Delta Air Lines Orders Up to 70 Bombardier CRJ900 NextGen Jetliners

[mtsupilot376]

Delta Air Lines Orders Up to 70 Bombardier CRJ900 NextGen Jetliners


- Order includes 40 firm CRJ900 NextGen aircraft and options for 30 more for operation by Delta Connection carriers

- Transaction has potential value of $3.29 Billion US


TORONTO, ONTARIO--(Marketwire - Dec. 6, 2012) - Bombardier Aerospace announced today that Delta Air Lines, Inc. of Atlanta, Georgia has placed a firm order for 40 CRJ900 NextGen regional jets and has taken options on an additional 30 CRJ900 NextGen aircraft.
Based on the list price of the CRJ900 NextGen aircraft, the firm order is valued at approximately $1.85 billion US, and could reach approximately $3.29 billion US if the 30 options are converted to firm orders.
The new CRJ900 NextGen regional jets will be configured with 76 seats in a two-class cabin and will be operated by Delta Connection carriers to be determined by Delta Air Lines.
"We selected Bombardier's CRJ900 NextGen aircraft specifically because it is proven to be the most cost-efficient jet aircraft in its class for our operations and this regional jet satisfies perfectly the agreement that we have made with our pilots to add 70 more 76-seat jetliners to our fleet," said Ed Bastian, President, Delta Air Lines. "We have selected the CRJ aircraft for our restructuring plan based on the strength and reliability of their performance with our Delta Connection carriers over the years."
Delta Connection carriers currently fly 466 CRJ Series aircraft − 286 CRJ200, 79 CRJ700 and 101 CRJ900 jetliners − making it the world's largest CRJ aircraft fleet. The CRJ900 airliners in the Delta Connection fleet include 57 flown by Pinnacle Airlines, 16 by ExpressJet Airlines and 28 by SkyWest Airlines.
"Building on a relationship that is 20 years strong, we are delighted that Delta - one of the world's largest, most prestigious global airlines - continues to select Bombardier CRJ regional jets to replenish its fleet," said Mike Arcamone, President, Bombardier Commercial Aircraft. "CRJ aircraft have been in service with Delta Connection carriers since 1993 when Comair became the first North American airline to operate the CRJ100 regional jet. Since then, Delta has been a steady Bombardier CRJ customer and has been a major contributor to the worldwide success of the CRJ aircraft program. We look forward to a continuing strong relationship with Delta and we have every confidence in our ability to provide innovative solutions to meet the airline's business requirements."
Including the order from Delta Air Lines announced today, Bombardier has recorded firm orders for 1,775 CRJ Series aircraft, including 314 CRJ900 and CRJ900 NextGen aircraft. Worldwide, CRJ Series aircraft are in service with more than 60 airlines and more than 30 customers operate corporate variants of the aircraft. The aircraft are operating in over 50 countries on six continents, and on average, a CRJ aircraft takes off every ten seconds somewhere in the world. CRJ Series aircraft have transported more than 1.2 billion passengers and have logged more than 34 million flight hours and over 28 million takeoffs and landings.

link: http://www.marketwire.com/press-rel...rj900-nextgen-jetliners-tsx-bbd.a-1734469.htm

 

[General Lee]

Very true, all expected. This was a part of the new contract. Delta mainline gets 88 717s from AT/SW, and DCI gets up to 70 new 76 seaters. If the 717s don't show up, then the 76 seaters can't show up either. Overall, more than 200 50 seaters will be parked, and originally over 300 had leases that extended into 2015. Now, there will be a total of 125 50 seaters. The outgoing 50 seaters will be replaced on their routes by 70 and 76 seaters to try to produce more revenue and help pay for the higher gas prices. The 717s will replace 76 seaters on some of their routes. Mainline will recapture a lot of DCI flying with those 717s, at good pay rates, and a ratio has also been established to increase mainline flying overall domestically. UAL's new TA has a ratio, but no plan to swap out 50 seaters. They want new 76 seaters, but again doesn't have an order for a "100 seater." They do have new pay rates for E190s, but they are very low.

Also, DL will be getting these CR9s, but they have not decided who will fly them all. That will be interesting to watch. Hopefully the incoming 717s will allow hiring for Regional pilots in the next couple years. 14 MD90s will also be coming next year, but they will replace some of the DC9s leaving the fleet by 2014.



