Delta to sell 38 Boeing planes, orders 10 more

[Ari707]

NEW YORK - Delta Air Lines Inc. said Thursday it will sell 38 Boeing Co. airplanes after delivery as part of its bankruptcy, but that it will order 10 more planes and convert an existing order of five planes to longer-range aircraft to match its restructuring plans.

Delta, which has been operating under bankruptcy protection since September 2005, said it has agreed to sell 15 Boeing 737-800 aircraft to Aviation Capital Group, the airplane leasing company unit of Pacific LifeCorp., and 23 planes to Babcock & Brown Aviation Finance Ltd.

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Delta said that it would order 10 Boeing 737-70 aircraft and convert five firm orders for 777-200ERs to longer-range 777-200LRs.

The company said the moves will enable it to expand internationally and fly new routes. The transactions are subject to bankruptcy court approval. The company reiterated that it plans to emerge from bankruptcy in the first half of 2007 as an independent carrier. US Airways is trying to buy the company.

Delta said it would provide more guidance on fleet plans in its reorganization plan to be filed later this month. Delta said it has booked $400 million in fleet savings out of a projected $450 million.

Delta agreed in December of 2005 to sell 10 Boeing planes to CIT Group Inc. after delivery, due to start in 2007.

[T-Bird76]

Sounds like a sell and lease back program. jetBlue does this, they but their planes sell them and then lease them back.

[Ari707]

I wonder what their plans are for the 777-200lr's?

[MarkLawrence]

Rumors I have heard with the 200LRs are Mumbai, Johannesburg and Sydney - but - the Delta folks can probably answer better....

[Nonstop2AUH]

This is kind of exciting, especially the international part, and I hope they get to see it through instead of becoming part of Doug Parker's financially-engineered conglomerate. They have a shot here at doing something really different if given enough time.

I flew DL earlier this week and many of the employees were wearing a button that said "Keep Delta MY Delta." This reminded me of similar such buttons from the days when Pan Am and Eastern were struggling to stay alive and I had to stop and say something supportive to the captain and lead FA before disembarking. Delta has a great history but, more importantly, alot of employees who worked hard the last 5 years to see them through the 9/11 aftermath and the bankruptcy and their reward for this shouldn't be a pink slip from America West and Citibank.

[Matt Molnar]

They have a shot here at doing something really different if given enough time.

With the same old management that's run them into the ground? I'd like to see it, but it seems unlikely.

[T-Bird76]

They have a shot here at doing something really different if given enough time.

With the same old management that's run them into the ground? I'd like to see it, but it seems unlikely.

DAL's current managment isn't the team who ran them into the ground, their entire top brass was changed when they went into Chap 11.