Delta Air Lines fleet renewal

From:         "Stephen D. Todd" <stephen.toddd@sympatico.ca>
Date:         20 Mar 1997 19:37:04 GMT
Organization: Sympatico
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Well we knew it was going to be a big order... Thursday March 20 1:21 PM
EDT, Delta Air Lines and The Boeing Company Agree On Exclusive 20-Year
Fleet Acquisition Plan. The plan includes 106 firm aircraft orders through
the year 2006 at a value of $6.7 billion (based on list price).  The plan
also includes 124 options and 414 rolling options for aircraft through
2018. Options are guaranteed delivery slots. Rolling options are a pool of
aircraft delivery positions that replace options as the options expire or
are exercised. This understanding includes firm base pricing on the firm,
option and rolling option aircraft.

Boeing will be the exclusive supplier of new aircraft for Delta through
the 20-year life of this fleet acquisition plan, subject to specific
conditions.

Boeing Aircraft Summary
Order Summary

            B737     B757     B767-300/ER   B767-400   B777-200   Total

Firm
 Aircraft    70        5         10          21           0        106
           (1998-    (1998-    (1998-      (2000-
            2006)     1999)     1999)       2001)

Options      60        20        10          24          10        124

Rolling
 Options    280        90        19          25           0        414

Total       410       115        39          70          10        644


Delta will be the launch customer for the 767-400. Delta expects the
first deliveries of B767-400s in the year 2000. 

The plan anticipates: 

-- Completing the retirement of the L-1011 wide-body fleet and replacing
them with B767-300ERs and B767-400s. 

-- Initiating retirement of the B727 fleet and beginning to replace them
with B737-600s, 700s, or 800s. 

-- Simplifying the fleet by removing non-standard B737-300 aircraft and
the MD-90 aircraft. 

No word on engine types as of yet.

Mr. Allen said the fleet acquisition plan supports Delta's global
strategy to: 

-- Build the company's U.S. hubs, strengthening Delta's leading position
in the east and creating targeted growth in the west. 

-- Strengthen Delta's leading transatlantic position at (Helen's
favourite!) JFK Airport in New York and across the North Atlantic. 

-- Exploit competitive opportunities through Delta Express and other new
Delta products. 

-- Build a global network with Delta flying where profitable and
possible or, when that's not possible, with alliance and code-share
partners. 

-- Penetrate new markets in Asia and Latin America through Delta flying,
or through alliance and code-share agreements with other airlines. 

-- Create distinctive customer service in all Delta markets. 

-- Hit corporate financial targets. 

Delta carries more passengers worldwide than any other airline. Delta,
the Delta Shuttle, Delta Express, the Delta Connection carriers and
Delta's Worldwide Partners operate more than 4,950 flights each day to
315 cities in 40 countries. SOURCE Delta Air Lines 


Best Regards,

Steve.
-- 
PS: I'm going to miss the L-1011's.