jegermeister
Well-known member
- Joined
- Jun 30, 2003
- Posts
- 249
Delta pares fleet for efficiency
By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 10/23/05 Anyone with a mismatched wardrobe can understand how Delta Air Lines assembled a hodgepodge of 14 aircraft types over the years.
Some planes just seemed to fit certain markets. Others were too good a bargain to pass up. A few were inherited.
MOST POPULAR STORIES
[FONT=arial, helvetica]EMAIL THIS[/FONT]
[FONT=arial, helvetica]PRINT THIS[/FONT]
[FONT=arial, helvetica]MOST POPULAR[/FONT]
DELTA'S MIX 'N' MATCH FLEET
Over the years Delta has amassed a fleet of 14 aircraft types, boosting maintenance and training costs. Now it's trying to thin them out.
Expendable now:
767-200 (14) 115 seats
737-200 (40) 128 seats
737-300 (21) 198 seats
Next to go:
MD-88 (120) 160 seats
MD-90 (16) 160 seats Keepers:
737-800 (71) 162 seats
757s (121) 178 seats
767-300 (28) 269 seats
767-300ER (59) 269 seats
767-400 (21) 304 seats
777 (8) 451 seats
Delta Connection planes:
CRJ 100/200 (243)
CRJ 700 (62)
ATR 72 (12)
Now, Delta seems intent on shedding its aging patchwork of varied jets in bankruptcy court and rebuilding around simpler, more fuel-efficient Boeings that come in three sizes: small, medium and large.
Stubby 737s will become the workhorse on short-haul routes, 757s/767s will fly longer domestic and some international trips, and massive 777s will be the mainstay for intercontinental flights.
There's also a possibility Delta could buy Boeing's ultralong-range 787 after the airline emerges from bankruptcy court.
That puts older 737s and 767-200s on the chopping block. And MD-88s and MD-90s — currently among the most numerous planes in the Delta fleet — are likely to go away gradually over the next five years as Delta replaces them with newer models.
"Fleet simplification has many economic benefits," said Michael Allen, an airline consultant at BACK Aviation Solutions. "It's part of Delta's transformation plan – and this is the time for Delta to get its fleet and its network right."
Under Chapter 11, Delta can unilaterally break aircraft leases, and Allen said Delta has indicated it will cancel contracts on "large numbers of aircraft."
Delta stopped flying three-engine 727s and MD-11s before landing in Chapter 11. And Allen said the company is following a pattern set by rival American Airlines, which went from 14 aircraft types four years ago to six today.
Delta declined to discuss its long-term fleet plans for this article.
But the company said as it entered bankruptcy protection last month that it intends to "simplify and streamline its fleet by targeting four aircraft types to be removed by the end of 2006."
Training, maintenance
Why does the number of airplane models matter?
Airlines with more types of planes generally spend more money on crew training and maintenance. For instance, it typically takes about six weeks for pilots to become qualified in a new aircraft, and they are motivated to switch regularly to gain promotions and pay rate increases.
Also, fewer aircraft types can make maintenance more predictable, and require fewer spare parts in inventory.
"It's hard to quantify the advantages of having fewer aircraft types," said Richard Aboulafia, aerospace analyst at the Teal Group. "But when you look around the industry, the carriers with simple fleets tend to do a lot better."
Southwest Airlines pioneered operating with a single type of airplane and has stuck with 737s throughout its history. Other start-ups like AirTran and JetBlue have followed, though each now operates two types of aircraft.
It's not possible for all airlines to keep things as simple as Southwest, which doesn't fly internationally or to many small markets served by regional jets. But experts say most would benefit from some thinning out.
"Commonality lowers maintenance and training costs and simplifies logistics," said Peter Arment, vice president at JSA Research, an aerospace consulting firm. "There are so many advantages that it becomes imperative. It ultimately has to happen for an airline to be successful."
Plan began in 1997
Delta actually launched its fleet simplification plan in 1997, when it inked a 20-year plane-buying deal with Boeing and chose a lengthened version of the 767 to replace Lockheed L-1011s.
The airline had split orders between Boeing and McDonnell Douglas, a practice that gave it bargaining leverage. Then McDonnell Douglas was absorbed by Boeing, and Delta elected not to do business with Airbus.
At the time, Delta executives spoke of a day when variously sized 737s, 757s, 767s and 777s would make up the entire fleet.
The biggest hurdle might be getting rid of the far more numerous MD-88s and MD-90s. Delta owns most of these planes, and there are no ready buyers. Also, they can be competitive on domestic routes — particularly if fuel prices drop.
"Delta has gone after the low-hanging fruit so far," Aboulafia said. "Selling the MD-11s was a no-brainer because the cargo operators love them and are willing to pay decent prices. And no one wants to fly 727s with today's fuel prices. It's cheaper to just park them in the desert."
New jets likely in the works
If Delta pares its fleet to 737s, 757/767s and 777s, all of its airplanes would be two-pilot, twin-engine Boeings with many similarities.
Delta had more than 600 airplanes in 2001 when the industry began its rapid contraction following the Sept. 11, 2001, terrorist attacks. It now has about 500, and that number is likely to fall as it terminates leases on older planes.
Delta still has its long-term buying deal with Boeing, though it has canceled some orders or options. But Aboulafia said the Atlanta-based airline is likely to continue revamping its fleet with newer jets even while it reorganizes in bankruptcy court. Delta has options to buy about 70 new 737s.
"The 737 is the gold standard for domestic flying," he said. "And the 777 is best in class for international. Delta just has to get rid of the overlap in the rest of its fleet."
