Following the ratification of a tentative agreement from more than 12,000 Delta pilots, premium U.S. carrier Delta Air Lines Inc, has awarded The Boeing Company a $4 billion contract involving 60 single-aisle Boeing and Embraer aircraft.
Delta airlines, which intends to acquire an additional 40 Boeing 737-900ER planes has scheduled the E190 jets to arrive in the fourth quarter of 2016, as Delta plans to use these planes to replace narrow bodied aircraft that are scheduled to retire by 2019. The 737-900ER offers all the benefits of the Next-Generation 737 family along with greater seating capacity.
Notably, Delta has adopted a three-pronged approach to improve margins. Under the strategy, the company has decided to gradually dispose ageing carriers by 2017 which is expected to result in incremental operating profits. Hence, the purchase of 60 planes is well in line with this agenda.
coined from youtube, as posted by Delta Airlines
Meanwhile, reduced fuel cost has however boosted Delta’s earnings over the last few quarters and has also helped the carrier generate huge profits. Delta also aims to save over $2 billion in 2015. Such high savings have allowed the company to reward its employees and investors handsomely.
In 2014, the carrier had distributed more than $1 billion among its employees under its profit-sharing plan. Also, recently, the carrier declared a $5 billion buyback program along with a 50% hike in dividend.
Apart from boosting shareholders’ wealth and raising salaries, Delta utilizes its savings to buy aircraft and upgrade airport terminals as part of its efforts to promote smooth flight.
meanwhile, Delta had struck a $14 billion deal with Airbus Group, involving the purchase of Airbus A350-900 and A330-900neo at the end of last year.The first lot comprising 25 Airbus A350-900 planes is scheduled to arrive at the start of the second quarter of 2017 while the rest are to be delivered in 2019.
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