Huge new Delta order imminent!

[Maximillian_Jenius]

Delta May Be a Big Boeing 787 Buyer

Overseas-Growth Plan
Leads Carrier to Weigh
125 Long-Range Jets
By PAULO PRADA
June 19, 2007; Page A2

Delta Air Lines Inc., in a sign of its resurgent financial strength and willingness to spend heavily as it expands outside the U.S., is likely to order as many as 125 of Boeing Co.'s new 787 jetliners by the end of this year, its operating chief said.

The order, still being negotiated as Delta mulls potential seat configurations for the planes and how much they could cost to operate and maintain, would be valued at an estimated $20 billion at list prices, although such orders normally carry steep discounts. The 125 would likely include options to buy planes as well as firm orders.

Delta also hasn't determined exactly how many 787s it will need to fulfill its international ambitions, but the Atlanta carrier is weighing "a massive order over a long period of time," Jim Whitehurst, Delta's chief operating officer, said in an interview. Executives at the second-largest U.S. carrier by stock-market value, after Southwest Airlines Co., expect the 787 to eventually replace 104 Boeing 767s now in Delta's fleet.

If Delta's plans remain on track, the order would be Boeing's largest yet for the 787 from a U.S. carrier. The 787 has sold strongly since Boeing began to market it, and the Chicago company has said it wants to move at a measured pace to avoid manufacturing snafus. Boeing says the plane is sold out till almost 2015 for newcomers, but airlines such as Delta that have options from previous years should be able to get limited numbers earlier.

A major purchase also would show how aggressively Delta is striving to grow now that it has emerged from a financial tailspin that forced it into bankruptcy proceedings in 2005. Since exiting from bankruptcy in April, Delta has been forging ahead with a strategy to limit its exposure to lackluster U.S. routes while ramping up in international markets where profit margins typically are higher.

To serve non-U.S. destinations better, though, Delta needs to increase the range of its fleet by making its airplanes more efficient and replacing its aging 767s, some dating back to the 1980s, with more-modern, longer-range aircraft. The long-range, twin-aisle 787 still is being developed by Boeing but is set to make its public debut next month. It is scheduled to go into service next May, when Boeing delivers its first 787 to Japan's All Nippon Airways.

A large plane order would help Delta make up for lost time while it was slashing debts and costs and reorganizing its route network during bankruptcy. Mr. Whitehurst said Delta must "make significant expenditures on systems that we frankly starved for the last several years."
In addition to new planes, Delta plans to spend an average of more than $1.2 billion a year through 2010 on aircraft refurbishments, new baggage-handling equipment, airport improvements, updated computer systems and other improvements.

Delta is expected to announce today that it will outfit more than 60 Boeing-made 737s, 757s and 767s in its fleet with winglets, which are wing-end attachments designed to save fuel. Already used by Continental Airlines Inc. and Southwest, winglets should help Delta fly aircraft longer distances while saving up to $25 million per year on fuel costs.

The project is expected to cost about $50 million, based on industry prices.

Separately, Delta's board has instructed an executive-search firm to include outside candidates in its list of possible contenders to succeed Chief Executive Gerald Grinstein, who plans to retire as soon as the company's directors can find a successor. The move isn't seen as diminishing the prospects of Mr. Whitehurst and Ed Bastian, Delta's chief financial officer, who still are considered favorites to become CEO.

In 4 p.m. composite trading on the New York Stock Exchange, Delta was at $18.54, off 34 cents, and Boeing was at $97.40, off 75 cents.

[bike21]

Nice! The only thing keeping me from considering applying to Delta are base locations (don't wanna commute), but the 787 is one sweet bird! The 'airplane nerd' in me wants to fly the B787, B747 or A340 eventually

[MQAAord]

Meh, speculated orders are fine. Actual orders are great. But I don't believe anything for real til I see it parked on the ramp in front of me.

[Doug Taylor]

S'actly.

[bike21]

Word up.

[Kingairer]

CALL ME

[Doug Taylor]

There's A LOT of rumors floating around the lounge these days! Some good, some outrageous, some just floated because I think Whitehurst likes seeing how pilots gossip!

[tonyw]

There's some show going on in Le Bourget right about now, isn't there?

I don't think Boeing or Airbus would try to make a splash there or anything. Nah, never happen.

And announcing something with a US based carrier wouldn't make a splash at all. Nothing like that.

Do I even need the sarcasm tag?

[Maximillian_Jenius]

Originally Posted by MQAAord

Meh, speculated orders are fine. Actual orders are great. But I don't believe anything for real til I see it parked on the ramp in front of me.

Love the avatar Amber!

[Velocipede]

Never believe aircraft order rumors until the airplanes are on the ramp AND the maintainence logs are inside.

[Doug Taylor]

I couldn't get out the camera phone fast enough yesterday, but you could see the airshow from the hold short line in CDG. Maybe when I get in tomorrow, I should see if the other FO and/or captain want to head out there on the RER to check it out.