Bye Bye---General Lee

 

[Ops check good]

How much Kool-aid can one guzzle

 

[mtsupilot376]

Thanks for the update General Lee.

 

[General Lee]

How much Kool-aid can one guzzle

Read the facts. Tell me where it is bad? You must be disgruntled UAL or CAL. It took away RJs overall, added more mainline by far and will take back domestic routes, and that hopefully will lead to mainline hiring eventually.


Bye Bye---General Lee

 

[Flyer1015]

Thread should be titled, "Delta buys 40 carrots to dangle."


Yes, not surprising news because it's already known that lots of -200s will be parked, but someone has to operate these 40 planes. Guess where they will go? These 40 are carrots dangling.

 

[Clutch]

Thread should be titled, "Delta buys 40 carrots to dangle."


Yes, not surprising news because it's already known that lots of -200s will be parked, but someone has to operate these 40 planes. Guess where they will go? These 40 are carrots dangling.

Pinnacle does it cheaper and below cost!

 

[Explosive]

Read the facts. Tell me where it is bad? You must be disgruntled UAL or CAL. It took away RJs overall, added more mainline by far and will take back domestic routes, and that hopefully will lead to mainline hiring eventually.


Bye Bye---General Lee

Economics are taking away the 50 seaters. Our PWA only slightly sped up the process. It would have only taken a couple more years to reach similar 50 seater levels at Delta without C2012. They got rid of the first 80 50 seaters without ordering a single additional large RJ.

 

[goahead]

It's not about who flies them cheaper its gonna be about who will give up more 50 seaters for them.

 

[enuffalready]

Skywest inc/Xjt doesn't need help financing the aircraft. Delta is buying these so they can give them to someone else who can't get that financing.....Otherwise no reason to carry that debt on their books

 

[Jon Rivoli]

Skywest inc/Xjt doesn't need help financing the aircraft. Delta is buying these so they can give them to someone else who can't get that financing.....Otherwise no reason to carry that debt on their books

Mesa?:laugh:

 

[General Lee]

Economics are taking away the 50 seaters. Our PWA only slightly sped up the process. It would have only taken a couple more years to reach similar 50 seater levels at Delta without C2012. They got rid of the first 80 50 seaters without ordering a single additional large RJ.

I saw that 315 50 seaters had leases through 2015 and beyond. The leases kept them around despite the high oil costs. This expedites getting rid of them (Bombardier will take 60 in this deal). Had they stayed through 2015 due to the leases, there could have been circumstances that may have given management pause, to maybe do the mx checks and keep more of them. Instead, the number will decrease in number to 125. Get rid of 230 or so 50 seaters, add 70 76 seaters, then add 88 717s to fly current 76 seat routes. That is called a good deal.



Bye Bye---General Lee

 

[General Lee]

Mesa?:laugh:

Maybe Gojets or PNCL? Whoever plays ball it looks like...


Bye Bye---General Lee

 

[Ops check good]

Read the facts. Tell me where it is bad? You must be disgruntled UAL or CAL. It took away RJs overall, added more mainline by far and will take back domestic routes, and that hopefully will lead to mainline hiring eventually.


Bye Bye---General Lee

Wrong.

 

[jonjuan]

How much Kool-aid can one guzzle

Not kool-aid he's guzzling, but rather yogurt flavored man juice.

 

[E120ASA]

Wrong.

Delta wants out of go-jets really bad. Sky west is waiting for the Cs/e190 or larger aircraft to use its capital on...... p-nickle reorganizing plan is with 50 seater's they do not even want to pay to put the xj 900,s on their certificate and this is pissing off the FAA, you go figure out what will happen....

 

[Explosive]

I saw that 315 50 seaters had leases through 2015 and beyond. The leases kept them around despite the high oil costs. This expedites getting rid of them (Bombardier will take 60 in this deal). Had they stayed through 2015 due to the leases, there could have been circumstances that may have given management pause, to maybe do the mx checks and keep more of them. Instead, the number will decrease in number to 125. Get rid of 230 or so 50 seaters, add 70 76 seaters, then add 88 717s to fly current 76 seat routes. That is called a good deal.



Bye Bye---General Lee

But you can't credit all of those RJ reductions to our contract 2012. ALPA was telling everyone that we were on the hook for more than 300 50 seaters through 2015 before the TA passed.

