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WSJ: CIT To Acquire 10 Undelivered Delta 737-800s  
User currently offlineN328KF From United States of America, joined May 2004, 6482 posts, RR: 3
Posted (8 years 4 months 2 weeks 3 days 7 hours ago) and read 3641 times:

Brief fair use excerpt:

NEW YORK -- CIT Group Inc. (CIT) plans to buy 10 Boeing Co. (BA) 737-800 planes from Delta Air Lines Inc. (DALRQ), which is shedding costs as part of its court-supervised bankruptcy reorganization.

[...]

In a press release Tuesday, CIT, a finance company, said its CIT Aerospace unit will buy the planes when they are delivered to Delta from Boeing.


I know they're in a cash crunch, but it seems like a bad idea to ditch aircraft that cost less to operate.


When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
12 replies: All unread, jump to last
 
User currently offlineAKelley728 From United States of America, joined Dec 1999, 2162 posts, RR: 5
Reply 1, posted (8 years 4 months 2 weeks 3 days 7 hours ago) and read 3590 times:

Quoting N328KF (Thread starter):
I know they're in a cash crunch, but it seems like a bad idea to ditch aircraft that cost less to operate

Delta is shedding capacity. It makes even less sense to operate aircraft if you don't have passengers to use them with!

Plus 738s are in high demand. I'm sure Delta will get a good price for them.


User currently offlineDeltaGuy From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 4 months 2 weeks 3 days 6 hours ago) and read 3482 times:

I believe they've sold some options on 738's before. If anything, they don't have the loads or justification to use the additional aircraft...if they did, they could have kept the 732's  Sad

DeltaGuy


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 3, posted (8 years 4 months 2 weeks 3 days 6 hours ago) and read 3414 times:

Seems to me that DL is shedding quite a bit of aircraft over time. I guess it is better for them to reduce capacity, and have fewer flights with better loads and prices.


One Nation Under God
User currently offlineLuisca From , joined Dec 1969, posts, RR:
Reply 4, posted (8 years 4 months 2 weeks 3 days 6 hours ago) and read 3384 times:

Quoting DeltaGuy (Reply 2):
believe they've sold some options on 738's before

they did sell CM a few delivery slots for 738's, CM paid DL quite a premium for this from what I understand


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User currently offlineLeelaw From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 4 months 2 weeks 3 days 6 hours ago) and read 3348 times:

Quoting N328KF (Thread starter):
CIT, a finance company, said its CIT Aerospace unit will buy the planes when they are delivered to Delta from Boeing.

Perhaps Delta is leasing back the 738s from CIT?


User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4731 posts, RR: 45
Reply 6, posted (8 years 4 months 2 weeks 3 days 6 hours ago) and read 3290 times:

guys, these are planes that Delta is under obligation from Boeing to pay for and accept. They are not planes currently in the Delta fleet if you read the press release...


Some see lines, others see between the lines.
User currently offlineLitz From United States of America, joined Dec 2003, 1753 posts, RR: 0
Reply 7, posted (8 years 4 months 2 weeks 3 days 1 hour ago) and read 3103 times:
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Quoting Leelaw (Reply 5):
Perhaps Delta is leasing back the 738s from CIT?

After getting utterly burned on leases of late (one of the many reasons they are IN bankruptcy, after all, was exorbitantly high lease rates signed during the boom years in the late 90s) I doubt you'll see them lease anything in the future unless it's a spectacularly good deal ...

- litz


User currently offlineQuickmover From United States of America, joined Mar 2004, 2486 posts, RR: 0
Reply 8, posted (8 years 4 months 2 weeks 3 days 1 hour ago) and read 3058 times:

Is $60 mil a copy really that much of a bargain?

User currently offlineSESGDL From United States of America, joined Jan 2001, 3452 posts, RR: 10
Reply 9, posted (8 years 4 months 2 weeks 3 days ago) and read 3028 times:

Is DL still planning to take delivery of 737-800s next year or are they all being sold to other carriers? I know they had 36 planned for 2006-2007, that would now be 26 as I understand. Are they still taking these?

Jeremy


User currently offlineAirlineAddict From United States of America, joined Jan 2005, 419 posts, RR: 1
Reply 10, posted (8 years 4 months 2 weeks 2 days 23 hours ago) and read 2918 times:
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Quoting Quickmover (Reply 8):
Is $60 mil a copy really that much of a bargain?

I was wondering that myself. That seems awfully expensive although engines are probably included.

Any thoughts on who may lease the 10 aircraft from CIT? CO perhaps?


User currently offlineLeelaw From , joined Dec 1969, posts, RR:
Reply 11, posted (8 years 4 months 2 weeks 2 days 18 hours ago) and read 2788 times:

Quoting Litz (Reply 7):
Quoting Leelaw (Reply 5):
Perhaps Delta is leasing back the 738s from CIT?

After getting utterly burned on leases of late (one of the many reasons they are IN bankruptcy, after all, was exorbitantly high lease rates signed during the boom years in the late 90s) I doubt you'll see them lease anything in the future unless it's a spectacularly good deal ...

The reason I suggested a possible sale/leaseback transaction between DL & CIT is that the article indicates DL is actually taking delivery of the aircraft and doesn't mention CIT placing the aircraft with other operators. I'm not sure why the seemingly unnecessary formality of delivery to Delta is required if CIT plans to place the aircraft with another operator(s)?


User currently offlineMD90fan From Bahamas, joined Jul 2005, 2931 posts, RR: 7
Reply 12, posted (8 years 4 months 2 weeks 2 days 16 hours ago) and read 2687 times:

Chang-An/Hainan got a DL 738 too  Smile


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