Monday, January 15, 2007
Delta Acquires More CRJs
Slowly, Delta (DALRQ) is revealing the impact of the request for proposal for regional jet service issued last fall. Its latest move has it acquiring 30 new 76-seat regional jets from Bombardier (BBD) with options on 30 more, according to bankruptcy filings last week. The aircraft are 76-seat regional jets that will permit Delta to expand into new markets that it cannot now profitably serve and to upgrade, where appropriate, markets being served with smaller aircraft that can support 76-seat aircraft.
Delta would only say that they will be used at is hubs at Atlanta (ATL), Cincinnati (CVG), New York/Kennedy (JFK) and Salt Lake (SLC). The jets, with a two-class configuration, are scheduled for delivery in September and continuing through February 2010. Delta also said that a deal reconfirming the contract it cut with Republic Airways (RJET) will take about two more weeks to complete. (RAN, January 8, p.1)
The order requires secured financing and must have court approval to proceed. The CRJ 900s result from an agreement last April with pilots for work rule changes affording the use of 30 additional 76-seat jets. Operations of the aircraft are included in the requests for proposals issued last summer which include over 140 regional jets - 50 50-seat aircraft to replace current flying at ATL, JFK and CVG, and 50 76 seaters as well as over 40 70 seaters. The order also comes after Delta reassigned flying out of Cincinnati from Comair to SkyWest. (RAN. December 4, p.1). CVG has the dubious distinction of being the most expensive airport in terms of ticket prices -- good for Delta but it is drawing ire from both passengers and local aviation officials who noted any time they get a low-cost carrier, Delta lowers fares to the point where any competition pulls out.
The primary objective of RFPs, Delta said in its filing, is to optimize the cost structures of the existing, non-affirmed Delta Connection contracts and secure large jet and turboprop flying at market-leading rates. In addition, Delta is striving to optimize the Delta Connection fleet by creating future flexibility for retiring small regional jets.

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