After it was ratified, Delta figured out a way to get down to 250ish 50 seaters without any help from our PWA. C2012 did not get rid of 230 50 seaters, it only got rid of 125 or so (60 from this deal). Adding 70 RJs back means a net reduction of only 55 or so that can be credited to this contract. Considering that the replacement RJs are dual-class on top of the industry leading 255 we already have, I don't agree that it was a good deal, as it relates to RJs.

 

[xjhawk]

Delta wants out of go-jets really bad. Sky west is waiting for the Cs/e190 or larger aircraft to use its capital on...... p-nickle reorganizing plan is with 50 seater's they do not even want to pay to put the xj 900,s on their certificate and this is pissing off the FAA, you go figure out what will happen....

You should obviously not post if you have no clue on what you are talking about. The XJ 900's operating manner/manual will be the base of all operations going forward-that being said they will take the good things of both airlines but will see most of the 900 POM FOM (the old 200 POM FOM) put into the old 9E crj 200 program. That being said, I am sure management has known that Delta's plan was to reduce the size of the 200 fleet-therefore why change the XJ 900 operation which is pretty rock solid when it comes to POM/FOM policies and procedures? Right from the CRJ fleet managers mouth came the phrase "they will be trying to mirror the 9E 200 program to match the XJ 900 so its a seamless transition."

 

[General Lee]

But you can't credit all of those RJ reductions to our contract 2012. ALPA was telling everyone that we were on the hook for more than 300 50 seaters through 2015 before the TA passed.

After it was ratified, Delta figured out a way to get down to 250ish 50 seaters without any help from our PWA. C2012 did not get rid of 230 50 seaters, it only got rid of 125 or so (60 from this deal). Adding 70 RJs back means a net reduction of only 55 or so that can be credited to this contract. Considering that the replacement RJs are dual-class on top of the industry leading 255 we already have, I don't agree that it was a good deal, as it relates to RJs.

Wait, without the deal, they couldn't get a NEW deal with Bombardier to take back 60 RJs early and replace them with 70 new CR9s. (the other 170 50 seaters will go away by parking or go to other airlines like ASA flying for UAL) A lot of things had to go right for this deal to look good, and that means dumping lots of RJs (over 200), adding 88 717s, better pay rates, and short contract duration. As far as dual class RJs go, if an RJ has to be on a route, a route that cannot be flown by a 717 because it is too small, I would want a two class RJ on there to get as much revenue as possible. The more revenue possible (a few first class tickets sold maybe), the better chance that RJ can pay for the gas on the leg, and maybe make profits for Mother Delta, giving us a shot at profit sharing. That is the end game here, making profits so the next contract adds more to the hourly pay.



Bye Bye---General Lee

 

[jetstream]

XJ is hiring 'em and training 'em as fast as we can and more than we need for the 12 900's we are getting now. What could that mean?

 

[Clutch]

XJ is hiring 'em and training 'em as fast as we can and more than we need for the 12 900's we are getting now. What could that mean?

Concessions.....???

 

[Oakum_Boy]

These will be shuffled around DCI every three-five years. Even if SKyW/XJT gets a few they'll be moved to GoJet or some other dirtbag outfit asap. SkyWest would be smart to avoid these musical airplanes and let their -200 leases expire as their time comes.

 

[SLUF4]

Very true, all expected. This was a part of the new contract. Delta mainline gets 88 717s from AT/SW, and DCI gets up to 70 new 76 seaters. If the 717s don't show up, then the 76 seaters can't show up either. Overall, more than 200 50 seaters will be parked, and originally over 300 had leases that extended into 2015. Now, there will be a total of 125 50 seaters. The outgoing 50 seaters will be replaced on their routes by 70 and 76 seaters to try to produce more revenue and help pay for the higher gas prices. The 717s will replace 76 seaters on some of their routes. Mainline will recapture a lot of DCI flying with those 717s, at good pay rates, and a ratio has also been established to increase mainline flying overall domestically. UAL's new TA has a ratio, but no plan to swap out 50 seaters. They want new 76 seaters, but again doesn't have an order for a "100 seater." They do have new pay rates for E190s, but they are very low.

Also, DL will be getting these CR9s, but they have not decided who will fly them all. That will be interesting to watch. Hopefully the incoming 717s will allow hiring for Regional pilots in the next couple years. 14 MD90s will also be coming next year, but they will replace some of the DC9s leaving the fleet by 2014.



