News has it that American Airlines Group Inc (NASDAQ:AAL) is planning on renovating its aircrafts. The company will be spending around $2 billion on the seating, power outlets and in-built entertainment mechanisms in its airplanes. The company has embarked upon this task in order to catch up with one of its biggest rivals, Delta Air Lines, for Delta Air Lines started improving the in-flight facilities first.
American Airlines Group Inc (NASDAQ:AAL) announced its plan on December 7, 2014. According to the rumors, the company will be focusing on the renovation of more noticeable items. American Airlines will also be collaborating with its US partner, US Airways. It is important to mention here that US Airways has been doing great since the partnership. There is a chance that the renovations in the aircrafts will improve the business of both the partner companies even further.
Since the sealing of merger deal, American Airlines Group Inc (NASDAQ:AAL) has been posting profits. The company even paid a dividend to its stockholders. It is worth mentioning here that it was the first time in 34 years that the company paid dividends to its stockholders. Moreover, the Airline also announced a share purchase plan whereby it will buy its shares back for a total of $1 billion.
Perhaps it is due to this improved condition of the company that it has planned on updating its aircrafts; the company can pay for the renovation, for its financial position has gone much stronger. The stocks of the company have seen an increase of around 100 percent during the past year.
Doug Parker, the CEO of American Airlines Group Inc (NASDAQ:AAL), during a recent press conference, said that the company has been doing well for quite a while now, and this is the reason why the management has a lot of confidence in the company. He further mentioned that the company plans to take the product to an even higher level, the level that has not been achieved by either of the partner companies before.
American Airlines Group Inc (NASDAQ:AAL) will have around 100 new airplanes by the end of the year 2014. The company plans on discarding the older planes. American Airline says that it will add around 112 and 84 new aircrafts in its ownership in the year 2015 and 2016 respectively. The company plans on adding a total of 300 airplanes by the end of the year 2022.
American Airlines Group Inc’s (NASDAQ:AAL) aircrafts will have back seat video screens. Moreover, almost all of the primary jet planes have Wi-Fi installed in them. The company is also planning on introducing Wi-Fi services in its regional airplanes.
According to the news, most of the changes are being made in the airplanes that have an international network. The company has started updating its Boeing 767-300s and 777-200s.
American Airlines Group Inc (NASDAQ:AAL) has a P/E (price to earnings) ratio of 8.70 with a beta of 2.13.