Dow Jones Business News
Delta Air Lines Announces Planned Fleet Changes To Reduce Cap
Tuesday February 10, 6:35 pm ET
ATLANTA -(Dow Jones)- Delta Air Lines Inc. (NYSE
AL - News) plans to limit the size of its Boeing 777-200 fleet, as the nation's No. 3 carrier continues efforts to lower costs companywide and bolster its balance sheet.
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In a press release Tuesday, the airline said it plans to sell two Boeing 777- 200 aircraft scheduled for delivery in 2005, a transaction that would cut Delta's capital spending requirements by about $300 million through 2005.
Delta and Boeing have agreed to defer until the second half of 2005 delivery of these two aircraft, and Delta has struck a deal with an undisclosed third party to assist in the sale.
Additionally, Delta plans to either acquire other Boeing planes instead of three Boeing 777-200 aircraft scheduled for 2006 delivery, or to sell those three aircraft. The company hasn't identified which aircraft it would buy in lieu of the Boeing 777-200s.
The company noted that it intends to keep operating the eight Boeing 777-200 aircraft in its fleet and is "pleased" with their operational performance.
Last week, Delta put on hold its plans for a nationwide rollout of its low- cost airline, Song, as it determines whether pursuing the discount option makes financial sense. The carrier, which is seeking union wage concessions it says are needed to stay competitive, trimmed $1.2 billion from annual operating costs last year and is looking for another $1 billion in savings this year.
The company had cash of $2.9 billion at the end of 2003 but has about $12.5 billion in debt, of which about $1 billion matures this year.
Delta Air Lines Announces Planned Fleet Changes To Reduce Cap
Tuesday February 10, 6:35 pm ET
ATLANTA -(Dow Jones)- Delta Air Lines Inc. (NYSE
ADVERTISEMENT
In a press release Tuesday, the airline said it plans to sell two Boeing 777- 200 aircraft scheduled for delivery in 2005, a transaction that would cut Delta's capital spending requirements by about $300 million through 2005.
Delta and Boeing have agreed to defer until the second half of 2005 delivery of these two aircraft, and Delta has struck a deal with an undisclosed third party to assist in the sale.
Additionally, Delta plans to either acquire other Boeing planes instead of three Boeing 777-200 aircraft scheduled for 2006 delivery, or to sell those three aircraft. The company hasn't identified which aircraft it would buy in lieu of the Boeing 777-200s.
The company noted that it intends to keep operating the eight Boeing 777-200 aircraft in its fleet and is "pleased" with their operational performance.
Last week, Delta put on hold its plans for a nationwide rollout of its low- cost airline, Song, as it determines whether pursuing the discount option makes financial sense. The carrier, which is seeking union wage concessions it says are needed to stay competitive, trimmed $1.2 billion from annual operating costs last year and is looking for another $1 billion in savings this year.
The company had cash of $2.9 billion at the end of 2003 but has about $12.5 billion in debt, of which about $1 billion matures this year.