Announcement

Collapse
No announcement yet.

Delta firms C series order

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Delta firms C series order

    Great news for Bombardier and the C series program


    Bombardier is a global leader in the business aviation industry. Its shares are traded on the Toronto Stock Exchange under the symbol BBD.

  • #2
    This probably spells the end for the Boeing 717 and possibly also the MD-88 in Delta's fleet.

    Comment


    • #3
      Originally posted by Peter Kesternich View Post
      This probably spells the end for the Boeing 717 and possibly also the MD-88 in Delta's fleet.
      The MD-80s are going to be kept so long as financial indicators keep them profitbaly flying in the fleet. At present, apart from the cost of operations - most of those assets are fully amortized. I expect that as heavy MX checks pop-up, the C.B.A. will make them less worthy of keeping flying.

      The 717s though, will be with DL for quite some time. Keep in mind, that the 717 and the CS-100 compliment each other almost perfectly. The 717s engines, wings and capabilities are tailored to short hops (as is happily employed by HA, or QF) - and DL is simply advantaging on the 'plug and play' model that they essentially brought over from FL when offered by WN. The 717 made a business work on the other side of the ramp, eating away a market from DL when FL was around - specifically flying short hops out of ATL (which is perfect for destinations within the East Coast Corridor). DL now has the range to deploy that asset to wherever they need it, and have been doing so quite keenly. The CS-100 though, is optomized for longer routes and despite both falling into similar capacities, they will supplement each DL on distinctly different, that might require the similar passenger capacity. A cool note though, is that, in tandem DL will offer one of the best passenger comfort experiences in the class.

      Keep in mind also, that the CS-100 is not set to debut for some time. This does mean that as the price of oil rises, DL can be rather selective about retiring fuel expensive assets, and picking up the new ones - and only then assuming the cost of payments/leases. It's a smart business plan on their part.

      What should be though of though is - this is not an order of the CS-300. Does DL believe that it does not that aircraft as well? Would a CS-300 order more readily provide the basis Bombardier needs to launch the CS-500?
      Whatever is necessary, is never unwise.

      Comment


      • #4
        ...and then DL decides to add 37 A321CEOS!

        "The order for the A321s is an opportunistic fleet move that enables us to produce strong returns and cost-effectively accelerate the retirement of Delta’s 116 MD-88s in a capital-efficient manner," Delta's incoming CEO, Ed Bastian, said in a statement.

        http://www.businessinsider.com/delta...billion-2016-4
        So for DL:

        - A New CEO.
        - 37 A321-CEOs. (DL has yet to even operate a single A321, and they are already in love...)
        - 75 CS100s. (...and in a few years will then have the 737MAX, A32XNEO, and CS300/500s to chose from - one more competitor, much better pricing).

        Well Done DL!
        Whatever is necessary, is never unwise.

        Comment

        Working...
        X