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Delta eyes deal for 50 wide-bodied jets

  • Delta Air Lines (DAL) has requested proposals from Boeing (BA) and Airbus (EADSF) for a booking of up to 50 wide-body jets to replace the carrier's fleet of Boeing 747-400 and 767-300ER planes, whose average age is 20 years.
  • Delta is evaluating Boeing's 777 and 787, and Airbus' A330 and A350, although it only wants planes that are already proven and not those that are still being developed.
  • Any tender could be worth over $10B at list prices, although Delta CEO Richard Anderson has played down the prospects of a quick deal.
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Comments (7)
  • thomas85225
    , contributor
    Comments (563) | Send Message
    With new orders for 747-8 how much longer can Boeing kept the assemble open
    and its subcontractor under contact, the 747 fuselage where build by Northrop in Hawthorne CA still 1997 when Northrop sold it commercial division to Vought


    Many airlines are not replacing there exist Boeing aircraft, since
    Boeing CEO James McNerney, and GE CEO Jeff" Immelt are member of the board on the Import-Export Bank, that made better loan to foreign airlines at a lower interest rate
    Delta, and other Airline Group have file law suits against the U.S. Export-Import Bank over Air India Loan Guarantees


    Delta CEO prefers stability over flash in airplane fleet


    Delta has orders 18 787s and 109 Boeing 737s, Delta Air Lines said it will buy 40 more Airbus planes


    Delta Air Lines fleet



    JAL lines, Delta Air Lines, British Airways, Singapore Airlines, Lion Air, American Airlines, Mexican budget airline VivaAerobus , Air China, Philippine Air, Vietnam's VietJet, ANA (Discussions for A-350 Orders) are now ordering from Airbus


    Air India and Jet air has decided to sell five out of its eight Boeing 777-200LR aircraft owing to changes in market dynamics due to the Global recession, steep increase in fuel prices and poor yields on non-stop routes, and the 777-200 being a gas Guzzler



    The A350 is in production, in flight test, as flown at the airshow in 2013 and 2014 and will be delivery in 2015
    the 777-X, 787-10 and 737MAx is still on the drawing board and may be delivery in 2020.
    4 Apr 2014, 08:36 AM Reply Like
  • PS1EAI
    , contributor
    Comments (52) | Send Message
    Smart, very conservative, and smart. Airlines typically spend too much money on new equipment. The aircraft they buy is new generation, full of bugs that have to be worked-out, and the capital expenditure is on credit. Refurbishing older aircraft
    is expensive ,but it's a hell'uva lot less than purchasing new, and the interiors are just as nice. There will come a time when new equipment must be purchased, a maddening decision - made by marketing, accounting (finance), and maintenance depts.
    In my humble opinion, Delta is doing everything right. I hope my recent purchase of Delta common stock is also the right thing.
    4 Apr 2014, 11:57 AM Reply Like
  • Pony01
    , contributor
    Comments (292) | Send Message
    Delta's decisions on fleeting can be judged by comparing it to an industry peer. By the end of 2015 Delta will have $7 billion in debt. In comparison, American is on track to have $25 billion in debt with its brand new fleet. With that fleet bring more passengers? Could they charge more for tickets simply because it's flying newer airplanes? Every billion dollars in debt at today's interest rates is worth $40 million to the bottom line. That's a real increase to the bottom line. And you financial types, spare me your hyperbole on the equation V=D+E, where V=Value, D=Debt, and E=Equity. Although it's true, when Debt is considerable more than Equity bankruptcy starts to rear its ugly head if the organization isn't growing - GM is a classic example.
    5 Apr 2014, 09:39 AM Reply Like
  • thomas85225
    , contributor
    Comments (563) | Send Message
    Airlines has come and gone and most airlines today had meager with other airlines and most airlines have file for bankruptcy



    Singapore Airlines reaches a make or break point | Aspire ...
    Aug 5, 2013 ... It sounds all too familiar when Singapore Airlines (SIA) reported yet another disappointing quarterly results blaming on high fuel prices,



    With Airline stock price are below $100 dollars a share, how does airlines buy new aircraft costing $70 million to $360 million and pay for all the maintained, operators cost of there aircraft fleet and all the personals with aircraft need to be replace every 20 years


    Boeing stock price is over $100 but Boeing suppliers and the airlines are below 100 a share


    Boeing stock price was $19.77 on 3-29-2003 when Boeing launch the 787


    Boeing has not update its commercial aircraft produced lines or modernizes its assembly plant to meet the need of 35,000 new aircraft over the next 20 years
    Boeing has sold its fabrication plants see



    Spirit AeroSystems and Triumph Group build parts for Boeing


    Spirit AeroSystems Holdings, Inc. $27.06 and Spirit has taken charge off


    2014 Spirit AeroSystems posts loss on charges, shares down 22 percent ...


    2013 Spirit AeroSystems to take $350 million charge, plans to sell ...


    Triumph Group Inc Last $66.10 USD
    Alcoa Inc $11.19+0.14
    Southwest Airlines Co. 21.43+0.47
    Delta Air Lines, Inc. 31.65+0.76
    5 Apr 2014, 09:19 PM Reply Like
  • Pony01
    , contributor
    Comments (292) | Send Message
    What's your thesis?
    5 Apr 2014, 09:31 PM Reply Like
  • thomas85225
    , contributor
    Comments (563) | Send Message
    Singapore Airlines reaches a make or break point

    5 Apr 2014, 09:46 PM Reply Like
  • Pony01
    , contributor
    Comments (292) | Send Message
    Singapore Airlines' problem is two-fold since the crash of M370 and Korean Air's botched landing at San Francisco. Most important is the glut of LCCs in East Asia. There is so much new lift being created by different countries and companies, it's difficult to fill seats unless you undercut your LCC competitor because they are flying new equipment, usually on the same routes. This alone was hurting carriers like Singapore, Cathay, Qantas, etc. Now, throw in the realization from 24/7 coverage of Malaysia 370. A not quite first world country flying first world airplanes with questionable procedures for hiring pilots, maintenance, and a society based on secrecy and one party rule. This is what will hurt Singapore and their ilk in the short and medium term. Consolidation can't come quick enough; and it won't.
    I think there will also be a "great reset" (I haven't read this anywhere) towards airline systems that have a western culture toward flying international passengers with an open system and good controls on checking passengers for terrorist leanings and training aircrew with modern techniques while routing out poor pilot candidates. I believe most people who can afford international travel will pay an extra amount for a ticket to reduce risk on arriving in one piece.
    6 Apr 2014, 10:23 AM Reply Like
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