The industry has gone through mass furloughs, layoffs, aircraft storage and retirement,... PRESTWICK — The Antonov AN225 Mriya has touched down in Glasgow Prestwick Airport (PIK) today. Do you think that the aviation industry will recover by 2024? 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 is accelerating the retirement of its Boeing 777 fleet, as the airline continues to make cost-saving measures amid the coronavirus pandemic. I have been covering airlines and aerospace in Asia-Pacific for 10 years. The impairment charges will be in Delta’s second quarter. © 2021 Forbes Media LLC. For DL, retiring a fleet “as iconic” as the 777 was not an easy decision, as Bastian noted in the memo that he understood that the move had a direct impact on many DL staff who fly, crew and service the type. Following the retirement of its 18 777s, Delta’s long-haul routes will be flown exclusively by the company’s A330s and A350-900s. I’ve flown on that plane often and I love the customer experience it has delivered over the years.”. Not only is t… 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 MD-90s will exit by the end of June, alongside Delta’s MD-88s. Unlike Delta, American and United also acquired the more modern and efficient 777-300ER. I have been covering airlines and aerospace in Asia-Pacific for 10 years. All Rights Reserved, This is a BETA experience. Prior to the withdrawal of the MD and current Boeing 777 types, the airline had already reduced about half of its active aircraft due to the COVID-19 crisis. “We’re making strategic, cost-effective changes to our fleet to respond to the impact of the COVID-19 pandemic while also … 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. Delta CEO Ed Bastian announced on Thursday that the airline will permanently retire its Boeing 777 fleet by the end of the year. Delta Air Lines Boeing 747-400s sit in the desert awaiting their fate after being retired from the airline's fleet. The 777 has not been a core part of Delta’s fleet the way it is at American Airlines and United Airlines, which have over 60 777s each. The CEO said, “An important tool to help us achieve these goals is retiring older aircraft and modernizing our fleet as we plan for the future. Delta has more A350s on order and last year agreed to take 14 A350s from partner LATAM. Delta's refurbished 777 included new seats with doors in business class. ... A Delta Air Lines Boeing 777-200. We’ve already accelerated the retirement plan for the MD-88 and MD-90 and parked more than 650 jet total.”. The retirement will accelerate the airline’s strategy to simplify and modernize its fleet, while continuing to operate newer, more cost-efficient aircraft. Delta expects to record impairment charges of $1.4 billion to $1.7 billion as a result of the aircraft retirements. Delta said the 777 fleet included 18 aircraft. The Atlanta-based carrier will remove its 18 777-200s by year-end on expectations of a long and slow recovery in international travel after the crisis, Delta CEO Ed Bastian told staff in a memo on Thursday. 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. 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. Eight of Delta’s 777 were delivered in 1999 - 2002. Delta installed a premium economy cabin on the 777s. The latest travel news, views and articles from a wide range of sources and places brought to you by Business Travel Executive. 77Es and 773s also face the axe, with pre-2000-build frames have a tough time to find a new operator. You may opt-out by. I am originally from New York City, graduated from the University of Melbourne, and now live in Hong Kong. When it comes to aircraft, the phrase “age ain’t nothing but a number” doesn’t really apply. 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. This is part of Delta’s strategy of simplifying and modernizing their fleet, while continuing to operate newer and more cost-efficient aircraft. 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 agreement, pending regulatory approval, will offer a seamless travel experience and extensive connectivity throughout the region. Delta Air Lines said Thursday that it will no longer use Boeing Co.'s 777 aircraft as it attempts to reduce costs and preserve cash amid a plunge in traffic from the coronavirus pandemic. Delta is shrinking in response to COVID-19 tapering passenger demand and growing the airline’s debt. The carrier is retiring its Boeing 777 fleet, a sign that it doesn’t expect international long-haul travel to return quickly. According to the memo, parking the Boeing 777 fleet will provide significant cost savings over the next several years, in addition to closing the tap on DL’s cash hemorrhage. If you want to book a flight on one of Delta Air Lines' Boeing 747s, the clock is ticking. 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. The carrier has a 21-year flying legacy with the aircraft. Ten of the 18 777s are -200LR models that average 11 years old. 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. Delta inherited around 30 A330s from its merger with Northwest. Most 77"A"-models have been retired, many either permanently withdrawn from use or already scrapped, with numbers growing quickly. 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. 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. 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. 