By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 10/23/05 Anyone with a mismatched wardrobe can understand how Delta Air Lines assembled a hodgepodge of 14 aircraft types over the years.
Some planes just seemed to fit certain markets. Others were too good a bargain to pass up. A few were inherited.
- Fomer UGA punter, wife die in crash
- Attorney Jailed After Going to Court Drunk
- Wrong-way wreck kills 1, closes I-85N
- Police search for husband in teacher's death
- Falcons go into bye on a high
[FONT=arial, helvetica]EMAIL THIS[/FONT][FONT=arial, helvetica]PRINT THIS[/FONT][FONT=arial, helvetica]MOST POPULAR[/FONT]
Over the years Delta has amassed a fleet of 14 aircraft types, boosting maintenance and training costs. Now it's trying to thin them out.
Expendable now:
767-200 (14) 115 seats
737-200 (40) 128 seats
737-300 (21) 198 seats
Next to go:
MD-88 (120) 160 seats
MD-90 (16) 160 seats Keepers:
737-800 (71) 162 seats
757s (121) 178 seats
767-300 (28) 269 seats
767-300ER (59) 269 seats
767-400 (21) 304 seats
777 (8) 451 seats
Delta Connection planes:
CRJ 100/200 (243)
CRJ 700 (62)
ATR 72 (12)
Now, Delta seems intent on shedding its aging patchwork of varied jets in bankruptcy court and rebuilding around simpler, more fuel-efficient Boeings that come in three sizes: small, medium and large.
Stubby 737s will become the workhorse on short-haul routes, 757s/767s will fly longer domestic and some international trips, and massive 777s will be the mainstay for intercontinental flights.
There's also a possibility Delta could buy Boeing's ultralong-range 787 after the airline emerges from bankruptcy court.
That puts older 737s and 767-200s on the chopping block. And MD-88s and MD-90s — currently among the most numerous planes in the Delta fleet — are likely to go away gradually over the next five years as Delta replaces them with newer models.
"Fleet simplification has many economic benefits," said Michael Allen, an airline consultant at BACK Aviation Solutions. "It's part of Delta's transformation plan – and this is the time for Delta to get its fleet and its network right."
Under Chapter 11, Delta can unilaterally break aircraft leases, and Allen said Delta has indicated it will cancel contracts on "large numbers of aircraft."
Delta stopped flying three-engine 727s and MD-11s before landing in Chapter 11. And Allen said the company is following a pattern set by rival American Airlines, which went from 14 aircraft types four years ago to six today.
Delta declined to discuss its long-term fleet plans for this article.
But the company said as it entered bankruptcy protection last month that it intends to "simplify and streamline its fleet by targeting four aircraft types to be removed by the end of 2006."
Training, maintenance
Why does the number of airplane models matter?
Airlines with more types of planes generally spend more money on crew training and maintenance. For instance, it typically takes about six weeks for pilots to become qualified in a new aircraft, and they are motivated to switch regularly to gain promotions and pay rate increases.
Also, fewer aircraft types can make maintenance more predictable, and require fewer spare parts in inventory.
"It's hard to quantify the advantages of having fewer aircraft types," said Richard Aboulafia, aerospace analyst at the Teal Group. "But when you look around the industry, the carriers with simple fleets tend to do a lot better."
Southwest Airlines pioneered operating with a single type of airplane and has stuck with 737s throughout its history. Other start-ups like AirTran and JetBlue have followed, though each now operates two types of aircraft.
It's not possible for all airlines to keep things as simple as Southwest, which doesn't fly internationally or to many small markets served by regional jets. But experts say most would benefit from some thinning out.
"Commonality lowers maintenance and training costs and simplifies logistics," said Peter Arment, vice president at JSA Research, an aerospace consulting firm. "There are so many advantages that it becomes imperative. It ultimately has to happen for an airline to be successful."
Plan began in 1997
Delta actually launched its fleet simplification plan in 1997, when it inked a 20-year plane-buying deal with Boeing and chose a lengthened version of the 767 to replace Lockheed L-1011s.
The airline had split orders between Boeing and McDonnell Douglas, a practice that gave it bargaining leverage. Then McDonnell Douglas was absorbed by Boeing, and Delta elected not to do business with Airbus.
At the time, Delta executives spoke of a day when variously sized 737s, 757s, 767s and 777s would make up the entire fleet.
The biggest hurdle might be getting rid of the far more numerous MD-88s and MD-90s. Delta owns most of these planes, and there are no ready buyers. Also, they can be competitive on domestic routes — particularly if fuel prices drop.
"Delta has gone after the low-hanging fruit so far," Aboulafia said. "Selling the MD-11s was a no-brainer because the cargo operators love them and are willing to pay decent prices. And no one wants to fly 727s with today's fuel prices. It's cheaper to just park them in the desert."
New jets likely in the works
If Delta pares its fleet to 737s, 757/767s and 777s, all of its airplanes would be two-pilot, twin-engine Boeings with many similarities.
Delta had more than 600 airplanes in 2001 when the industry began its rapid contraction following the Sept. 11, 2001, terrorist attacks. It now has about 500, and that number is likely to fall as it terminates leases on older planes.
Delta still has its long-term buying deal with Boeing, though it has canceled some orders or options. But Aboulafia said the Atlanta-based airline is likely to continue revamping its fleet with newer jets even while it reorganizes in bankruptcy court. Delta has options to buy about 70 new 737s.
"The 737 is the gold standard for domestic flying," he said. "And the 777 is best in class for international. Delta just has to get rid of the overlap in the rest of its fleet."