But then I couldn't sleep in this morning long enough so I'll probably be a basket case once we finally get to CDG!

[MQAAord]

Originally Posted by Maximillian_Jenius

Love the avatar Amber!

Thank you

The most recent picture anyone here had seen was like, 6 years old. So on a whim I took that picture with the PhotoBooth program on my Mac

[tonyw]

Originally Posted by Doug Taylor

But then I couldn't sleep in this morning long enough so I'll probably be a basket case once we finally get to CDG!

It's actually really cool. The only catch is I'm not sure if they'll let you in there or not without paying because if they go with the same schedule as they did when I was there, industry only days go until Friday. On Friday, the general population gets to go in.

They are absolute pricks when it comes to having the right badge to get in. One of my friends who was a CDG based FA for United tried using her airline ID and they said no even though she was working a booth there. She had to get someone from the booth to come and escort her in.

I think the time that would be the most fun for you would be when the planes fly. That started at about 1130 and went until about 130 if I recall correctly.

The rest of the time, you're just going from booth to booth and talking to people. There's not too much fun in that unless you're getting commissions for selling ads to them.

[Doug Taylor]

Ehhh, nevermind!

[NJA_Capt]

Am I the only one who thinks US based airlines need to strengthen their HOME MARKET before trying to serve every country on the planet? It's like the guy on the block with the unkept yard starting a lawn care business.

Don't get me wrong, I am glad to see any airline expand. I just want to see things improved stateside first. I know International flights have more revenue, but when US routes are neglected and foreign carriers start flying stateside, there will be no room to complain.

[surreal1221]

Yeah, I'm really not sure what to think about this.

How about Delta reward their employees first. . .then over time purchase these birds.

Nah, that would make labor happy.

NJA_Capt, why would the legacy airlines focus on their domestic structure when they have "Regional" airlines to sell the work out to?

[jtrain609]

Originally Posted by surreal1221

Yeah, I'm really not sure what to think about this.

How about Delta reward their employees first. . .then over time purchase these birds.

Nah, that would make labor happy.

Expansion is good bro, be happy if this happens because it means more seats that need to be filled and that means that the current Delta pilots are going to do better than they are today.

Not everything that happens in this business is bad for the employee's.

[surreal1221]

No, I know, and I thought about that exact thing.

People upgrading, and at a 125 plane order. . .that's a lot of upgrading.

Don't get me wrong, I'll enjoy the sight, but I want the employees to be respected for what THEY have done. It hits real close to home, hell, it nearly hits home exactly - I just don't live under the roof anymore.

Any talk about pay rates yet?

[Future DIA Pilot]

$20 billion... that's a lot of airline tickets to sell.

[Velocipede]

Thank God Delta is buying Boeing...unlike USscare who ordered 90 Scarebuses.

[Brand X]

Originally Posted by surreal1221

No, I know, and I thought about that exact thing.

People upgrading, and at a 125 plane order. . .that's a lot of upgrading.

Don't get me wrong, I'll enjoy the sight, but I want the employees to be respected for what THEY have done. It hits real close to home, hell, it nearly hits home exactly - I just don't live under the roof anymore.

Any talk about pay rates yet?

If the order goes through, the article said that almost all the new planes will be replacements, not additional tails. Don't expect a massive expansion of the pilot group if this order happens.

[surreal1221]

Originally Posted by Brand X

If the order goes through, the article said that almost all the new planes will be replacements, not additional tails. Don't expect a massive expansion of the pilot group if this order happens.

Don't just quote me then. . .quote jtrain for suggesting that this may be a benefit. . .I'm not holding my breath.

Still though, Delta will be upgrading guys and gals to fly this one. . .leaving seats to be filled where the vacancies exist.

[E_Dawg]

Originally Posted by NJA_Capt

Am I the only one who thinks US based airlines need to strengthen their HOME MARKET before trying to serve every country on the planet? It's like the guy on the block with the unkept yard starting a lawn care business.

Don't get me wrong, I am glad to see any airline expand. I just want to see things improved stateside first. I know International flights have more revenue, but when US routes are neglected and foreign carriers start flying stateside, there will be no room to complain.

\

I think it's cheaper for them to contract a lot of domestic stuff out to the lowest bidder, while keeping the name brand. Like you said, intl' is where da $$'s at.. At least from what little I understand.

[Cruise]

Originally Posted by MQAAord

Meh, speculated orders are fine. Actual orders are great. But I don't believe anything for real til I see it parked on the ramp in front of me.

Ding ding ding.....we have a winner!

[tonyw]

Originally Posted by NJA_Capt

Am I the only one who thinks US based airlines need to strengthen their HOME MARKET before trying to serve every country on the planet?

The margins are much higher on international flights. Plus, you get more loyal travelers who aren't gonna ditch you for ten bucks.