Delta Announces Order for 100 Boeing 737-900ER Aircraft
ATLANTA, Aug. 25, 2011 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today announced plans to purchase 100 Boeing 737-900ER aircraft for delivery between 2013 and 2018 as it retires older mainline jets and upgrades its fleet.
The order will enable Delta to add 100 fuel-efficient, state-of-the-art 180-seat aircraft to its fleet, replacing on a capacity-neutral basis older technology aircraft that will be retired from the fleet. The new aircraft will improve the company*s profitability while providing customers with an industry-leading on-board experience. With a range of 3,200 nautical miles, the Boeing 737-900ER can operate on any domestic route offered by Delta.
**A key component of Delta*s strategy is making prudent investments for the future while maintaining our financial and capacity discipline,** said Richard Anderson, Delta*s chief executive officer. **With this next-generation Boeing aircraft, we can give our customers a superior in-flight experience while at the same time improving our shareholder returns.
**I want to commend all the manufacturers who participated in this process. Their innovation in developing fleet solutions for the future resulted in several very competitive proposals,** he said.
Financially Sound Investment
Delta will begin taking deliveries of the aircraft in the second half of 2013, with 12 aircraft in 2013, 19 aircraft per year in 2014 through 2017, and the remaining 12 aircraft in 2018. Each aircraft has committed long-term financing.
The size and timing of the order will allow Delta to maintain its annual capital expenditure run rate between $1.2 billion and $1.4 billion over the next three years and will not impact the company*s $1.2 billion of capital expenditures projected for 2011. Capital discipline is key to the company achieving its $10 billion adjusted net debt target by 2013.
As a result of maintenance efficiencies and a 15 to 20 percent improvement in fuel consumption per seat, the Boeing 737-900ER will have lower unit costs than the older technology Boeing 757 and 767 and Airbus A320 aircraft that it will replace. The aircraft will be equipped with CFM56-7B engines produced by CFM International, a joint venture of General Electric Co. of the U.S. and Snecma of France.
**With significant savings from increased fuel efficiency and lower maintenance costs, these aircraft will be cash flow positive and earnings accretive from the first year of operation,** Anderson said.
Enhanced Customer Experience
Delta is more than halfway through a $2 billion, three-year investment to enhance the customer experience as a means of generating a unit revenue premium to the industry. The investments include improvements to Delta*s fleet, facilities and technology.
The 737-900ER will be Delta*s first aircraft to feature Boeing*s new **Sky Interior,** which offers expanded carry-on baggage space, a roomier, more airy cabin and an LED lighting system that provides different color schemes, such as a soft blue sky and a relaxing pallet of sunset colors.
Delta recently completed the installation of full flat-bed seats in the BusinessElite cabin of all Boeing 777 and 767-400ER aircraft, and began installing full flat-bed seats in its 767-300ER aircraft this month. To date, more than 25 percent of Delta*s widebody international fleet has received the upgrade and the airline*s entire widebody international fleet of more than 140 aircraft will be flying with full flat-bed seats in BusinessElite by the end of 2013.
This summer, Delta began offering its new Economy Comfort class on more than 160 Boeing 747, 757, 767, 777 and Airbus A330 aircraft. Located in the first few rows of the economy cabin, Economy Comfort features up to four additional inches of legroom, 50 percent more recline than Delta*s standard international economy class seats, and early boarding.
At the same time, the company has been investing in enhancing its domestic fleet, with in-flight WiFi on all two-class domestic aircraft, interior upgrades and the installation of additional First Class seating. Delta also will offer Wi-Fi on its entire dual-class regional fleet of 228 aircraft by the end of 2011.
Delta*s ongoing investment to enhance the customer experience also includes work underway on its new Terminal 4 at New York-JFK, opening in 2013, and the new Maynard H. Jackson Jr. International Terminal in Atlanta, opening in 2012. Pending final approval of an agreement between Delta and US Airways to transfer takeoff and landing rights at New York*s LaGuardia and Washington D.C.*s Reagan National airports, Delta also will spend $100 million to expand, renovate and consolidate terminals C and D at LaGuardia over the next two years.
NEW YORK--(BUSINESS WIRE)-- JetBlue (NASDAQ:JBLU) today announced it will collaborate with U.S. Customs and Border Protection (CBP) and SITA to test a new paperless and deviceless self-boarding process as part of ongoing trials to implement a biometric exit process in the future. JetBlue will be the first airline to integrate with CBP to use biometrics and facial recognitio... Readmore
NEW YORK--(BUSINESS WIRE)-- JetBlue Vacations (NASDAQ:JBLU) and Utrip today announced a partnership that helps travelers create a personalized, hour-by-hour vacation itinerary – including JetBlue flights, hotels and other amenities – online in just a few minutes. The trip planning portal, available through JetBlue Vacations, uses artificial intelligence and loc... Readmore
MINNEAPOLIS - Delta today introduced four self-service bag drop machines at Minneapolis-St. Paul International Airport as part of the airline*s commitment to transforming the travel experience with meaningful investments that make travel easy and enjoyable.
The $600,000 investment allows customers to quickly, securely and easily check ... Readmore
Delta began selling its Delta One suites and Delta Premium Select fare on June 17. The new Delta Premium Select cabin and the Delta One suite product enhancement will debut on Delta*s first Airbus A350, due to enter service in fall 2017 with its first flight taking place on Oct. 30, 2017, from Detroit (DTW) to Narita (NRT). Delta will be the first U.S. airline to take deliv... Readmore
Southwest Airlines Co. (NYSE: LUV) announced today the recipients of the 2017 Southwest Airlines® Heart of the Community Grants in partnership with Project for Public Spaces. Through Southwest Airlines* Heart of the Community program, Southwest Airlines is committed to building connections that bring People together to strengthen communities for a more resilient future. O... Readmore
LOS ANGELES, June 1, 2017 /PRNewswire/ -- United Airlines (UAL) today announced that it will introduce daily nonstop flights between its Los Angeles International Airport (LAX) hub and Singapore*s Changi Airport (SIN), effective Oct. 27, 2017 (westbound), subject to government approval. The flight between LAX and SIN will set the new distance record for any airline operati... Readmore
CHICAGO, June 13, 2017 /PRNewswire/ -- United Airlines (UAL) today announced an increase of service on 11 routes connecting the continental U.S. and Hawaii, offering customers more flights between the mainland and the Hawaiian Islands than any other carrier.
Beginning December 20, United will increase service from its hubs in Chicago, Denver, Los Angeles and S... Readmore
LOS ANGELES – American Airlines and the Los Angeles World Airports (LAWA) announced today that American would continue its investment at LAX, committing more than $1.6 billion over the next 15 years. The investment will go toward improvements of Terminals 4 and 5.
American*s letter of intent sets the framework for negotiation of a new agreem... Readmore
FORT WORTH, Texas, June 15, 2017 (GLOBE NEWSWIRE) -- For the first time ever, the Transportation Security Administration (TSA), working collaboratively with American Airlines, is testing a computed tomography (CT) scanner in one checkpoint lane of Terminal 4 at Phoenix Sky Harbor International Airport (PHX).