Delta Maint. Contracts Not Doing Well

[EricPalmer]

Interesting article. Seems various maintenance contracts that Delta has outsourced are running into challanges. Good reading.


ACTS Maintenance Deal With Delta In Trouble, Posts Loss

http://www.aviationnow.com/avnow/news/channel_comm_story.jsp?id=news/ACTS05125.xml

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Milton and ACTS are still frustrated with its large heavy maintenance contract with Delta. When the five-year deal was signed more than a year ago, it was hailed as one of the largest heavy maintenance outsourcing deals in the industry, worth about C$300 million to ACE.

The partnership, however, has been trying to Air Canada as it first had to deal with significant operational problems at its Vancouver base, where it worked on the Delta planes. Milton told analysts yesterday that everything is better from an operational perspective, but "we're not making money with this contract."

Maybe someone had a little boo boo with their PowerPoint briefing when they pitched the thing originally.

 

[Tim]

1 down 1 to go as with Delta and their brilliant idea to contract HMV work. Its always amazed me that they would do something like that and a few days later announce they have come new insourcing contract but still manage to lay mechanics off.