why did delta retire the 777

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. 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. 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. Delta is shrinking in response to COVID-19 tapering passenger demand and growing the airlineâs debt. Delta expects to record impairment charges of $1.4 billion to $1.7 billion as a result of the aircraft retirements. 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. It also expects a future âimmaterialâ cash expenditure related to the impairment. Unlike Delta, American and United also acquired the more modern and efficient 777-300ER. MIAMI - 2020 has been a year like no other for aviation. About half of Deltaâs 777 fleet is still relatively young, likely driving the impairment cost although Delta did not state a breakdown. All Rights Reserved, This is a BETA experience. Boeing’s 777 Jet Is Out at Delta. Delta also owns all 27 MD-90s, but these average almost 23 years and are smaller aircraft, likely contributing much less to the impairment. When it comes to aircraft, the phrase “age ain’t nothing but a number” doesn’t really apply. Since 2017 Delta has built-up a fleet of 13 A350s, which have around 21% lower seat costs than the older 777s. The Atlanta-based carrier said that the move is intended to make Delta “a smaller, more efficient airline over … Delta installed a premium economy cabin on the 777s. I am particularly interested in aeropolitics, cross-border investments, partnerships, transformations, new revenue growth and start-ups. Here’s Why That’s No Reason to Sell the Stock. 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. The retirement will accelerate the airline’s strategy to simplify and modernize its fleet, while continuing to operate newer, more cost-efficient aircraft. 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. 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. 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 carrier has a 21-year flying legacy with the aircraft. MIAMI — Delta Air Lines took delivery of its very last factory-fresh Boeing aircraft—the 130th 737-900(ER) to join its fleet.From now on, what used to be one of Boeing’s largest customers, has only scheduled for delivery brand-new Airbus planes. Delta Air Lines Boeing 747-400s sit in the desert awaiting their fate after being retired from the airline's fleet. Delta to retire Boeing 777 from fleet Air Traveller PH Staff May 15, 2020. Most 77"A"-models have been retired, many either permanently withdrawn from use or already scrapped, with numbers growing quickly. Delta says it will retire its 18 widebody Boeing 777s by the end of 2020 as a result of the COVID-19 pandemic. Eight of Delta’s 777 were delivered in 1999 - 2002. The latest travel news, views and articles from a wide range of sources and places brought to you by Business Travel Executive. 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. Influence in The World. 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. I am originally from New York City, graduated from the University of Melbourne, and now live in Hong Kong. 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. Why Is Amazon Buying Converted 767 Freighters Instead Of Leasing? 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. “We’re making strategic, cost-effective changes to our fleet to respond to the impact of the COVID-19 pandemic while also … 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. Deltaâs oldest widebody, the 767-300ER, averages almost 24 years â and Delta has 56 of them. 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. Delta is shrinking in response to … I am particularly interested in aeropolitics, cross-border investments, partnerships. 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. A Global Review of Commercial Flight since 1994: the leading Commercial Aviation publication in North America and 35 nations worldwide. The older an aircraft gets, the more costly it becomes to operate. I have been covering airlines and aerospace in Asia-Pacific for 10 years. Delta CEO Ed Bastian announced on Thursday that the airline will permanently retire its Boeing 777 fleet by the end of the year. Following the retirement of its 18 777s, Delta’s long-haul routes will be flown exclusively by the company’s A330s and A350-900s. On Thursday, Delta Air Lines announced that it would be retiring its Boeing 777s early as a result of the COVID-19 pandemic. Firstly, as technology develops, newer aircraft of similar size and range achieve higher rates of fuel efficiency. 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. The carrier is retiring its Boeing 777 fleet, a sign that it doesn’t expect international long-haul travel to return quickly. 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. 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. The final commercial flight of a Boeing 747-400 operated by a US carrier hit the tarmac in Detroit today. 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, … 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. 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 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. The impairment charges will be in Deltaâs second quarter. Delta’s 18 … According to Investopedia, fuel accounts for 10-12% of operating expenses. Range of sources and places brought to you by Business travel Executive about of! 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