Bye Bye---General Lee

Can you explain why in April 2012 Delta did this: "Delta has agreed to extend Pinnacle’s CRJ200 contract by four and a half years, which means it will be saddled with 145 50-seaters that it takes great pains to declare are uneconomical until 2022. " (copied this from an article) This was before our TA. Why would they suddenly decide to extend these contracts if they wanted to get rid of them? This was all in the master plan to extend these out so they could leverage them against us at mainline and pinnacle.

 

[HA25]

http://www.audriesaircraftanalysis.com/2012/12/01/delta-airlines-pilot-scope/

 

[JumpersAway]

There were three PCL CRJ 900's at A-Tech a couple of days ago- saw them there plain as day. I don't think they were there for storage either.

The training department is kicking into high gear, and apparently, quite a bit of training is expected in 2013. Flight attendant hiring at ExpressJet has also spooled up to a pretty agressive pace. Something that is being kicked around the GO, is dropping first year probationary pay. Apparently, this is an effort to recruit and retain pilots from PCL, should they liquidate. ExpressJet is looking to hire as many previously qualified CRJ pilots as possible.

Delta was rather displeased with our 200's going to American. Apparently, DAL tried to renegotiate the CRJ200 for CRJ700/900 swap, in order to keep the 200's in the DCI system in an effort to keep them away from American. However, SkyWest declined as the aircraft had already been commited to Dallas and American, contractually.

Apparently, MIA as an ExpressJet base was being looked at hard. However, a pretty good source has stated that there will be no MIA base for us. We will do an extensive amount of flying out of MIA, however. Another base is looming on the horizon for us though, with no location hinted at, other than that it will likely go VERY senior. I'm thinking this will have a lot to do with a perspective AA/USAirways merger.

Also, the questionaire that we completed is a guage of employee groups, to see whom is compatible with whom. There is some serious thought, by Inc. , of combining the LASA and SkyWest portions, and leaving legacy ExpressJet as a stand alone entity.

There is quite a bit of interesting happenings at SkyWest Inc., and I'd suspect this announcement has a lot to do with it. Time will tell............

 

[Monster Buck]

Delta wants out of go-jets really bad. Sky west is waiting for the Cs/e190 or larger aircraft to use its capital on...... p-nickle reorganizing plan is with 50 seater's they do not even want to pay to put the xj 900,s on their certificate and this is pissing off the FAA, you go figure out what will happen....

really......curious.....E190's huh..... how will that work as a DCI carrier?

 

[wms]

Delta wants out of go-jets really bad. Sky west is waiting for the Cs/e190 or larger aircraft to use its capital on...... p-nickle reorganizing plan is with 50 seater's they do not even want to pay to put the xj 900,s on their certificate and this is pissing off the FAA, you go figure out what will happen....

Actually the 100 mrj's agreed to with Mitsubishi. Planning meetings have already begun in sju.

 

[redflyer65]

Wait, without the deal, they couldn't get a NEW deal with Bombardier to take back 60 RJs early and replace them with 70 new CR9s. (the other 170 50 seaters will go away by parking or go to other airlines like ASA flying for UAL) A lot of things had to go right for this deal to look good, and that means dumping lots of RJs (over 200), adding 88 717s, better pay rates, and short contract duration. As far as dual class RJs go, if an RJ has to be on a route, a route that cannot be flown by a 717 because it is too small, I would want a two class RJ on there to get as much revenue as possible. The more revenue possible (a few first class tickets sold maybe), the better chance that RJ can pay for the gas on the leg, and maybe make profits for Mother Delta, giving us a shot at profit sharing. That is the end game here, making profits so the next contract adds more to the hourly pay.



Bye Bye---General Lee

Everyone needs to re-read this post. Delta told DALPA that this was a great deal to help get rid of CRJ200s. Paints the whole arguement as DALPA helping out with moving things forward.

The actual truth was Delta was looking at hundreds of millions of dollars to re-engine plenty of CRJ200s. DALPA bit on the payrate increases and the guise of 'helping out'.

DALPA had them over the barrel, and gave them a pass for more money. Same ole, same ole.

Now, planes that used to be flown by mainline (DC9-10), will now be flown by DCI for probably LESS than half of what mainline was getting. Very sad for the industry.

 

[joe_pilot]

Actually the 100 mrj's agreed to with Mitsubishi. Planning meetings have already begun in sju.

Whoa!! We're opening a San Juan Base for AA??

 

[wms]

Whoa!! We're opening a San Juan Base for AA??

Sorry, sgu.