Delta Air Lines Receives Court Approval of Renegotiated Aircraft Leases

NEW YORK_A federal bankruptcy judge Wednesday approved Delta Air Lines Inc.'s lease renegotiations for 88 jets, a move that will save it about $200 million (€168 million) a year.

With U.S Bankruptcy Judge Adlai Hardin's approval, Delta has now successfully renegotiated or restructured contracts for 90 percent of its main fleet and a third of its regional aircraft, according to Edward Bastian, Delta's chief financial officer.

The renegotiation was initially opposed by a committee representing unsecured creditors, who had argued the leaseholders - by working as a group in their negotiations with Delta - may have been in violation of anti-trust regulations.

The committee dropped their objection to how the leases were renegotiated and said Monday it would not sue the lease holders.

Delta, like other carriers, leases many of the planes in its fleet of 682 aircraft. The planes are owned by special financial institutions.

The Atlanta-based carrier, which filed for bankruptcy protection in September, sought to renegotiate leases on the 88 planes to cut costs. The craft include MD-88s, 757 and 767 models, all made by Boeing Co.

While Delta would not comment specifically on why it chose to renegotiate rent payments on the planes with a group of the owners instead of individually, it may save the carrier time as it deals with other issues in its Chapter 11 reorganization.

Delta had already waived its right to sue the leaseholders for any potential antitrust violations when it first entered into an agreement with them, and reaffirmed that view Monday.