Delta Air Lines Inc., the third-largest U.S. carrier, asked a bankruptcy court judge Thursday to approve the company's agreement to purchase more regional jets that will allow it to expand into new markets.
The Atlanta-based company said it has reached a deal with Bombardier to buy 30 aircraft with the option to buy another 30 aircraft.
The aircraft, which sell for about $35.2 million (euro26.8 million) each, are assembled in Mirabel, Quebec, with the fuselage coming from Belfast, Northern Ireland.
"It's a strong sign that the regional aircraft market is turning to larger capacity regional aircraft," said Bombardier spokesman Marc Duchesne.
The two-class aircraft are 76-seat regional jets that "will permit Delta to expand into new markets that it cannot now profitably serve and to upgrade, where appropriate, markets being served with smaller aircraft," Delta said in its motion.
The deal is related to Delta's decision in August to reconsider which regional carriers will provide it with connecting flights in some markets. Delta subsidiary Comair Inc., which is based in Erlanger, Kentucky, has been trying to cut its costs so it can compete for the flying.
The delivery dates for the new aircraft Delta is buying range from September 2007 through February 2010. The additional aircraft Delta has the option of buying would have delivery dates ranging from January 2008 to March 2009.
The terms of the deal were not disclosed.
A hearing on the request to approve the agreement, if necessary, has been scheduled for Jan. 18 in U.S. Bankruptcy Court in New York.
Delta, which filed for Chapter 11 reorganization in 2005, has been cutting domestic capacity while expanding international capacity. It also has been restructuring aircraft leases, selling aircraft and buying others as it makes changes to its domestic and international services.
Delta has filed a reorganization plan that calls for it to emerge from bankruptcy as a stand-alone company by the middle of this year. Tempe, Arizona-based US Airways Group Inc. has proposed a hostile bid to buy Delta to create the nation's largest carrier.
___
On the Net:
Delta Air Lines Inc.: http://www.delta.com
News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.
