The impairment cost is high since Delta owns all 18 777s. Yet, on a more recent and hopeful note for the company, just last week, DL and the LATAM Airlines Group and its affiliates signed a trans-American Joint Venture Agreement that will marry the airlinesâ complementary route networks throughout the Americas. © 2021 Forbes Media LLC. Delta CEO Ed Bastian announced on Thursday that the airline will permanently retire its Boeing 777 fleet by the end of the year. The CEO said, “An important tool to help us achieve these goals is retiring older aircraft and modernizing our fleet as we plan for the future. The 777 has not been a core part of Deltaâs fleet the way it is at American Airlines and United Airlines, which have over 60 777s each. Delta Air Lines said it would retire its Boeing 737-700 fleet as well as “portions” of its Boeing 767-300ER and Airbus A320 fleets this year. All Rights Reserved, This is a BETA experience. Firstly, as technology develops, newer aircraft of similar size and range achieve higher rates of fuel efficiency. The MD-90s will exit by the end of June, alongside Deltaâs MD-88s. Do you think that the aviation industry will recover by 2024? Delta Air Lines is accelerating the retirement of its Boeing 777 fleet, as the airline continues to make cost-saving measures amid the coronavirus pandemic. MINNEAPOLIS (FOX 9) - Delta Air Lines is permanently retiring its Boeing 777 fleet by the end of the year, the company announced Thursday. Deltaâs Boeing 777s were not supposed to be retired so early. The agreement, pending regulatory approval, will offer a seamless travel experience and extensive connectivity throughout the region. Marana, Arizona is where aircraft go to retire but some airlines are sending their jets there to ride out the COVID-19 crisis affecting the industry. The industry has gone through mass furloughs, layoffs, aircraft storage and retirement,... PRESTWICK â The Antonov AN225 Mriya has touched down in Glasgow Prestwick Airport (PIK) today. Delta said the 777 fleet included 18 aircraft. The latest travel news, views and articles from a wide range of sources and places brought to you by Business Travel Executive. According to Bastian, reducing DL’s cash bleeding means that for the next two to three years, the airline will have a smaller network, fleet and operation in response to the substantially reduced customer demand. Here’s Why That’s No Reason to Sell the Stock. Delta expects to book a $1.4 billion-$1.7 billion non-cash impairment for the 18 777s and 27 MD-90s it will also retire. According to Investopedia, fuel accounts for 10-12% of operating expenses. Delta to retire Boeing 777 from fleet Air Traveller PH Staff May 15, 2020. A Global Review of Commercial Flight since 1994: the leading Commercial Aviation publication in North America and 35 nations worldwide. The retirement will accelerate the airline’s strategy to simplify and modernize its fleet, while continuing to operate newer, more cost-efficient aircraft. A Delta One Suite onboard the 777 “With international travel expected to return slowly, we’ve also made the difficult decision to permanently retire our Boeing 777 fleet – 18 aircraft – by the end of the year,” CEO Ed Bastian said in a memo. The move is the beginning of a … Delta Air Lines said Thursday that it will no longer use Boeing Co.'s 777 aircraft as it attempts to reduce costs and preserve cash amid a plunge in traffic from the coronavirus pandemic. “We’re making strategic, cost-effective changes to our fleet to respond to the impact of the COVID-19 pandemic while also … Delta Air Lines will be retiring its entire fleet of 18 777's by the end of 2020. The older an aircraft gets, the more costly it becomes to operate. I am particularly interested in aeropolitics, cross-border investments, partnerships. Delta ordered the Boeing 737-900(ER) three times—100 planes in August 2011, further 20 in December 2015, and 10 more in April 2017. Boeing’s 777 Jet Is Out at Delta. 22 years after the first 777 carried the first passenger many Triple Sevens have reached the end of a useful service life. Influence in The World. Unlike Delta, American and United also acquired the more modern and efficient 777-300ER. Delta's refurbished 777 included new seats with doors in business class. Regarding today’s move, Bastian said that with international travel expected to return slowly, the decision was difficult “to permanently retire DL’s Boeing 777 fleet. If you want to book a flight on one of Delta Air Lines' Boeing 747s, the clock is ticking. Opinions expressed by Forbes Contributors are their own. That’s 18-20 years of service, which is high time for retirement for an aircraft. Delta’s 18 … Prior to the withdrawal of the MD and current Boeing 777 types, the airline had already reduced about half of its active aircraft due to the COVID-19 crisis. In a bid to accelerate the carrier’s strategy to simplify and modernize its fleet, the 18 777s will be retired by the end of the year. Delta expects to record impairment charges of $1.4 billion to $1.7 billion as a result of the aircraft retirements. Delta Air Lines Inc. plans to retire its 777 jumbo jets made by Boeing Co. and replace them with Airbus SE aircraft in another hit for the beleaguered U.S. plane maker. You