=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/09/29/f= inancial0358EDT0440.DTL --------------------------------------------------------------------- Wednesday, September 29, 2004 (AP) American Airlines to adjust and repair planes in effort to save millions on= fuel DAVID KOENIG, AP Business Writer (09-29) 00:58 PDT FORT WORTH, Texas (AP) -- Working the midnight shift late last year, American Airlines dispatcher Joe Arena monitored planes flying from Dallas to Peru, and noticed that some burned far more fuel than others. "The weather patterns are usually the same, so I knew it couldn't be that," Arena said, adding that it didn't matter which captain was flying the plane. "I kept asking myself, `Why is it doing this?"' Arena, whose mania about engine performance may owe to his hobby followi= ng top-fuel drag racers, compiled a list of gas-guzzling jets and gave it to superiors. American Airlines, the largest U.S. carrier, wants to save more than $11 million a year by fixing the biggest fuel guzzlers in its 726-plane fleet as part of a larger plan to save $118 million on fuel each year. The $11.2 million company officials hope to save with mechanical adjustments or by smoothing out small dings that affect a plane's aerodynamics might seem a pittance to an airline that has lost more than $6.7 billion since 2001, but they say they must start somewhere. Jet fuel accounts for nearly 20 percent of American's costs, its second-largest expense behind labor. American spent $2.8 billion on fuel last year, and with stubbornly high oil prices, it estimates the 2004 cost will be $3.4 billion. The increased cost of fuel turned what could have been parent AMR Corp.'s first profitable year since 2000 into another money-loser. It's the same story at many other carriers. A trade group, the Air Transport Association, estimates that U.S. carriers will pay $6 billion more for fuel this year because of higher prices. Eighteen executives, including the CEO of American, asked Congress last month for relief from fuel costs. But Congress -- which approved $5 billion in grants for the industry after the Sept. 11, 2001, terror attacks -- hasn't responded this time. The average price of a gallon of jet fuel on spot markets along the Gulf Coast is $1.39, nearly twice the price of a year ago. American cited fuel when it tried to raise fares last week, but the move stalled when some rivals declined to boost prices. Among the fuel-saving steps American has taken: taxiing on one engine instead of two, and shutting down auxiliary gas-powered engines while planes are parked at the terminal. To reduce weight and improve mileage, American jets have been carrying half as much reserve fuel on international routes since May after the Federal Aviation Administration approved. American also uses its planes as tankers, ferrying fuel from places where it is cheap. This summer, when jet fuel cost $1.58 a gallon in California but $1.16 in Dallas, American saved $400 a flight by filling up in Texas. Steve Chealander, a pilot picked to lead American's fuel program, said ferrying will save $15 million this year. Computers are used to calculate how to spread the weight of passengers when flights aren't full -- an uneven load could cause the nose to rise, increasing drag and reducing mileage. Changing the center of gravity on each MD80 and Boeing 757 by just 11 inches will save $5 million a year, Chealander said. "You're not going to find a $100 million saver, but you can find lots of smaller ones that add up," Arena said. ---------------------------------------------------------------------- Copyright 2004 AP