American Airlines sets end date for A321, 737 'Project Oasis' updates
American Airlines has an end date for when it should be done reconfiguring the cabins on its Airbus A321 and Boeing 737-800 jets.
The Fort Worth, Texas-based carrier plans to wrap up the "Project Oasis" updates to its 304 737-800s by April 2021, and to its 202 former US Airways A321s a year later in April 2022, said American senior vice-president of revenue Don Casey during a quarterly earnings call on Thursday. This is about a year behind the original schedule it laid out in 2017.
The work harmonizes the cabin configurations across American's A321 and 737 fleets. The A321s go to 190 seats from as few as 181 seats, and the 737-800s to 172 seats -- the same as on the 737 MAX 8 -- from 160 seats. The changes will both reduce operational complexity and allow the airline to grow capacity without adding aircraft, according to executives.
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The new completion timelines come after American temporarily paused work on the 737s, and delayed beginning work on the A321s, in the months following the MAX grounding last March.
Reconfiguration work has resumed, even though the MAX grounding continues to drag on. At the beginning of 2019, the airline had planned to be flying 40 MAX 8s by year-end -- none of which are in the air, with Boeing saying a return-to-service by mid-2020 is likely.
American CEO Doug Parker suggested Thursday that a return to the skies is not likely until “late summer or early fall" at the soonest.
“We’re not going to delay the line due to the MAX, we’re going to keep them going," said Robert Isom, president of American, when asked whether the Oasis timeline could be delayed further if the MAX remains grounded.
Related: American and Delta were the world’s largest airlines in 2019
American is making other adjustments to make up for the lack of the MAX. Flights on the grounded jet are being removed from schedules further out, allowing the carrier to "revenue manage the airline to a more predictable capacity base," said network guru Vasu Raja on Thursday.
At the same time, the airline willingly admits that its plans to grow capacity by 4-5% year-over-year in 2020 will change depending on when the MAX returns to service. American continues to focus on growing its Charlotte (CLT) hub this year, the mid-innings of a three-year growth plan at its most profitable hubs, which also include Dallas/Fort Worth (DFW) and Washington Reagan National (DCA).
"American's execution throughout 2020 will be key with no room for excuses... in order to shift the narrative from operational struggles and ceding share to the positive [story]," wrote Raymond James analyst Savanthi Syth in a report Thursday.
What American is not changing -- and may not need to with other improvements -- is its non-MAX fleet plans. The airline will retire its fleet of 20 Embraer E190s by the end of summer, and remove 11 Boeing 767-300ERs by year-end. Both changes were in the works well before the MAX grounding, and continue to move forward in spite of it.
"We will make adjustments based on what we hear from Boeing," said Isom when asked if the fleet plans could be modified.
Not including the MAX, American plans to take delivery of one used Airbus A319, 18 Airbus A321neos -- including five deliveries that were delayed last year -- and 12 Boeing 787-8s to replace the 767s.
Related: How American will grow its Charlotte hub to more than 700 flights
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- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.