jetflier
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Corp., plans to seek significant changes to aircraft orders that both carriers had placed individually with Boeing Co., according to people familiar with Delta's plans. View Full Image
Associated PressDelta has yet to ask Boeing officially to change its orders for new planes.
Most notably, the company is likely to scale back a Northwest order for Boeing's new, but delayed, 787 Dreamliner, and ask the manufacturer to expand a Delta order for the 777-200LR, a long-range aircraft that carries at least 50 more passengers and would better enable the combined carrier to continue pursuing Delta's strategy to shift a greater percentage of its flights to long overseas routes.
No final decisions have been made regarding new aircraft, the people said, and Delta has yet to officially ask Boeing to alter its order book.
For Boeing, a change in Delta orders is unlikely to disrupt its manufacturing schedule or hurt its bottom line because other customers are queued up behind Northwest for 787s, and the manufacturer is happy to expand its order book for the more expensive 777-200LR, people familiar with the situation said.
At present, Northwest, which had been the U.S. launch customer for the Dreamliner, has a firm order for 18 787 planes and options for many more. Delta's current order for 777-200LRs, two of which were delivered this year, foresees delivery of another three in 2009 and an additional five in following years.
The planned order revisions are part of Delta's effort to make sure that its network, as it melds its own routes with those of Northwest, has the right planes in terms of size and cost of operation for both its domestic flights and routes serving Europe, Africa, Asia and Latin America. The $2.6 billion acquisition of Northwest, completed in October, made Atlanta-based Delta the world's biggest carrier as measured by passenger traffic.
Delta declined to comment on specific order plans, but said that the long-term needs of a merged fleet would differ from those of each airline individually. "It comes down to the flexibility of the combined fleet and how we match capacity into the markets we serve," said Betsy Talton, a Delta spokeswoman. "Orders get adjusted depending on what's happening with the business."
A Boeing spokeswoman said the company remains in regular contact with its customers to make sure their pending orders match their needs. She declined to comment about specific dealings with any airline.
The people familiar with Delta's plans said the airline still sees a use for the 787, but the merged carriers already have planes -- such as the Airbus A330 aircraft flown by Northwest and Delta's Boeing 767s -- that could easily serve the same routes and meet the same capacity needs for several years.
Delta still plans eventually to take a "significant number" of 787s, one of these people said, but airline officials are more inclined to take a slightly larger version of the 787 that Boeing is developing for delivery in 2012.
Far more important to Delta's future route strategy is the 777-200LR, the longest-range model of the 777 family and a plane that can help it serve more distant destinations like Shanghai and Johannesburg, South Africa, that the airline has been adding to its network recently.
Delta would become one of the first 787 customers to offer to back away from coveted early delivery slots for the jetliner. Despite continuing production snags, Boeing has booked 895 orders for the twin-engine, fuel-efficient aircraft. At average list prices and without the discounts given to major airlines on many big aircraft orders, a 787 sells for $178.5 million and a 777-200LR costs about $243 million.
Delta is one of three U.S. airlines that earlier this decade signed preferential customer agreements with Boeing, ensuring lower prices and priority in order and delivery schedules in exchange for big order volumes.
The company has said recently that the complexity of its merged fleet and route network will lead it to consider aircraft from Airbus and other manufacturers, too. Before its merger with Northwest, Delta flew only aircraft made by Boeing companies.
Associated PressDelta has yet to ask Boeing officially to change its orders for new planes.
Most notably, the company is likely to scale back a Northwest order for Boeing's new, but delayed, 787 Dreamliner, and ask the manufacturer to expand a Delta order for the 777-200LR, a long-range aircraft that carries at least 50 more passengers and would better enable the combined carrier to continue pursuing Delta's strategy to shift a greater percentage of its flights to long overseas routes.
No final decisions have been made regarding new aircraft, the people said, and Delta has yet to officially ask Boeing to alter its order book.
For Boeing, a change in Delta orders is unlikely to disrupt its manufacturing schedule or hurt its bottom line because other customers are queued up behind Northwest for 787s, and the manufacturer is happy to expand its order book for the more expensive 777-200LR, people familiar with the situation said.
At present, Northwest, which had been the U.S. launch customer for the Dreamliner, has a firm order for 18 787 planes and options for many more. Delta's current order for 777-200LRs, two of which were delivered this year, foresees delivery of another three in 2009 and an additional five in following years.
The planned order revisions are part of Delta's effort to make sure that its network, as it melds its own routes with those of Northwest, has the right planes in terms of size and cost of operation for both its domestic flights and routes serving Europe, Africa, Asia and Latin America. The $2.6 billion acquisition of Northwest, completed in October, made Atlanta-based Delta the world's biggest carrier as measured by passenger traffic.
Delta declined to comment on specific order plans, but said that the long-term needs of a merged fleet would differ from those of each airline individually. "It comes down to the flexibility of the combined fleet and how we match capacity into the markets we serve," said Betsy Talton, a Delta spokeswoman. "Orders get adjusted depending on what's happening with the business."
A Boeing spokeswoman said the company remains in regular contact with its customers to make sure their pending orders match their needs. She declined to comment about specific dealings with any airline.
The people familiar with Delta's plans said the airline still sees a use for the 787, but the merged carriers already have planes -- such as the Airbus A330 aircraft flown by Northwest and Delta's Boeing 767s -- that could easily serve the same routes and meet the same capacity needs for several years.
Delta still plans eventually to take a "significant number" of 787s, one of these people said, but airline officials are more inclined to take a slightly larger version of the 787 that Boeing is developing for delivery in 2012.
Far more important to Delta's future route strategy is the 777-200LR, the longest-range model of the 777 family and a plane that can help it serve more distant destinations like Shanghai and Johannesburg, South Africa, that the airline has been adding to its network recently.
Delta would become one of the first 787 customers to offer to back away from coveted early delivery slots for the jetliner. Despite continuing production snags, Boeing has booked 895 orders for the twin-engine, fuel-efficient aircraft. At average list prices and without the discounts given to major airlines on many big aircraft orders, a 787 sells for $178.5 million and a 777-200LR costs about $243 million.
Delta is one of three U.S. airlines that earlier this decade signed preferential customer agreements with Boeing, ensuring lower prices and priority in order and delivery schedules in exchange for big order volumes.
The company has said recently that the complexity of its merged fleet and route network will lead it to consider aircraft from Airbus and other manufacturers, too. Before its merger with Northwest, Delta flew only aircraft made by Boeing companies.
We'll know next week I guess.
