Delta has finally started flying the Boeing 717.
(Photo Delta Air Lines.)
Second, Delta has been
anxious to reduce its reliance on 50-seat regional jets, which are very
costly to operate in terms of fuel and maintenance. Its wholly owned
regional subsidiary, Endeavor Air, had 140 50-seat jets earlier this
year, but plans to retire all of them by the end of 2014. Some of these
will be replaced by larger 76-seat regional jets, but much of the flying
will be picked up by the 717s that are arriving from Southwest.
Another wave of small regional jets operated by Delta's partners are likely to be retired in 2014 and 2015 as well. The Boeing 717 is much cheaper to operate on a per-seat basis, and Delta is betting that travelers will appreciate amenities such as large overhead bins, first-class cabins, and higher ceilings.
This should more than make up for the reduction in flight options that results from using larger planes.
Ready for takeoff?
Delta wisely jumped on the opportunity to acquire AirTran's fleet of Boeing 717s. While Southwest did not want to integrate the 717s into its own fleet of 737s, Delta is well equipped to handle the complexity of operating many different aircraft types. Delta is leasing the 717s at a very good price, and they will be much cheaper to operate than the aircraft they are replacing.
This fleet could be a competitive advantage for Delta for years to come. Any other carrier that wanted to replicate Delta's strategy of replacing 50-seat jets with small narrowbodies would have to invest billions of dollars to acquire planes in that size range from Embraer or Bombardier. The 717s should therefore increase Delta's margin advantage vis-a-vis rivals, leading to market-beating gains for investors.
Another wave of small regional jets operated by Delta's partners are likely to be retired in 2014 and 2015 as well. The Boeing 717 is much cheaper to operate on a per-seat basis, and Delta is betting that travelers will appreciate amenities such as large overhead bins, first-class cabins, and higher ceilings.
This should more than make up for the reduction in flight options that results from using larger planes.
Ready for takeoff?
Delta wisely jumped on the opportunity to acquire AirTran's fleet of Boeing 717s. While Southwest did not want to integrate the 717s into its own fleet of 737s, Delta is well equipped to handle the complexity of operating many different aircraft types. Delta is leasing the 717s at a very good price, and they will be much cheaper to operate than the aircraft they are replacing.
This fleet could be a competitive advantage for Delta for years to come. Any other carrier that wanted to replicate Delta's strategy of replacing 50-seat jets with small narrowbodies would have to invest billions of dollars to acquire planes in that size range from Embraer or Bombardier. The 717s should therefore increase Delta's margin advantage vis-a-vis rivals, leading to market-beating gains for investors.
0 komentar:
Posting Komentar