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N328KF
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WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Tue Dec 06, 2005 11:30 pm

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.' -Theodore Roosevelt
 
akelley728
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Tue Dec 06, 2005 11:43 pm

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.
 
DeltaGuy
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 12:16 am

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
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
DAYflyer
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 12:39 am

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.
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luisca
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 12:47 am

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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leelaw
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 12:55 am

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?
Lex Ancilla Justitiae
 
Alitalia744
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 1:10 am

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.
 
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litz
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 5:40 am

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
 
quickmover
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 6:05 am

Is $60 mil a copy really that much of a bargain?
 
SESGDL
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 6:22 am

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
 
airlineaddict
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 8:04 am

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?
 
leelaw
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 12:18 pm

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)?
Lex Ancilla Justitiae
 
md90fan
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RE: WSJ: CIT To Acquire 10 Undelivered Delta 737-800s

Wed Dec 07, 2005 2:29 pm

Chang-An/Hainan got a DL 738 too  Smile


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