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Northwest plans to defer delivery of airplanes
Liz Fedor
Star Tribune
Published Oct 22, 2002
Northwest Airlines said Monday that it's talking with its suppliers about deferring delivery of some new airplanes that it was set to receive between July 2003 and March 2004.
Northwest Spokesman Bill Mellon confirmed those discussions, but he declined to specify the number of aircraft affected by the deferrals.
The Eagan-based carrier does business with three airplane companies -- Boeing, Airbus and Bombardier, which makes Canadair Regional Jets. Its engine suppliers are General Electric and Pratt & Whitney.
On Thursday, Northwest said that its flight capacity in 2003 will be 10 percent less than it was in 2000. Flight capacity measures the number of seats for sale on the market.
Because of smaller capacity, Northwest needs to fly fewer planes. So it's attempting to put the brakes on orders it placed in the late 1990s and 2000.
Mellon said the airline hopes to reach agreement soon on a deferral schedule.
Northwest did not make changes to its 2002 delivery schedule. This year, the airline is buying or leasing 59 planes: two Boeing 747-400s; 10 Boeing 757-200s and 757-300s; 26 Airbus A319s and A320s and 21 Canadair Regional Jets.
Before the deferral talks began, Northwest was scheduled to receive 53 airplanes in 2003, including nine Boeing 757-300s, 16 Airbus A319s and A320s, six Airbus A330s and 22 Canadair Regional Jets.
By delaying delivery of planes, Northwest can conserve its cash. The list price for a Boeing 757-300 is $82 million to $89.5 million.
Northwest owns 317 planes and leases 201. CEO Richard Anderson said Thursday the airline doesn't have to make note payments on many of its planes, including some DC-9s, 747s and DC-10-30s.
-- Liz Fedor is at [email protected].
Liz Fedor
Star Tribune
Published Oct 22, 2002
Northwest Airlines said Monday that it's talking with its suppliers about deferring delivery of some new airplanes that it was set to receive between July 2003 and March 2004.
Northwest Spokesman Bill Mellon confirmed those discussions, but he declined to specify the number of aircraft affected by the deferrals.
The Eagan-based carrier does business with three airplane companies -- Boeing, Airbus and Bombardier, which makes Canadair Regional Jets. Its engine suppliers are General Electric and Pratt & Whitney.
On Thursday, Northwest said that its flight capacity in 2003 will be 10 percent less than it was in 2000. Flight capacity measures the number of seats for sale on the market.
Because of smaller capacity, Northwest needs to fly fewer planes. So it's attempting to put the brakes on orders it placed in the late 1990s and 2000.
Mellon said the airline hopes to reach agreement soon on a deferral schedule.
Northwest did not make changes to its 2002 delivery schedule. This year, the airline is buying or leasing 59 planes: two Boeing 747-400s; 10 Boeing 757-200s and 757-300s; 26 Airbus A319s and A320s and 21 Canadair Regional Jets.
Before the deferral talks began, Northwest was scheduled to receive 53 airplanes in 2003, including nine Boeing 757-300s, 16 Airbus A319s and A320s, six Airbus A330s and 22 Canadair Regional Jets.
By delaying delivery of planes, Northwest can conserve its cash. The list price for a Boeing 757-300 is $82 million to $89.5 million.
Northwest owns 317 planes and leases 201. CEO Richard Anderson said Thursday the airline doesn't have to make note payments on many of its planes, including some DC-9s, 747s and DC-10-30s.
-- Liz Fedor is at [email protected].
