shift and more of an acceleration initially withdrew the A340 at end of last
available. That represented about 7% of KLM’s 747s could leave by the end of October, then December, and then early
total commercial aircraft. Boeing last year March 2020. This was previously pegged January.
said the share had come down even further for 2021 but was creeping forwards: last Delta earlier this month flagged it could
to a 20-year low. month at its annual results, Air France-KLM accelerate retirement of some older MD-
Unlike past crises, aviation entered the mentioned747 retirement as a 2020 88s, MD-90s, 757s and 767s, according to
coronavirus downturn with strength. priority. the Points Guy. Delta is sending widebody
Parked aircraft increased by about 100 in Similarly, Singapore Airlines planned to aircraft to the desert, but only for tempo-
2003 after SARS and the Iraq War, but came operate 777-200ER flights until May 2020, rary storage.
down in 2004. That is partially reflective of but its schedules show no -200ER flights Health outbreaks have not typically
parked aircraft being dismantled, but that is after April. SIA has not yet confirmed produced structural change. Coronavirus
also part of the industry’s lifecycle. retirement. SIA in 2012 planned a $78 may buck this trend. Time will tell. Q

World Airnews | April Extra 2020
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