Ottopilot

Delta Appears To Walk Away From Initial 787s

Mar 3, 2009
Darren Shannon [email protected]


Delta Air Lines appears to have renounced its position as the North American launch customer for Boeing's 787-8 widebody, according to the carrier's latest regulatory filing with the U.S. Securities and Exchange Commission.

The Atlanta-based carrier, which inherited a firm order for 18 787-8s when it acquired Northwest Airlines in 2008, has dropped the firm orders from its latest annual report, which was filed late March 2.

Instead, the airline in a footnote noted the 18 aircraft have been excluded from its firm order obligations because "[t]he Boeing Company has informed us that Boeing will be unable to meet the contractual delivery schedule for these aircraft."

Delta, by nature of the Northwest order, was scheduled to take delivery of at least one of the first batch of 787s currently under construction at Boeing's Everett, Wash., facility.

That airframe originally was scheduled to enter service with Northwest at the end of 2008, but continued delays to Boeing's 787 manufacturing process have now pushed first flight for the -8 launch derivative to sometime before this year's Paris Air Show, which occurs mid-June.

Entry into service is now not expected until the first quarter of 2010 at the earliest.

Delta has been expected to revise, if not cancel, its 787 order since AviationWeek's Aviation Daily exclusively reported the carrier was favoring Boeing's 777 over the all-new widebody.

This expectation was heightened in December when the airline's Executive VP for Revenue Planning and Network Management during Delta's investor day conference said the airline's 777s could be the 747-400 replacement Northwest had intended when the Eagan, Minnesota-based carrier first ordered the 787s.

The first batch of 787-8s has also been troubled with weight issues that could limit deployment on the ultra-long-haul routes first intended by Northwest.

Delta, however, is adamant the decision to drop the 787 from its firm order plans is not a cancellation. "We have not cancelled our firm order of 18 787 aircraft," said a spokesman.

Both Delta and Boeing also noted they continue to "discuss the situation."

Delta has retained 18 787-8 option positions that were negotiated under Northwest's initial purchase. These start with six options in 2013, with the remaining 12 assigned to unspecified dates thereafter.

It is unclear what will happen to the first aircraft intended for Delta, although several sources indicated 787-8 launch customer All Nippon Airways is prepared to take the airframes as the Japanese carrier both requires the capacity and would be less restricted by weight issues as it intends to initially deploy the aircraft on domestic routes.

ANA was not available for comment.

Should Delta renounce the first batch of 787s this could make Continental Airlines the first North American operator of the composite aircraft.

777 photo credit: Delta Air Lines

maddogmax

If this is the case, then it would seem logical that the protected 787 positions awarded to the former NWA pilots under the SLI arbitration would transfer to any additional 777 orders. Let the discussion begin.

shiznit

That is actually a good thing as it will help integrate the super-senior guys/gals and reduce the effect of the "fence" for the 777 fleet, helping us move forward instead of keeping looking at the past.

Why should the actual replacement (77-300ER???) airframe NOT be offered to FNW pilots first?

I would be ****ed if they didn't offer the seats to FNW first and I'm FDL!

PilotFrog

That is debateable because the protection was only 5 years. Aquiring them in 2013-2015 only the 2013 would be protected, not the ones after that date as the fence will have expired.

johnso29

I would think the 777s could come earlier.

Dash8widget

This could get very complicated. Lets say that the new 777's are considered replacements for the 787's so that the FNW pilots get to fly them as a fenced off position. And lets say that the company needs all of the new 777's to go to ATL. Do we then have two ATL 777 categories; FNW and FDL? Lets say that a FDL 777 pilots calls in sick, but there are no FDL pilots available to cover the rotation. Can they use a FNW pilot? My head hurts.

sailingfun

If the aircraft are placed in Atlanta its not likely they would be replacement aircraft for NW so it would all be one category. The issue will most certainly end up in arbitration. If they park the 747's and don't take the 787 former NWA pilots should get the 777 replacement aircraft that pick up those routes such as the all the DET/SEA/MSP flying to the Orient. Its fenced and belongs to NWA regardless of what aircraft flies it. Yes it will be a pain for the company but they agreed to the SLI and have to live by it.

Fly4hire

It's not that hard - they simply come with a ratio of awards within the combined category that applies both up and down. Award/displace by ratio/seniority and it's all flown as one category.

capncrunch

I don't see where management decides to have the aircraft spend the night is of any consequence. A replacement is a replacement.

Dash8widget

The SLI fences are all about aircraft types - NOT routes. Most of the "Orient" flying from the west coast will soon be ER's, the 744's will soon be flying out of ATL, etc. The 744 will probably still be here when the fences expire, so the only real question is what defines a 787 replacement? I think that DL still has 777 options that have not be excerised. If the 787 is just defered and not cancelled and the 777 options are excerised - is the 777 a replacement? This is a big problem with the SLI; putting fences around an airplane that hasent even flown yet. The 777 is bigger and is not a substitute for the 787, the 787 was designed to be a 767 replacement.