rotornut
13th Feb 2004, 18:15
Delta to Trim Boeing 777 Jet Deliveries
Tue Feb 10, 6:41 PM ET
SEATTLE (Reuters) - Delta Air Lines, the No. 3 U.S. airline, said on Tuesday that it would defer or sell up to five Boeing Co. 777-200 wide-body jets on order through 2006 in order to cut capital spending by about $300 million.
The Atlanta-based carrier said it plans to push back two 777s due in the first half of 2005 to the second half and then sell them. Another three 777s due in 2006 would either be sold or converted into orders for other Boeing jets, the airline said.
Delta said the deferral and sale of the 2005 aircraft, would save it about $300 million, noting that it hired an undisclosed entity to help it with the sale.
The airline said it was "pleased" with the performance of its current fleet of eight 777-200s, which can seat up to 400 passengers.
Delta ordered 13 777s in 1997 and 1998 but, like many airlines, it began parking aircraft and deferring new deliveries after the Sept. 11, 2001 U.S. hijack attacks slashed air travel demand.
Delta officials surprised some Wall Street analysts last month by announcing plans to increase fleet capacity by 8 to 10 percent this year. New Chief Executive Gerald Grinstein has vowed to cut costs wherever possible.
A Delta spokeswoman declined to elaborate further.
In late 2001 Boeing agreed to push back more than 500 jets on order, the equivalent of nearly two years of production at current reduced output rates.
Boeing spokesman Nicolaas Groeneveld-Meijer declined to comment on the likelihood of further order deferrals.
"Where possible, Boeing works with its customers for the benefit of the commercial aircraft industry," Groeneveld-Meijer said.
Tue Feb 10, 6:41 PM ET
SEATTLE (Reuters) - Delta Air Lines, the No. 3 U.S. airline, said on Tuesday that it would defer or sell up to five Boeing Co. 777-200 wide-body jets on order through 2006 in order to cut capital spending by about $300 million.
The Atlanta-based carrier said it plans to push back two 777s due in the first half of 2005 to the second half and then sell them. Another three 777s due in 2006 would either be sold or converted into orders for other Boeing jets, the airline said.
Delta said the deferral and sale of the 2005 aircraft, would save it about $300 million, noting that it hired an undisclosed entity to help it with the sale.
The airline said it was "pleased" with the performance of its current fleet of eight 777-200s, which can seat up to 400 passengers.
Delta ordered 13 777s in 1997 and 1998 but, like many airlines, it began parking aircraft and deferring new deliveries after the Sept. 11, 2001 U.S. hijack attacks slashed air travel demand.
Delta officials surprised some Wall Street analysts last month by announcing plans to increase fleet capacity by 8 to 10 percent this year. New Chief Executive Gerald Grinstein has vowed to cut costs wherever possible.
A Delta spokeswoman declined to elaborate further.
In late 2001 Boeing agreed to push back more than 500 jets on order, the equivalent of nearly two years of production at current reduced output rates.
Boeing spokesman Nicolaas Groeneveld-Meijer declined to comment on the likelihood of further order deferrals.
"Where possible, Boeing works with its customers for the benefit of the commercial aircraft industry," Groeneveld-Meijer said.