ST. LOUIS -- TWA ordered 125 new Boeing and Airbus aircraft, with
options for 125 more, with an eye toward creating one of the
industry's youngest fleets.
The firm orders are for 50 717 aircraft, originally designated
the MD-95; 50 A318s, for which TWA will be the "launch customer",
and 25 aircraft in the A320 "family," which includes the A318, 319,
320 and 321 models. The options are for 50 717s and 75 A320 family
aircraft.
The new planes will convert one of the oldest fleets in the
industry to one of the youngest. In 1996, its average aircraft age
was 19 years. Previous orders will bring the average down to 11.3
years in 2000, and the new orders will reduce it further to 7.3
years by 2007.
The 717s, configured for 111 seats, will replace the DC-9, of
which TWA is one of the largest operators. The phaseout of DC-9s
will be completed by 2005.
The 717, a "high-frequency" aircraft, will fly from St. Louis to
destinations as far west as Denver and from New York to points in
the eastern half of North America.
The A318 is a 110-seat medium-range aircraft that can fly from
the carrier's hub here to any point in the contiguous 48 states,
Canada or Mexico. It is likely to be deployed on long routes for
which TWA's MD-83s are too large to offer the frequencies demanded
by business travelers.
The carrier already has retired its 747s and L-1011s and will
probably complete the retirement of its 727s by the end of next
year.
TWA chairman Gerald Gitner said the new orders and options will
offer enough flexibility so that, depending on the state of the
economy and on the competitive situation, the carrier could switch
from a replacement mode into a growth mode in 2001. Gitner said the
new aircraft will provide "operating economics superior to what we
have today."
But beyond that, he said, they will contribute to the ongoing
process of burnishing TWA's public image. "We have made tremendous
progress," he said, noting that the carrier won this year's J.D.
Power award for domestic flights of 500 miles or more and has made
huge strides in improving its on-time performance. We will get
there," Gitner said.
It is likely that TWA got a good price for the new aircraft.
Launch customers for new aircraft generally get a good deal, and
chief financial officer Mike Palumbo said "launch economics"
applied to both orders.