Originally Posted by
forgot to bid
Delta prepares for full narrowbody analysis in early 2011
By Lori Ranson
Delta Air Lines is preparing to start discussions early next year with manufacturers about replacing its aging narrowbodies.
Speaking during the carrier's annual investor day Delta president Ed Bastian said: "We clearly need to get the DC9s retired. We clearly need to start to build a replenishment strategy for our older MD88s and some of our Airbus narrowbodies as well as the [Boeing] 757s."
Flightglobal's ACAS database shows that Delta currently operates 40 DC9s, 117 MD88s, 179 757s and 126 Airbus A320 family aircraft.
"We'll have more data as we talk to the manufacturers," says Bastian. "We've not been in a position the last couple of years because when you put two airlines together you really pop out so much capacity that you want to make sure it is fully allocated and fully productive." Delta and Northwest merged in 2008, and attained a single operating certificate from the FAA in December 2009.
Bastain explains now Delta is "at the point of the cycle where we think we should have those conversations", with airframers.
Delta's president also states the carrier is "open to different economic financial models" in acquiring new aircraft, and would consider both direct ownership and leasing.
Remember where you heard it first. Using reasonably accurate estimates our MD88 and 757 fleets are nearing structural limits requiring their replacement. Figuring a 18 to 36 month lead time from orders to deliveries we are serious shoppers.
http://www.airlinepilotforums.com/ma...elta-5457.html
Stock usually jumps with talk of airplane orders. As a trade, buy DAL on the dips, plan for a sale around mid to late June. I can see a Delta representative at the Paris Air Show talking about how our orders integrate into the needs of our global partners, with the Air France rep standing in front of an A380 model. If so, good for us as we get a lot more staffing out of our split in the AF/SkyTeam allocation.
What is most interesting about this announcement is the signal it sends on potential merger partners. This tells me it is less likely (although still possible) we believe Alaska's fleet will be deployed as part of Delta.
I think paying for our own fleet replacement is something of a last resort for Delta management. Aside from the DC9, there are no efficiencies that will make the new jets "self financing." In fact, in the case of the 757, the replacement jet may not even be as efficient (refer to press on British Airways replacement of their aging 757's with A321's).