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. That’s 18-20 years of service, which is high time for retirement for an aircraft. A Global Review of Commercial Flight since 1994: the leading Commercial Aviation publication in North America and 35 nations worldwide. 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’s oldest widebody, the 767-300ER, averages almost 24 years – and Delta has 56 of them. Since then, all of the 18 Boeing 777-200 in DL’s fleet have been enhanced and fitted with the Suites as well as the new Delta Premium Select cabin. The older an aircraft gets, the more costly it becomes to operate. The early retirement comes at a cost. 22 years after the first 777 carried the first passenger many Triple Sevens have reached the end of a useful service life. The Atlanta-based carrier said that the move is intended to make Delta “a smaller, more efficient airline over … The impairment cost is high since Delta owns all 18 777s. Delta’s 18 … 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 “while the industry landscape has changed, our commitment to this joint venture is as strong as ever.”, 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 “building the airline alliance we know they’ll want to fly in the future.”. 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. Based in Miami, Florida. 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. 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Instead the 777s will exit Delta’s fleet by the end of this year. The move is the beginning of a … Firstly, as technology develops, newer aircraft of similar size and range achieve higher rates of fuel efficiency. Boeing’s 777 Jet Is Out at Delta. Delta plans to retire its entire fleet of Boeing 777 aircraft by the end of this year, CEO Ed Bastian said in a memo to employees. On March 13, Bastian announced a 40% reduction in overall capacity for the foreseeable future, the airline’s largest at the time since the 9/11 attacks, in order to minimize costs for the carrier. MIAMI - 2020 has been a year like no other for aviation. Delta also owns all 27 MD-90s, but these average almost 23 years and are smaller aircraft, likely contributing much less to the impairment. On Thursday, Delta Air Lines announced that it would be retiring its Boeing 777s early as a result of the COVID-19 pandemic. 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. According to Bastian, the decision was made due to the drop in travel demand caused by the coronavirus (COVID-19) pandemic. 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, … Enraged And Isolated, Donald Trump Still Has Sole Control Of America’s Nukes, After President Stokes Anger, Right-Wing Extremists Occupy U.S. Capitol, Russia’s Modernized Air Force Is Smaller But More Capable—Here’s What It’s Procuring Next. 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. Influence in The World. Malaysia Airlines will tentatively be retiring their 777s as of March 2016.Via airlineroute.net, it looks like Malaysia’s last 777 flight is scheduled for March 26, 2016, between Kuala Lumpur and Guangzhou.That 777 flight will operate with the following schedule: MH376 Kuala Lumpur to Guangzhou departing 9:30AM arriving 1:35PM Secondly, the older an aircraft becomes, the more maintenance it requires. Marana, Arizona is where aircraft go to retire but some airlines are sending their jets there to ride out the COVID-19 crisis affecting the industry. Here’s Why That’s No Reason to Sell the Stock. Indeed, my former airline retired their 777s at roughly the same age. I am particularly interested in aeropolitics, cross-border investments, partnerships. 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. Delta is shrinking in response to … A crowd gathered around the airport to watch the largest aircraft... © Copyright 2020 Airways International, Inc. All rights reserved. About half of Delta’s 777 fleet is still relatively young, likely driving the impairment cost although Delta did not state a breakdown. Since 2017 Delta has built-up a fleet of 13 A350s, which have around 21% lower seat costs than the older 777s. Opinions expressed by Forbes Contributors are their own. The company says the retirement will accelerate the airline’s strategy to simplify and modernise its fleet, while continuing to operate newer, more cost-efficient aircraft. Delta says it will retire its 18 widebody Boeing 777s by the end of 2020 as a result of the COVID-19 pandemic. 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Regarding today’s move, Bastian said that with international travel expected to return slowly, the decision was difficult “to permanently retire DL’s Boeing 777 fleet. Having a newer variant can incentivize American and United to keep some of their older 777-200s since pilots and some parts can be pooled across the types. MIAMI – Delta Air Lines (DL) has made the decision to permanently retire by the end of 2020 its Boeing 777 fleet, comprised of 18 aircraft, due to the unprecedented drop in travel demand amid the COVID-19 pandemic and global economic shutdown. Delta’s Boeing 777s were not supposed to be retired so early. I am particularly interested in aeropolitics, cross-border investments, partnerships, transformations, new revenue growth and start-ups. Delta ordered the Boeing 737-900(ER) three times—100 planes in August 2011, further 20 in December 2015, and 10 more in April 2017. That is only mid-life for a widebody aircraft. 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