New Arizona, Il Duce/Warlord
Tuesday, December 2
Delta may reduce 787 orders, boost 777-200LR: Delta Air Lines plans to cut back on Boeing 787 Dreamliner orders placed by its Northwest Airlines subsidiary, while boosting orders for the more expensive 777-200LR, sources tell The Wall Street Journal. "It comes down to the flexibility of the combined fleet and how we match capacity into the markets we serve," said Delta Spokeswoman Betsy Talton, without commenting on specific plans. "Orders get adjusted depending on what's happening with the business." With 18 firm orders for the 787, Northwest had been the Dreamliner's launch customer in the U.S. Speaking of Boeing aircraft, here are the latest delivery dates of Delta Aircraft that were delayed due to the recent IAM strike. The new delivery dates are as follows: 777-200LR ships 7103, 7104, and 7105 are all set for sometime in March 2009. Ship 7106 is still pending and will be announced soon. For the 737-700 aircraft we can expect ships 3605 on 12/31/08 with ships 3606 and 3607 in January 09 with 3608 to be announced at a later date. Note, Delta 737-700 aircraft will drop the 3100 number designation and use 3600 numbers to avoid conflict with Northwest’s A 319 aircraft numbers.
Orange County airport moves forward with $652M terminal project: John Wayne Airport plans to move forward with a $652 million terminal project that will provide an alternative to the busy Los Angeles International Airport. The project at the Orange County airport includes the construction of a 250,000-square-foot terminal, as well as a parking structure and other renovations. The new terminal is scheduled to be completed by 2011.
Continental-United alliance draws protest from Delta: Delta Air Lines has filed a protest with the Department of Transportation, seeking to block Continental Airlines from gaining antitrust immunity for its planned alliance with United Airlines and Lufthansa. Delta claimed in its filing that the alliance would allow Continental to dominate routes to Brazil and China, but Continental insists that its application is based on a desire to deepen its relationship with the other two carriers. The application awaits DOT approval.
Mesa seeks Aloha name for inter-island airline: Regional carrier Mesa Air Group may soon begin inter-island flights in Hawaii under the name Aloha Airlines. Yucaipa Cos., the former majority shareholder of Aloha, says it will license the Aloha name for $2 million and roughly 2.7 million Mesa shares. The deal, part of a lawsuit settlement reached between Mesa and Aloha, still requires bankruptcy court approval.
Australia to relax Qantas ownership rules; BA already in talks: The Australian government plans to ease limits on foreign ownership of flagship carrier Qantas Airways while continuing to protect lucrative routes between Australia and the U.S. Under a government proposal released Tuesday, foreign airlines could buy as much as 49% of the Australian carrier, up from 35% under current law. The proposal also stipulated that U.S. routes would continue to be limited to Qantas, United Airlines and V Australia, a planned offshoot of Virgin Blue. Almost immediately after the Australian government issued its green paper on the future of aviation, British Airways announced it was in merger talks with Qantas.
Analysts watching for further airline industry cutbacks: Airline executives speaking at a conference in New York today are expected to detail further capacity cuts necessitated by weakening demand for air travel. Despite the deep cuts already made and the collapse in oil prices, some analysts believe the airlines will have to further reduce their service in order to achieve profitability. "There's more capacity now with Open Skies at the same time you're having a severe downturn in potential demand," says Ray Neidl, an analyst at Calyon Securities. "But once we get through this financial crisis, and hopefully it will happen by next spring, people will start traveling." Richard Anderson and Ed Bastian outlined a plan to decrease capacity for Delta and Northwest next year. Ed shared details of our strategy in a presentation during the Credit Suisse Global Airline Conference Tuesday morning. Systemwide capacity will be down 6% to 8%. Domestic capacity will be down 8% to10% and international capacity will be down 3% to 5%. These numbers include the full impact of previously announced 2008 capacity reductions.
One morning I shot an elephant in my pajamas. How he got into my pajamas I'll never know.