Delta CEO Ed Bastian announced on Thursday that the airline will permanently retire its Boeing 777 fleet by the end of the year. © 2021 Forbes Media LLC. 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 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. Delta plans to retire its 18 widebody Boeing 777s by the end of 2020 as a result of the COVID-19 pandemic. That’s 18-20 years of service, which is high time for retirement for an aircraft. 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. 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. 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. The older an aircraft gets, the more costly it becomes to operate. When it comes to aircraft, the phrase “age ain’t nothing but a number” doesn’t really apply. Delta Air Lines Boeing 747-400s sit in the desert awaiting their fate after being retired from the airline's fleet. 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. 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. 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. 22 years after the first 777 carried the first passenger many Triple Sevens have reached the end of a useful service life. Delta's refurbished 777 included new seats with doors in business class. 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. Why Is Amazon Buying Converted 767 Freighters Instead Of Leasing? ... A Delta Air Lines Boeing 777-200. Delta to retire Boeing 777 from fleet Air Traveller PH Staff May 15, 2020. Here’s Why That’s No Reason to Sell the Stock. Influence in The World. The move is the beginning of a … A Global Review of Commercial Flight since 1994: the leading Commercial Aviation publication in North America and 35 nations worldwide. As a result, around 600 mainline and regional aircraft were parked. 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.”. 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. I have been covering airlines and aerospace in Asia-Pacific for 10 years. The retirement will accelerate the airline’s strategy to simplify and modernize its fleet, while continuing to operate newer, more cost-efficient aircraft. The agreement, pending regulatory approval, will offer a seamless travel experience and extensive connectivity throughout the region. The impairment cost is high since Delta owns all 18 777s. 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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. The impairment charges will be in Delta’s second quarter. Firstly, as technology develops, newer aircraft of similar size and range achieve higher rates of fuel efficiency. 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. 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. 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. I am particularly interested in aeropolitics, cross-border investments, partnerships, transformations, new revenue growth and start-ups. 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. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, New Polar Strategy Must Focus On China’s Long March To Antarctica, Delta Will Kick Off Airline Earnings But All Eyes Are On American, The Four Biggest Hurdles To Rebuilding The Nuclear Bomber Force, Boeing Addresses 737 MAX Issues But Program May Never Make Up For Damages, Biden’s Challenge: Getting The Military Out Of Cozy But Vulnerable Super-Bases, Venezuela Is Worried About America—That’s A Big Problem For U.S. 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. 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. According to Investopedia, fuel accounts for 10-12% of operating expenses. MIAMI - 2020 has been a year like no other for aviation. Delta inherited around 30 A330s from its merger with Northwest. Boeing’s 777 Jet Is Out at Delta. 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 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. Yet, on a more recent and hopeful note for the company, just last week, DL and the LATAM Airlines Group and its affiliates signed a trans-American Joint Venture Agreement that will marry the airlines’ complementary route networks throughout the Americas. Delta Air Lines will be retiring its entire fleet of 18 777's by the end of 2020. The latest travel news, views and articles from a wide range of sources and places brought to you by Business Travel Executive. Direct ownership gives it flexibility to determine retirement compared to leasing an aircraft and waiting for the contract to end or paying an early return fee. This is part of Delta’s strategy of simplifying and modernizing their fleet, while continuing to operate newer and more cost-efficient aircraft. 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. The final commercial flight of a Boeing 747-400 operated by a US carrier hit the tarmac in Detroit today. 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. Based in Miami, Florida. The remaining eight 777s are -200ERs that average 20 years old, but which Delta would have surely kept flying given their recent interior update. 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. The early retirement comes at a cost. Delta also owns all 27 MD-90s, but these average almost 23 years and are smaller aircraft, likely contributing much less to the impairment. The Atlanta-based carrier said that the move is intended to make Delta “a smaller, more efficient airline over … Following the retirement of its 18 777s, Delta’s long-haul routes will be flown exclusively by the company’s A330s and A350-900s. According to Bastian, the decision was made due to the drop in travel demand caused by the coronavirus (COVID-19) pandemic. 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. 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. 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. The carrier is retiring its Boeing 777 fleet, a sign that it doesn’t expect international long-haul travel to return quickly. 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. I’ve flown on that plane often and I love the customer experience it has delivered over the years.”. We’ve already accelerated the retirement plan for the MD-88 and MD-90 and parked more than 650 jet total.”. 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 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. That is only mid-life for a widebody aircraft. Delta’s 18 … Ten of the 18 777s are -200LR models that average 11 years old. Delta says it will retire its 18 widebody Boeing 777s by the end of 2020 as a result of the COVID-19 pandemic. 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. Since 2017 Delta has built-up a fleet of 13 A350s, which have around 21% lower seat costs than the older 777s. “We’re making strategic, cost-effective changes to our fleet to respond to the impact of the COVID-19 pandemic while also … Do you think that the aviation industry will recover by 2024? 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. 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. MINNEAPOLIS (FOX 9) - Delta Air Lines is permanently retiring its Boeing 777 fleet by the end of the year, the company announced Thursday. Unlike Delta, American and United also acquired the more modern and efficient 777-300ER. Delta has more A350s on order and last year agreed to take 14 A350s from partner LATAM. Delta is shrinking in response to COVID-19 tapering passenger demand and growing the airline’s debt. The latest travel news, views and articles from a wide range of sources and places brought to you by Business Travel Executive. The carrier has a 21-year flying legacy with the aircraft. 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 If you want to book a flight on one of Delta Air Lines' Boeing 747s, the clock is ticking. About half of Delta’s 777 fleet is still relatively young, likely driving the impairment cost although Delta did not state a breakdown. I have been covering airlines and aerospace in Asia-Pacific for 10 years. 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. Not only is t… Delta’s oldest widebody, the 767-300ER, averages almost 24 years – and Delta has 56 of them. You may opt-out by. All Rights Reserved, This is a BETA experience. Delta expects to record impairment charges of $1.4 billion to $1.7 billion as a result of the aircraft retirements. Instead the 777s will exit Delta’s fleet by the end of this year. 77Es and 773s also face the axe, with pre-2000-build frames have a tough time to find a new operator. A bolder move was Delta's May decision to retire its Boeing 777 fleet by year-end. A crowd gathered around the airport to watch the largest aircraft... © Copyright 2020 Airways International, Inc. All rights reserved. Delta said the 777 fleet included 18 aircraft. Opinions expressed by Forbes Contributors are their own. Delta is shrinking in response to … 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. 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, … The MD-90s will exit by the end of June, alongside Delta’s MD-88s. Delta installed a premium economy cabin on the 777s. Delta’s Boeing 777s were not supposed to be retired so early. On Thursday, Delta Air Lines announced that it would be retiring its Boeing 777s early as a result of the COVID-19 pandemic. The coronavirus pandemic has claimed another victim in the fleets of U.S. airlines with Delta Air Lines saying that it will retire its Boeing 777s. 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. Indeed, my former airline retired their 777s at roughly the same age. 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 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. Most 77"A"-models have been retired, many either permanently withdrawn from use or already scrapped, with numbers growing quickly. 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. I am particularly interested in aeropolitics, cross-border investments, partnerships. 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. Eight of Delta’s 777 were delivered in 1999 - 2002. It also expects a future “immaterial” cash expenditure related to the impairment. Secondly, the older an aircraft becomes, the more maintenance it requires. I am originally from New York City, graduated from the University of Melbourne, and now live in Hong Kong. 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. 747-400 operated by a US carrier hit the tarmac in Detroit today the latest travel news views... 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