may opt-out by. Delta is shrinking in response to COVID-19 tapering passenger demand and growing the airlineâs debt. Delta’s CEO Ed Bastian states today in an internal memo that the airline continues to take action to protect Delta’s cash, jobs, and future, … Based in Miami, Florida. Enraged And Isolated, Donald Trump Still Has Sole Control Of Americaâs Nukes, After President Stokes Anger, Right-Wing Extremists Occupy U.S. Capitol, Russiaâs Modernized Air Force Is Smaller But More CapableâHereâs What Itâs Procuring Next. The Atlanta-based carrier will remove its 18 777-200s by year-end on expectations of a long and slow recovery in international travel after the crisis, Delta CEO Ed Bastian told staff in a memo on Thursday. MIAMI - 2020 has been a year like no other for aviation. I have been covering airlines and aerospace in Asia-Pacific for 10 years. As a result, around 600 mainline and regional aircraft were parked. Earlier than it had been planned in its retirement schedule, DL announced on April 30 that it would withdraw MD-88 and MD-90 from its fleet in an effort to reduce its capacity systemwide. Only last year Delta finished a $100 million upgrade on the 777 to install new suites with doors in business class, introduce a premium economy cabin and place mood lighting through the plane, an interior meant to last for eight years or longer. I am originally from New York City, graduated from the University of Melbourne, and now live in Hong Kong. The remaining eight 777s are -200ERs that average 20 years old, but which Delta would have surely kept flying given their recent interior update. Eight of Delta’s 777 were delivered in 1999 - 2002. This is part of Delta’s strategy of simplifying and modernizing their fleet, while continuing to operate newer and more cost-efficient aircraft. Direct ownership gives it flexibility to determine retirement compared to leasing an aircraft and waiting for the contract to end or paying an early return fee. Delta is currently burning about US$50m every day, which makes the Boeing 777 retirement understandable, as it will help the airline “stem the bleeding, in its effort to safeguard Delta jobs and our future,” says the CEO. Delta plans to retire its entire fleet of Boeing 777 aircraft by the end of this year, CEO Ed Bastian said in a memo to employees. I have been covering airlines and aerospace in Asia-Pacific for 10 years. On March 13, Bastian announced a 40% reduction in overall capacity for the foreseeable future, the airlineâs largest at the time since the 9/11 attacks, in order to minimize costs for the carrier. Not only is t… The carrier has a 21-year flying legacy with the aircraft. The early retirement comes at a cost. The impairment charges will be in Deltaâs second quarter. The final commercial flight of a Boeing 747-400 operated by a US carrier hit the tarmac in Detroit today. As a response to the impact of the coronavirus pandemic, Delta Air Lines will be retiring its Boeing 777 aircraft from the fleet, leaving the Airbus A350 as its lone ultra-long-range aircraft. Since 2017 Delta has built-up a fleet of 13 A350s, which have around 21% lower seat costs than the older 777s. 77Es and 773s also face the axe, with pre-2000-build frames have a tough time to find a new operator. A bolder move was Delta's May decision to retire its Boeing 777 fleet by year-end. According to Bastian, the decision was made due to the drop in travel demand caused by the coronavirus (COVID-19) pandemic. Since then, all of the 18 Boeing 777-200 in DLâs fleet have been enhanced and fitted with the Suites as well as the new Delta Premium Select cabin. It is therefore understood from today’s memo that once international demand returns, taking over DL’s Boeing 777-200’s long-haul operation, including that from the new trans-American network agreement, are the carrier’s more fuel-efficient and cost-effective Airbus A330 and A330-900. The company says the retirement will accelerate the airline’s strategy to simplify and modernise its fleet, while continuing to operate newer, more cost-efficient aircraft. The CEO wrote, “The 777 played an important role with Delta since 1999, allowing us to open new long-haul markets and grow our international network as we transformed into a global airline. Almost two years ago, DL unveiled how its Boeing 777-200(ER/LR) fleet would look like with the new DeltaOne Suites that the Airbus A350-900 inaugurated the year. Instead the 777s will exit Deltaâs fleet by the end of this year. Almost a quarter of a century after it rolled out of the factory, the world's first Boeing 777 is being retired at the Pima Air & Space Museum in Arizona as a travel attraction. Delta Air Lines Boeing 747-400s sit in the desert awaiting their fate after being retired from the airline's fleet. Delta also owns all 27 MD-90s, but these average almost 23 years and are smaller aircraft, likely contributing much less to the impairment. 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Delta CEO Ed Bastian stated that as of late last year, Delta had set out to build the leading strategic alliance in Latin America together with LATAM, adding that âwhile the industry landscape has changed, our commitment to this joint venture is as strong as ever.