Tuesday 17 November 2015

USA: Delta Adds The Embraer E190 To Its Fleet

Delta Air Lines is adding 20 new Embraer E190 aircraft to its fleet, doubling down on capacity in the 100-seat aircraft sector a decade after the segment was largely eliminated from the fleets of U.S. airlines.

The aircraft, formerly with Air Canada, are being bought second-hand from Boeing Capital, the finance arm of original equipment manufacturer (OEM) Boeing. The Chicago-based airframer also won an order for an additional 40 Boeing 737-900ER aircraft, bringing Delta’s total order book for the largest Boeing 737 Next Generation (737 NG) variant to 140 aircraft, of which 40 frames have been delivered.

The orders are contingent on the confirmation of a new contract by Delta’s pilots, approved earlier this week by the Delta Master Executive Council (MEC) of the Air Line Pilot Association (ALPA). Highlights of the contract include increased pay, reduced profit sharing, newly created pay scales for the E190 and Airbus A350 (among others), and a commitment to add a new 100-seat aircraft to the fleet.

The 20 Embraer E190s are former Air Canada aircraft, which Boeing Capital agreed to purchase in December 2013 in return for an Air Canada order for 61 Boeing 737 MAX aircraft. The flip of used aircraft to Delta mirrors Delta’s deal to lease in 88 ex-Southwest Airlines (and AirTran) Boeing 717s, which were returned to Boeing by Southwest after the Dallas-based low-cost carrier couldn’t make the aircraft work at its higher cost base.

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