â, As many in the industry are grappling with the impact of COVID-19, Bastian assured that the company, while protecting the safety of its customers and employees, is also âbuilding the airline alliance we know theyâll want to fly in the future.â. The coronavirus pandemic has claimed another victim in the fleets of U.S. airlines with Delta Air Lines saying that it will retire its Boeing 777s. For DL, retiring a fleet “as iconic” as the 777 was not an easy decision, as Bastian noted in the memo that he understood that the move had a direct impact on many DL staff who fly, crew and service the type. MIAMI – Delta Air Lines (DL) has made the decision to permanently retire by the end of 2020 its Boeing 777 fleet, comprised of 18 aircraft, due to the unprecedented drop in travel demand amid the COVID-19 pandemic and global economic shutdown. The Atlanta-based carrier said that the move is intended to make Delta “a smaller, more efficient airline over … The carrier is retiring its Boeing 777 fleet, a sign that it doesn’t expect international long-haul travel to return quickly. It also expects a future âimmaterialâ cash expenditure related to the impairment. The latest travel news, views and articles from a wide range of sources and places brought to you by Business Travel Executive. MIAMI – Delta Air Lines (DL) has made the decision to permanently retire by the end of 2020 its Boeing 777 fleet, comprised of 18 aircraft, due to the unprecedented drop in travel demand amid the COVID-19 pandemic and global economic shutdown. I am particularly interested in aeropolitics, cross-border investments, partnerships, transformations, new revenue growth and start-ups. Delta’s CEO Ed Bastian states today in an internal memo that the airline continues to take action to protect Delta’s cash, jobs, and future, mentioning that the carrier’s principal financial goal was to reduce its cash burn to zero by the end of the year. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit â And Pushing For Change, New Polar Strategy Must Focus On Chinaâs Long March To Antarctica, Delta Will Kick Off Airline Earnings But All Eyes Are On American, The Four Biggest Hurdles To Rebuilding The Nuclear Bomber Force, Boeing Addresses 737 MAX Issues But Program May Never Make Up For Damages, Bidenâs Challenge: Getting The Military Out Of Cozy But Vulnerable Super-Bases, Venezuela Is Worried About AmericaâThatâs A Big Problem For U.S. Why Is Amazon Buying Converted 767 Freighters Instead Of Leasing? Indeed, my former airline retired their 777s at roughly the same age. Delta expects to book a $1.4 billion-$1.7 billion non-cash impairment for the 18 777s and 27 MD-90s it will also retire. About half of Deltaâs 777 fleet is still relatively young, likely driving the impairment cost although Delta did not state a breakdown. That is only mid-life for a widebody aircraft. Most 77"A"-models have been retired, many either permanently withdrawn from use or already scrapped, with numbers growing quickly. According to the memo, parking the Boeing 777 fleet will provide significant cost savings over the next several years, in addition to closing the tap on DL’s cash hemorrhage. I’ve flown on that plane often and I love the customer experience it has delivered over the years.”. Having a newer variant can incentivize American and United to keep some of their older 777-200s since pilots and some parts can be pooled across the types. Delta says it will retire its 18 widebody Boeing 777s by the end of 2020 as a result of the COVID-19 pandemic. Delta retiring all Boeing 777s It has today been announcedthat Delta will retire all Boeing 777s by the end of 2020, as a result of the COVID-19 pandemic. When it comes to aircraft, the phrase “age ain’t nothing but a number” doesn’t really apply. Delta is shrinking in response to … On Thursday, Delta Air Lines announced that it would be retiring its Boeing 777s early as a result of the COVID-19 pandemic. Ten of the 18 777s are -200LR models that average 11 years old. Malaysia Airlines will tentatively be retiring their 777s as of March 2016.Via airlineroute.net, it looks like Malaysia’s last 777 flight is scheduled for March 26, 2016, between Kuala Lumpur and Guangzhou.That 777 flight will operate with the following schedule: MH376 Kuala Lumpur to Guangzhou departing 9:30AM arriving 1:35PM Delta inherited around 30 A330s from its merger with Northwest. Following the retirement of its 18 777s, Delta’s long-haul routes will be flown exclusively by the company’s A330s and A350-900s. Secondly, the older an aircraft becomes, the more maintenance it requires. ... A Delta Air Lines Boeing 777-200. A crowd gathered around the airport to watch the largest aircraft... © Copyright 2020 Airways International, Inc. All rights reserved. Delta plans to retire its 18 widebody Boeing 777s by the end of 2020 as a result of the COVID-19 pandemic. Deltaâs oldest widebody, the 767-300ER, averages almost 24 years â and Delta has 56 of them. Delta installed a premium economy cabin on the 777s. Bastian went on to say that Delta came into this crisis in a position of strength and that retiring the 777 is an important step to ensure the carrier remains in a relatively strong industry position as demand recovers. 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